Forex Trading and Remittances: Understanding the Relationships

  • Posted by Tom on February 3, 2015 in Market

Forex trading can often be a risky business – after all, no-one can say exactly what will happen to the value of a currency at any given time. Despite this, it has been proven that there is a certain relationship between remittance and currency value. Let’s take a look at this association of forex remittance.

Currency Pairs

What Causes Change in Foreign Exchange Trading Markets?

Currency prices are determined by supply and demand.

When I use New Zealand dollars (NZD) to import goods from the United States, I am supplying NZD (thus potentially lowering the value of the NZD) and demanding USD to buy the American goods with (thus increasing the value of the USD).

Many different things influence the supply and demand of a currency, such as interest rates, investment prospects within a country, and exports.

Having said this, however, if one New Zealander buys a TV from China, it will have little to no visible effect on the value of the dollar – as it is too small a transaction. Only when a large number of people buy Chinese TVs will it impact the value of the NZD/Yuan. It must be a trend among people, or particularly large transaction (such as an action taken by a central bank involving billions of dollars).

How Does Online Remittance Affect Currency Value?

When people from the UK send money to India, they are demanding Rupees and therefore increasing the value of the Rupee compared to the Pound. So as expatriate Continue Reading…


Pinoy Remittance and Doing Business in the Philippines

  • Posted by Paul on February 2, 2015 in Financial Tips

Many overseas Filipino workers have flown far from their home in search of opportunity in recent times, in order to support family at home in the Phillipines. As a result, the amount of Pinoy Remittance being sent has grown astronomically, making up 5-10% of GDP in the last few years alone. The Internet has made sending money to the Philippines easier than ever, and with this comes the development of remittance culture to compliment pre-existing businesses.

Pinoy remittance

An Influx of Pinoy Remittance

The Philippine economy has benefited from healthy growth as a result of remittance, reaching a total inflow of around 28 billion in early 2014 (approximately 10% of overall GDP). This stimulates the domestic economy and allows it to grow through increased spending.

Remittances enter the country through the banking system, smaller wire transfer businesses, and even through physical carriage – the majority of which comes from the US.

Doing Business in the Philippines

Conducting business in another country requires different etiquette. In the Philippines, it is traditional that business dealings be dealt with face-to-face. Many Pinoy business dealings begin with talk of mutual friends and family, rather than the topic of the meeting. Business cards are standard procedure, and are exchanged in a manner less formal than in Western cultures.

Many firms, including the Philippines Government, normally have similar office hours to Western countries (8am to 5pm). Having said this, most banks operate from 9am to 3pm. Business is best done mid-morning or in the Continue Reading…


A Currency Exchange Rate Calculator That Will Save You Money

  • Posted by Lauren on February 1, 2015 in Financial Tips

NOTE: If you’re looking for a quick exchange rate calculator, try the one in the top right hand corner of this page – you’ll love our exchange rates!

$1 New Zealand Dollar (NZD) is 45.21 Rupees (INR). But 1 INR is 0.02 NZD. Hang on, what if I’m sending $1352 NZD and receiving 2835INR. That must mean… that… I have… No idea…

Fortunately there is an easier way. If you want to convert one currency into another, you could always use a currency exchange rate calculator. But what are foreign currency exchange rates? And why do we need a special calculator to understand them?

Currency Exchange

What are Currency Exchange Rates?

Currency doesn’t have its own price – it is priced in relation to other currencies, called a “currency pair” (such as 1 NZD being worth approximately 45 INR). As a result, a currency doesn’t go up or down in price per se – it simply changes in value relative to another county’s currency. We’re essentially just comparing two currencies – otherwise known as the exchange rate.

This rate changes based on demand for the currency and is influenced by the individual economy (such as inflation and interest rates), political stability, and state of country (such as natural disaster).

So How Does a Currency Exchange Rate Calculator Fit In? And How Does It Work?

A currency rate calculator (like the one in the top right hand side of this page) allows us to input any amount of a single Continue Reading…


Sending Online Remittances to the Philippines, Fast & Easy

  • Posted by Hieu on January 29, 2015 in Financial Tips

Sending online remittance to Philippines has never been easier – after all, it just takes a few clicks.

Philippines Money Transfer

We’re going to show you how to send money abroad using OrbitRemit, so that it reaches its destination quickly and hassle-free.

How to Send Online Remittance to the Philippines

Step One:
The first thing you’ll need to do, if you haven’t already, is sign up to OrbitRemit. Click on the button on the top right hand side of the screen that says “get started” to do this. This will cause a form to appear – this just requires some simple details, like your name, email, postal address, and password. Just follow the instructions to get signed up.

Step Two:
Use our calculator in the top right hand corner of the page to work out exactly how much will arrive at its destination. Put in the type and amount of currency you have, then select “Philippines Peso” (PHP).

Step Three:
Once you know what you’re getting, you’ll have to set up the transfer with our online system. Just tell us the recipient’s name, bank account number, and any other indentifying details we ask for. Then we’ll tell you what information you’ll need to give to your bank. We’ll also tell you exactly what fees you have to pay, and exactly how much will end up at the receiving end.

Step Four:
Now you’ll have to transfer the money into OrbitRemit’s domestic account. Ask your bank for help if you’re having trouble, as Continue Reading…


How to Receive Remittances and International Payments

  • Posted by Tom on January 28, 2015 in Financial Tips

You’ve probably heard a lot about sending remittance to another person, but how do you pick it up at the other end? What exactly do you need to know in order to receive remittance payments?

Receiving Money

How to Receive International Payments

It’s important to know that the process for receiving remittance differs between transfer providers.

Often, providers will transfer money directly into a bank account, so you don’t actually have to do anything! On the other hand, some providers (such as Western Union, in certain countries) require you to collect money in the form of cash at one of their outlets. Not only does manual pickup take time, but it also isn’t as secure – however it can be useful if you are travelling and can’t receive direct to a bank account.

Some providers, such as PayPal, require the money to be transferred to an online account, rather than directly a bank account. It must then be transferred from that account (ie. your PayPal account) to your bank account. This takes extra time and hassle, and the exchange rates are relatively poor.

When the provider transfers directly to a bank account, like OrbitRemit does, you cut out a lot of the cost and hassle and can receive payments online through Internet banking.

Wait for the Delay – Patience is a Virtue

One of the most important things to remember when receiving international payments is that it takes time for things to process. With most providers, the money won’t Continue Reading…


Electronic Funds Transfers Explained: Electronic Remmitances in the 21st Century

  • Posted by Paul on January 27, 2015 in Technology

Electronic remittance is the way of the future. It’s a form of Electronic Funds Transfer (otherwise known as EFT). Doesn’t ring a bell? You’ve probably used it before already. But what exactly is ETF?

Electronic Funds Transfers

What is an Electronic Funds Transfer?

To give a technical definition, it is the electronic exchange of money from one bank account to another. This removes the need to carry exact change or cash a cheque at a later date.

So when you swipe your EFTPOS card to buy fuel, pay your power bill online via direct deposit, or remittance transfer money overseas via a service like OrbitRemit, you’re performing an EFT. It’s a bit safer because you’re not sending physical money, just secure data. It’s also very quick and easy, saving you money and headaches on administration costs.

How is Digital Technology and Remittance Software Changing This?

Technology is certainly making things easier for us to utilize electronic transfers. Take online banking smart phone apps, which allow us to transfer money to another bank account via Wifi. Many banks even allow customers to use cell phone numbers as a recipient for transfers.

Online shopping is completely reliant on an electronic transfer of funds, as it allows customers to pay instantly via credit-card or bank deposit, rather than having to post physical money or a cheque to the seller. Imagine if Amazon.com required you to pay for your goods without electronic transfer. You’d have to post or deliver the physical money Continue Reading…


International Remittance Processing Services Explained and Compared

  • Posted by Jason on January 26, 2015 in Financial Tips

There are plenty of companies that process international remittances. But what makes them different? How do you know which is the best one? Let’s compare a number of the most well known remittance services and see which ones stand out in terms of fees, rates, security, transfer times, and satisfaction. That way, you can make sure you’re getting the best deal when you send money abroad.

Compare transfer prices

TransferWise

Fees: 0.5% of transaction
Exchange Rates: Good
Security: Reasonably good (HTTPS encryption)
Transfer times: Up to five working days – sent from bank to bank

TransferWise offers reasonable rates for international currency exchange, but is not always the quickest when it comes to transfer time. Transfers can take up to a week complete, which is a real hassle in an emergency or time of need. TransferWise also doesn’t offer much in the way of a loyalty bonus for regular customers. However, the system is otherwise reasonably convenient, transfers directly to a bank account, and has high satisfaction (provided users are in no hurry).

PayPal

Fees: 3.4% + $0.45 NZD
Exchange Rates: Poor
Security: Very good (due to its size – SSL connections)
Transfer times: Almost immediate for transfers from one PayPal account to another, but up to a week for bank transfers.

A quick, secure option for sending international remittance if transferred between PayPal accounts. However this is offset by reasonably high percentage fees, which are particularly hefty if a large amount of money is being sent (on $10,000, 3.4% is $340). PayPal Continue Reading…


Mobile Remittance Payment Systems: Send Money Home from Anywhere

  • Posted by Tom on January 25, 2015 in Financial Tips

So you’ve been told your phone is smart. A smart phone. Devices, such as smart phones and tablets, are so smart that they can quickly send a mobile remittance from one side of the world to another with just a few taps. But what are the risks involved? This article is here to help keep you safe from cybercriminals.

Mobile Banking

About Mobile Payment Systems – Choosing a Password

Most mobile payment solutions, like OrbitRemit, require setting up an account to make payments with.

This account is set up using an email address and is protected by a password. Passwords are like a key to your account, so you want to keep it private and difficult to guess to stop anyone else getting in. Many people use the word “password” as a password or their name/email address.

This is not a good idea because it is common and easily guessed by anyone that knows you (and often by people who don’t!).

Generally it is good to have a password with a mix of upper case and lower case letters in it, as well as numbers. Eight or more letters or numbers creates a more complicated password and is a good idea.

Pretend your name is Susan:

“susan” is a weak password. It is too easy to guess, too few characters.

“SuSan” is a better password. The random capitalisation makes it much harder for someone to guess or break using a software program. But it still has too few characters and Continue Reading…


Foreign Remittance – Driving Economic Development in India and the Philippines

  • Posted by Lauren on January 22, 2015 in Financial Tips

You may think that only your loved ones benefit when you send money overseas. In reality, there are some huge added bonuses for the wider community in your home country when you send money back. Foreign remittance has a wider effect and provides economic fuel to the whole receiving country. Let’s take a look at how simply sending money to a country can drive its future development.

Foreign exchange

Why Spending and Sending is Good

Every dollar you spend, someone else earns.

Every dollar you earn, someone else has spent on your services.

Think about it:

If a hairdresser buys food from a supermarket, the supermarket owner, employees, and suppliers earn money. They may spend this income on clothes, allowing a tailor to earn money to spend at the hairdresser. The hairdresser can then afford to buy more from the supermarket, and everyone earns a higher income as a result. In an economy, everyone is connected in a cycle; like a money-go-round.

Spending drives earning, which allows more spending.

When you send foreign remittance overseas, your loved ones spend it in your home country. This injects money into their local economy, so people are able to earn and spend more. Injecting money from outside stimulates and grows the whole economy, and this plays a central role in encouraging economic development in india, the Philippines and elsewhere. This increase in spending drives growth and expansion of businesses and markets – resulting in future economic development in recipient countries.

Further Benefits of Continue Reading…


Online Remittance Services – Is Paying Online Safe?

  • Posted by Tom on January 21, 2015 in Financial Tips

Almost every week there is something in the news about the tightening of online remittance regulations. Countries all over the world are making changes to their laws to limit people using money transfer services for nefarious purposes, such as laundering money and funding terrorism.

Compliance and Regulations

Whether you’re sending online remittances to the Philippines, India or elsewhere in the world, these changes impact you. In this article we’re going to take a look at a few major remittance markets and see what the law says about international remittances going to and from them.

2013 and 2014 were big years for legislative shake ups in international money transfers, with many countries around the world either introducing new legislation or tightening up existing laws. Let’s take a look at some of the big shifts that have occurred across the US, UK and Australasia.

The United States

In 2014 the US passed a bill called the Money Remittances Improvement Act. This act was aimed at streamlining the overall process of non-bank remittance services keeping in line with regulations. This act enables smaller remittance providers and those sending remittances to keep in line with the law without the overheads of some of the heavier acts, that were targeted at larger institutions such as banks.

The United Kingdom

Her Majesty’s Revenue & Customs has tightened laws on what money can be brought into the United Kingdom and how it can be taxed. This has a significant impact on migrants who need to Continue Reading…