What are the cheapest ways to send money overseas?

The key is to understand the exchange rate you've been offered and checking what fees will be applied

- JUSTIN HARPER

Millions of expats living in the UAE transfer money overseas on a regular basis. In fact, the UAE is one of the top remittance hubs in the world, with billions of dirhams sent abroad every year. But how can you make international transfers in the cheapest, safest, and most efficient way? The key is to understand the exchange rate you've been offered and checking what fees will be applied.

Understand exchange rates

If you look at an exchange rate on Google, it gives you the “mid-market rate” or the real interbank rate that banks use when they trade with each other. But many providers don’t give you this rate. Instead, they add a markup - sometimes as high as 2-4 per cent which can turn into hundreds of dirhams if you're sending larger sums. For example, sending Dh10,000 to India at a rate just one per cent lower than the market rate means you lose Dh100 instantly. So always check the exchange rate being offered and compare it to the mid-market rate.