Who are the actors in money transfers?

Both individuals or businesses need to do international money transfers. The first time you need to move money across countries it can be difficult to know how to do it to optimize the transfer. However the options are not missing. Many actors operate in money transfers. Here is a quick overview.


The Banks: the biggest actors in money transfers

The solution the most known: 95% of the people use their bank to do a transfer. The pros is that it is simple safe and secure as a bank already know all your personal information. That said it depends because with more and more regulations it is not so easy to make an international transfer sometimes with a bank. It doesn’t allow you to transfer in every country. But the real con with banks is that they take huge fees on your transfer and you don’t even know it because the fees are hidden in the exchange rate used. An international transfer can be advantageous with banks if the recipient has an account abroad with a branch of your local bank.

The foreign exchange brokers (FX brokers)

Another actor in money transfers: the brokers. The latter are specialised in exchange of currencies. They can provide better exchange rates than banks but they are only to use for large sums to transfer because there is a minimum transfer amount to operate and their rates are not so advantageous for small transactions. They are advantageous for big amounts to transfer. A few steps are required to create an account with them and book a transfer. Ideal for someone doing regular transactions or for businesses sending a lot of money abroad. You’re directly in contact with a broker.

The traditional money transfer operators  (MTO)

You probably know the traditional money transfer operators which are Western Union, MoneyGram and Ria money transfer. They are so huge that they almost own all the market in cash-to-cash transfer to them three.

The online MTO, peer-to-peer companies

At last there are the peer-to-peer MTO. They are the most recent as they all appear in the last ten years. They are really innovative, online, cheap and easy to use. They allow to drastically reduce fees in money transfers. The average cost of sending money abroad with an online MTO is in average 2% to 3%. They are really interesting actors because they are new, innovative, and all can be made online. They provide a wide range of payment and delivery methods. With your bank or with a broker you can only do bank-to-bank transfer. With online MTO you can pay by credit card, debit card and you can receive the money by cash pickup, bank deposit, mobile wallet, mobile recharge and even by email. The only con they have right now is that sometimes there is a maximum amount to operate but this is gonna evolve with the growing market. More and more people hear about these MTO. A good example is Transferwise.

The blockchain network

At last there are the blockchain networks based on a new revolutionary technology. They will be in the future the cheapest options but at the moment the market liquidity is limited, and it’s usability not really optimized for a large public. If you need more informations about the blockchain, feel free to check their site:

Here you go you know all the options to do money transfers. If you want to know more check here a at a comparison service

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