It seems that there are no limits with regard to the peer to peer phenomenon. Whether it is taxi travel through Uber, apartments through Airbnb or loans and loans of funds online, the peer process allows consumers to exchange value with a limited dependence on the external intermediary.
As such, it was only a matter of time before peer space reached the international multi-million dollar money transfer industry. One of the first innovators to realize the benefits of a peer money transfer service is that of CurrencyFair.
Simply put, CurrencyFair offers you the option of choosing your own exchange rate. If another user within the CurrencyFair ecosystem is pleased to take the same rate, he can exchange peer-to-peer currencies.
In terms of the exchange, by sending the required funds in your local currency to CurrencyFair, the platform will send the funds in the beneficiary's local currency directly to your bank account. In doing so, the process is not only much faster than using the SWIFT network through a traditional financial institution, but it is also significantly cheaper
If this sounds like something you would like to explore further to assess whether the process is conducive to your international transfer needs, be sure to read our detailed review of CurrencyFair.
We will cover everything from how the money transfer process works, what kind of fees you are likely to get, what rates you should consider, how long the transfers take and more.
What is CurrencyFair?
CurrencyFair is a third-party money transfer company that allows you to send funds to your chosen beneficiary through its website. Launched in 2009, the platform is based in Ireland, although it also has offices in the United Kingdom, Singapore, Hong Kong and Australia.
The general concept of the CurrencyFair platform is that everyday consumers can now benefit from fast money transfers that have a cost that is substantially lower than what established providers charge.
In fact, the CurrencyFair team states that its money transfer service is 8 times cheaper than what banks usually charge, resulting in savings of more than € 230 million for their customers since the start of the company. More specifically, this amounts to an average exchange rate that is only 0.4% higher than middle market rate.
While the specific money transfer process itself is not very different from the process executed by its main market rivals, it is the peer exchange system that makes CurrencyFair stand out.
Through CurrencyFair Exchange, buyers and sellers of competing currencies meet, allowing users to benefit from more competitive exchange rates in their respective currencies. If an adequate match cannot be provided, you will have the option of taking the best available rate in the market at the time of the transfer
How does CurrencyFair work?
To show you how the CurrencyFair international transfer system typically works, below we describe the general process step by step.
Step 1: open an account
First, you should go to the CurrencyFair website and open an account. You can do it online or through your mobile web browser. You will be asked several questions related to your personal identity, such as your full name, address, date of birth and contact information.
Step 2: Verify your identity
You will now be asked to enter your document number issued by the government. In most cases, it must be your passport or driver's license number. The CurrencyFair system will attempt to verify your identity by cross-referencing the information with your third-party sources.
If the system cannot do this automatically, CurrencyFair will ask you to upload your document. The system should be able to verify the authenticity of the document automatically, which means that the verification process should not take more than a couple of minutes.
Step 3: choose your coins and how much you need to send
Once you have completed the account registration process, you can make your first international transfer. You must select from where you will send the money (by default, this will be your country of origin and your currency), and to which country you want to send the funds.
The local currency will match that of the chosen destination.
You must also enter the amount you want to send. You will do this by indicating the number in your local currency, with the amount of the opposite currency being updated in real time as you enter it.
At this stage of the process, you will be given a complete breakdown of the rates involved. If you wish to continue, continue with the next step.
Step 4: Enter the details pertaining to the beneficiary
Now you must enter details about the person to whom you send the funds. As CurrencyFair will forward the funds to the recipient's local bank account, you must enter your bank details. Since payment is not made through SWIFT, you will not need to provide the BIC and IBAN numbers associated with the account. On the contrary, you will enter the local bank account number for the beneficiary, as if you were executing a national bank transfer.
Step 5: Pay your CurrencyFair transfer
Once you have provided CurrencyFair with the basics of the transfer, you must finance it. In this regard, you have two options at your disposal: a bank account transfer or a debit card.
If you opt for a bank account transfer, you will send the funds directly to the CurrencyFair bank account. The specific details of the account to which you should send the funds will depend on your country of residence. For example, if you reside in the United Kingdom, you will make a national transfer to another UK bank account.
If you opt for a debit card, you must enter your card details directly into the CurrencyFair payment portal, and the transaction will be processed instantly.
Step 6: wait for the funds to arrive
As soon as CurrencyFair receives your payment, they will take care of the rest. Simply put, CurrencyFair will use one of your local bank accounts in the beneficiary's country of residence. As such, although the exact financing term will vary from country to country and from bank to bank, it should not take more than 1-2 days.
How much does CurrencyFair cost? Rates and exchange rates
When using an international money transfer service, one of your main concerns should be related to fees. In the case of CurrencyFair, you must consider two key fronts: the fixed commission rate and the specific exchange rate you can obtain.
- Flat commission rate: In the vast majority of cases, you will pay a fixed commission of £ 2.50 per transfer, or the equivalent in your local currency. This rate remains constant regardless of how much you send.
- Exchange Rate Marking: You will also have to pay an exchange rate surcharge when sending funds through CurrencyFair. While the specific profit margin will vary depending on a variety of factors, this generally averages 0.4% above the average market rate.
For example, if I transferred £ 2,000 to a relative in Australia, I would pay £ 2.50 in commission and £ 6 in exchange rates, which brings the total cost to just £ 8.50.
Peer to peer exchange market
If you are not in a hurry to make your transfer, it is worth seeing if you can get an even better exchange rate through the CurrencyFair market. Simply put, you are offered the opportunity to indicate the required exchange rate, which is then published in the market.
If (A) another user is looking to get you currency, and (B) has the currency that you they wish, and (C) are happy to take their established exchange rate, CurrencyFair will execute the operation on their behalf.
However, the platform will charge you between 0.25% and 0.3% of the amount you transfer, so, in reality, you are not saving a considerable amount by doing so.
How long does CurrencyFair transfers take?
Again, there is no strict rule about how long a specific transfer will take, since it depends on a series of variables. This includes the amount you are sending, where the money is going and how fast the respective bank can liquidate the funds. However, CurrencyFair notes that in most cases, transfers generally run within 1-2 working days.
What currencies are compatible?
At the time of writing, CurrencyFair supports the following currencies:
- American dollar
We have reviewed other money transfer services here at MoneyCheck, as follows:
CurrencyFair Review: The Conclusion?
In summary, using the CurrencyFair platform to send money abroad is as simple as possible. You simply need to enter the amount you want to send and to whom, pay the transfer, and then CurrencyFair will take care of the rest.
In addition, with a flat commission of £ 2.50 and an average exchange margin of only 0.4%, the platform has a really good price. In addition, although the potential savings are somewhat tiny, we really like the peer currency exchange market offered by the platform.
The only crack in the armor for us is that the transfer time could be faster. In fact, companies like TransferWise can often complete the entire process from end to end on the same day.
- Very competitive exchange rates
- Low rates
- Great app
- Easy to use
- Not available for US residents. UU.
Disclaimer: The opinions expressed herein are only those of the author, not those of any bank or credit card issuer and have not been reviewed, approved or endorsed by any of these entities.
Disclaimer: The answers below are not provided or commissioned by the bank advertiser. The responses have not been reviewed, approved or supported by the bank advertiser. It is not the responsibility of the bank advertiser to ensure that all publications and / or questions are answered.[ad_2]