- Posted by Paul on October 6, 2014 in Market
In the past few weeks the Australian Dollar has taken a pretty substantial hit against the US dollar, losing nearly three cents in one week alone. In this article we’ve put together a quick analysis of what has caused this correction and had a look at some factors that are likely to impact the value of the AUD in coming weeks.
The Australian Export Economy
One of the biggest things that exerts pressure on the value of the Australian dollar, is commodity prices. When it comes to international trade, the Australian economy is very reliant on high value mineral exports. Australia’s largest export commodity is iron ore and, as such, fluctuations in its value are a very good indicator of the value of the currency. A surge or decline in value of iron ore can have a dramatic effect on the value of the AUD, so it’s certainly something that currency speculators keep an eye on. One such surge occurred in the middle of this month, with the price of iron ore skyrocketing by nearly four full percentage points, and this resulted in a rise in the value of the Aussie Dollar.
Of course with any currency exchange, there are two currencies to take into account. If we’re looking at the value of the Australian dollar relative to the USD, then increases or decreases in value on both sides of the transaction need to be factored in. The USD has been steadily increasing Continue Reading…
- Posted by Tom on October 6, 2014 in Financial Tips
Sending money to friends, relatives or business associates in the United States is a reasonably common thing to do these days. As technology knocks down the barriers of geography, our personal and business lives are becoming more and more global in nature. The problem is that transferring currency abroad can often be an expensive and confusing proposition, with plenty of players in the market and all of them telling you how great, cost effective and secure their services are. This means that what may appear to be the cheapest way to send money to the USA, may not actually be all it appears.
Let’s cut the wheat from the chaff and take a real look at what the cheapest options are for sending money to relatives or business partners stateside. You’ve got a few options, some of them coming from more traditional businesses such as banks and remittance services and some of them from online service providers like us.
Using banks or ‘bricks and mortar’ remittance houses
Here’s a quick list of things that you need to be mindful of if you’re going to make the decision to go down to a high street bank branch or remittance counter and ask them to transfer some currency over to the States for you:
-Banks will often charge very high fees for international transfers and the receiving bank will also charge the recipient a fee in many cases.
-An international telegraphic transfer can take up to Continue Reading…
- Posted by Lauren on October 2, 2014 in Financial Tips
If there’s one thing we know here at OrbitRemit, it’s that people have been paying far too much to send money from the UK to the United States. The world is getting ever smaller and technology is making virtually everything much cheaper and faster – gone are the days when an international transfer was a complex and difficult thing to complete. These days sending money from the United Kingdom to America is as simple as transferring a few bytes of information to the receiving institution.
As the world continues to shrink, the need for people to transfer money overseas is increasing. That means that more and more people are throwing away their hard earned money on unnecessary fees and charges, just so they can get their cash to where it’s needed. The United Kingdom and the United States, cultural differences aside, remain very close cousins and with the two societies being so closely interlinked (especially in terms of business and trading relationships) the need for cost-effective and fast ways to transfer cash stateside is extremely pressing.
So what are the best options for people in Britain to transfer currency across the Atlantic? How can you make sure that the money you’re sending gets where it’s needed expediently and with minimal expense? As with any transaction you’ve got a plethora of options, however the uncomfortable truth is that not all remittance services are created equal. Here’s a breakdown of the big Continue Reading…
- Posted by Paul on October 1, 2014 in Financial Tips
Travel exchange rates are a moveable feast and something that every traveler would do well to have an understanding of before they set off on their journey. You’ve finally saved up for that dream holiday, you’ve got the time off work, your bags are packed and you’re looking forward to kicking back on a beach with a Mai Tai.
There’s just one thing you haven’t done yet: purchased your foreign money. How you go about doing this is a big decision. Tourists can find themselves taking hits of ten or fifteen percent if they choose to exchange their travel funds at the wrong place. That means your holiday budget could have its wings clipped rather significantly if you’re not wise to the ways of how to get the best possible exchange rate when you’re traveling.
Tip One: Make sure you arrive at your destination with some local currency.
The biggest enemy to getting the best possible exchange rate for your foreign currency is urgency. You don’t want to find yourself at an airport having to exchange a few hundred dollars because you need to pay for a taxi. In fact, if you can avoid it (and you can with a bit of planning) you don’t want to exchange funds at an airport at all. The difference between an exchange conducted at a city bank and at an airport exchange booth can easily be 3 or 4 percent. That means Continue Reading…
- Posted by Tom on September 30, 2014 in Financial Tips
Sending child support payments to the IRD back in New Zealand is one of those things that you’ve got no real choice about. Even when you’ve shifted across the ditch you are still legally liable and, should you end up with back child support to pay there is an arrangement in place that enables the NZ government to request help from the Australians to get it from you.
Reciprocal arrangements between NZ and Australia
There’s a reciprocal agreement between Australia and New Zealand, which allows the IRD to ask the Australian Government to garnish the wages of delinquent child support payers who are living in Australia. It can be confusing sending money internationally but, especially when it comes to the tax authorities and your commitments, it’s important to make sure you stay up to date with your obligations to avoid legal problems.
So what’s the most effective way to send child support payments internationally, without the cost of transferring cash making it significantly more expensive?
The expense of using traditional methods
Sending payments back to New Zealand can be an expensive proposition. If you plan to do an international transfer with your bank you can expect the fees to work out to about $50 all told (roughly half at each end). That can really add up when it’s a regular, fixed commitment.
The IRD recommends that payments be made by cheque, international money order, telegraphic transfer or credit card. None of these options Continue Reading…
- Posted by Lauren on September 29, 2014 in Financial Tips
To send money from Australia to the Philippines you’ve got a range of options to choose from. The process can be expensive and confusing and you’ve got to do your research before you make a final decision on what process and provider is going to suit your requirements.
Direct transfer from your Australian bank to a Philippines account
This does, on the surface, seem like a relatively straightforward option for your transaction. It’s secure and the money will generally take around 5 working days to reach its destination.
The downside is that this is not generally the cheapest way to send money from Australia back to the Philippines. As an example, Westpac Australia charges $25 to send a TT and, depending on which bank is receiving the funds in the Philippines, there will likely be another charge levied at the other end before the funds get where they need to go.
Using a specialised remittance house
There are a number of specialist remittance companies that are a popular choice for expats to send money back to family in the Philippines. They certainly have their advantages. Often you will find that operators of this nature will charge rather high fees though, occasionally at both ends of the transaction.
While these are fees often lower than a traditional bank, there may still be a more cost effective way for you to transfer money to the Philippines. You’ll need to check with the remittance provider how Continue Reading…
- Posted by Paul on September 28, 2014 in Financial Tips
Transferring money to the United States is far from being a simple and straightforward process for most people. There are all sorts of hooks in the international financial system that could see you wasting time and money in the process. Here at OrbitRemit we are all about making sure that our clients know exactly what they should be aware of before sending an international currency transfer.
While we pride ourselves on being fully transparent when it comes to fees, service charges, timeframes and exchange rates, unfortunately not all providers are as responsible. To help you out, we’ve put together this list of the five biggest things that you should know before attempting an international remittance to the United States.
1. You’ll seldom get something for nothing
Some providers that offer fee-free transfers will compensate for this by padding their exchange rates unreasonably. When you’re sending money to the States, no matter if you’re in New Zealand, The United Kingdom or Australia, you’ll need to make sure you take care to read all the fine print and know exactly what you’re likely to get charged. While we offer fee-free transfers to new customers, it’s not done by padding our exchange rates way above market rates – this is not the case with some other providers however. Make sure you get an idea of what a fair exchange rate should be before taking a fee-free offer at face value.
2. It can take time to Continue Reading…
- Posted by Tom on September 25, 2014 in Financial Tips
Sending money to the USA doesn’t have to be a complicated, expensive or time-consuming process. To make things easier, we’ve prepared an easy-to-follow, step-by-step guide to take you through the process of how to send money to the United States online.
1) Choose your service provider
You will need to do your research and work out which provider is best for you, as all of the major online remittance services have slightly different offerings. If you’ve never performed an online money transfer before, OrbitRemit is a great choice as we will waive the fees on your first transfer so you can give it a try with nothing to lose.
2) Give the provider the details of your recipient
Once again the providers will differ on this front with many requiring the person at the other end to physically present at an office in the United States in order to collect their funds. You need to take some care here, as different operators will have different requirements when it comes to what documentation the recipient needs to have with them when they collect the cash. With OrbitRemit, we transfer straight into the receiving bank account within one business day of receiving your cleared funds, so we keep things pretty straightforward.
3) Transfer the funds to the provider you have selected
This process will differ slightly between the providers. Some will require you to use a credit card to fund the transfer, others may require you to Continue Reading…
- Posted by Paul on September 24, 2014 in Market
The GBP to USD exchange rate is a complicated beast. There are a wide range of factors that will have an effect on the two currencies generally and relative to each other over the long term. Changes in interest rates, political friction and the general risk appetite of currency investors, are all things that can exert pressure on the currencies and on the markets in general.
The Domestic Economy
Economic growth is obviously another factor that can cause one to suffer against the other. In situations where the American economy is suffering but the United Kingdom is experiencing growth, then you can expect the relative position of the Sterling to improve against the USD. Inflation in one or other economy, may put pressure on monetary regulators to increase exchange rates – this means that holding the currency becomes more attractive, as people can get higher returns on their deposits. This will generally also result in a commensurate increase in value of the currency.
The USD/GBP exchange rate has seen some fluctuations recently, generally to the advantage of the USD. The reasons behind this correction have a lot to do with the end of quantitative easing being on the horizon stateside and the fact that the Federal Reserve is very likely to take action around the raising of interest rates in order to curb economic problems that could arise from their changes to the money supply within the economy.
It goes beyond just Continue Reading…
- Posted by Lauren on September 23, 2014 in Company News Financial Tips
The OrbitRemit money conversion calculator is a tool we have developed to make it quick and easy to perform an exchange rate comparison. Simply click on the arrow next to the word ‘Calculator’ in the top right hand corner of this page and the calculator will drop down. Choose your currency of origin and destination, pop in your amount and we will, immediately, show you exactly how much will be received at the other end of the transaction. OrbitRemit also, unlike some other operators, don’t charge a fee at the other end of the transaction so the person collecting it won’t be charged again.
This is one of many ways that we work to make life easier for our customers. One thing that is extremely important at OrbitRemit is being transparent about exactly what we will deliver at the other end of the transfer – that means everyone knows exactly where they stand at every step of the way.
So if you’re considering sending some money overseas, make your life easy and take a look at exactly what’s going to go in and out. The fact that we operate on a fixed fee model also makes it far cheaper to send any amount of money, anywhere it needs to go, in no time at all. What you see in our currency conversion calculator lets you know exactly where you stand.
If you’d like to take a look at our rates then Continue Reading…