Currencies:

130

Transfer speed:

1 – 3 days

Trustpilot score:

4 stars

Our score:

2 stars

Website:

westernunion.com

Western Union is by far the largest money transfer company in the world. But it is very expensive and there are now much better alternatives out there.

Western Union basically invented money transfer, and is by far the largest company of its type in the world. For over 100 years, millions of customers have relied on its services to move money to friends and family around the world.

Despite the company’s massive payment network, the landscape of international money transfer is quickly changing with technology advancement. While there are still many living without formal banking infrastructure, as each year passes by, Western Union is closer to disruption by its younger and more nimble competitors.

Western Union claims to be one of the easiest ways for families, friends and businesses to send money around the world. To learn more about their capability, and to see if their service is right for you, read on for my in-depth review of Western Union.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Western Union was founded by Ezra Cornell in 1851, originally as a service for exchanging telegrams. (For you younger readers out there, telegrams were how people sent short messages across long distances before the advent of telephones). Over time, the company expanded their services to allow customers to make in-person transfers through its retail locations, and then eventually online also.

The telegram aspect of Western Union’s business was discontinued in 2006, however, money transfer services are very much a core unit of the company’s operation. Western Union is by far the largest provider of money remittance services in the world, transferring over $300 billion on behalf of its customers in 2017 alone. It is much larger than even its closest competitor, MoneyGram (review), who by comparison is estimated to transfer $25 million annually.

Western Union is currently lead by Hikmet Ersek as CEO. He is supported by Raj Agrawal who acts as Chief Financial Officer, and by Odilon Almeida who is President of the Global Money Transfer business unit. Sheri Rhodes oversees all technical aspect of the company as Chief Technology, while Caroline Tsai is the group’s General Counsel. Jacqueline Molnar rounds out the executive team of note, as Chief Compliance Officer.

1.1. Company details

2. Supported currencies

Western Union supports the transfer of 130 currencies, leading to a total servicing of over 200 countries. To support this extensive reach, the company has established a network of bank accounts, using a combination of international banking partners, as well its own locally based subsidiaries. In addition to bank transfer, the company can also deliver funds by other methods such as:

• Cash pick up
• Mobile money

Western Union does not have a minimum transfer value. While the company is equipped to complete transfers of varying sizes, its online platform is limited to a maximum transfer amount of £4,000. For residents of the United Kingdom completing bank to bank transfer, it is possible to complete transfers of up to £50,000. For any values larger than this, you will need to approach one of Western Union’s retail stores directly to arrange an in-person transfer.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Western Union typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of Western Union against traditional banks, the company fares slightly better. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Western Union, on the other hand, charges a small flat fee of only €2.90. The exchange rates are marginally more competitive than the banks, leading to the total cost of a transfer amounting to approximately 4.65% of the total amount transferred for small values (€250), and 3.58% for larger values (€5,000).

When comparing Western Union to other specialised currency transfer services, it does not stack up very well at all. While currency services such as TransferWise (review) and CurrencyFair (review) do not take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. Unfortunately, these alternatives can’t always send funds to all corners of the globe and by a variety of methods, which is one of Western Union’s primary strengths.

As an example, let’s compare Western Union against its competitors when exchanging Euro (EUR) into Australian Dollars (AUD):

While there may be some benefits to using Western Union, its certain is expensive. However, its ability to provide payments to hundreds of countries and by a variety of methods, it does have its uses. Nevertheless, it is very unlikely to offer competitive exchange rates when compared to other similar remittance services out there, such as WorldRemit (review) and TransferGo (review).

4. Transfer speed

The speed of Western Union’s services vary greatly depending on the method of delivery selected. Transfers initiated via cash pickup and mobile money are completed almost instantly. While bank transfers usually take between 1 – 3 business days to be fulfilled.

5. Key features

What are the key features of Western Union’s online platform? Let’s take a look at the various payment services offered by the company.

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Western Union website, and with a couple of clicks, a transfer can be arranged. Unfortunately, at this stage, this is the only type of payment that Western Union can facilitate. As a result, anything resembling the more advanced features offered by other currency transfer services, such as scheduled payments or conditional orders, are not possible.

5.2. Flexible delivery options

Western Union’s strengths lay in its ability to transfer funds in a variety of customer-friendly ways. In this spirit, the company has established relationships with over 500,000 cash pickup locations in 200 countries. This large network of retail agents allow in-person transactions and provide flexibility into areas of the world with limited banking infrastructure.

6. Customer service

In addition to WesternUnion’s headquarters in the United States, the company has many international offices; so many in fact, that there are almost too many to list. These administrative hubs are supported by the company’s network of agents, which consist company owned stores as well as authorised third-parties. As outlined earlier, there are over 500,000 of these located around the world. Their locations can be found on Western Union’s website. For transactions occurring online, the company’s customer service team can be contacted by phone or email.

1800 173 833 (AU)
+44 808 234 9168 (UK)
+1 800 325 6000 (US)
uk.customer@westernunion.co.uk

In my experience, I found the Western Union customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is Western Union safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As Western Union is headquartered in United States, the company is regulated by FinCEN. Western Union’s international subsidiaries are also regulated by the relevant authorities in the jurisdiction of their operations, such as the FCA in the United Kingdom and ASIC in Australia.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of Western Union’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Western Union encounter financial difficulties.

7.3. Website security

The Western Union website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust Western Union? Let’s take a look at look at some of the key factors which affect the company’s reputation.

8.1. Trustpilot

As of publication, Western Union has received 12,659 reviews on Trustpilot with an average rating of 4 out of 5 stars; representing a positive experience in 88 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

In a strange move, Western Union have decided not to provide feedback to their customers on the Trustpilot. I can’t help but think this is an indication of their general attitude to customer service. Not a good sign, if you ask me. Or perhaps its just too much effort?

8.2. Social media

Upon viewing the Facebook and Twitter feeds of Western Union, we can see a range of varied interactions between the company’s customer service staff and its customers. As Western Union is very much a consumer level operation, they respond to many queries per day. Unlike their Trustpilot account, responses on Facebook and Twitter appear to be prompt and helpful. Additionally, the company has quite an active presence in posting general cultural news, aimed to engage their followers.

Hello, Steven, thank you for contacting us. Please send us a direct message for further assistance. We’ll be glad to help you. https://t.co/qKjoigB5Wz

— Western Union (@WesternUnion) June 25, 2018

8.3. Mainstream media

As for the mainstream media, their reporting on Western Union has generally been sparse but positive. As much of Western Union’s business is conducted at their retail stores, much of the reporting by media outlets surround the company’s plans on expansion into new markets, new partnerships, and acquisitions.

Western Union is the gorilla of money transfers, handling close to $1 in every $5 that is wired around the world. The Economist

Western Union Empire Moves Migrant Cash Home. New York Times

Western Union built its business on refugees and immigrants. Can it survive the political backlash against them? Bloomberg Businessweek

9. User experience

The Western Union website has been designed thoughtfully, with special attention being paid to user experience and simplicity. In addition to its online platform, Western Union has also developed mobile apps for both Apple and Android devices.

9.1. Signing up

The sign-up process is relatively straight-forward. You begin by entering your name, date of birth, email and a password. Then you must enter additional personal information such as address. The entire process takes around 10 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so Western Union can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does Western Union work?

To familiarise you with the Western Union service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along below.

Step 1

Visit westernunion.com and log in. Once you have entered the Western Union website, you are greeted with a relatively minimal interface. To begin a transaction, select the denomination of the currencies which you intend to transfer and click Start New Transfer.

Step 2

Select the country of your recipient, the value of your transfer in either the sending or receiving currency denomination. Then select how you would like the payment to be received and the method in which you would like to pay. If you wish to pay by debit or credit card, this is the fastest method of transferring funds to Western Union. Other payment methods can also be selected, including bank transfer.

Step 3

You can then add the specific information of your intended recipient. If you selected bank deposit as the method of delivery, as I have, now is the time to enter the recipient’s bank details.

Step 4

If you chose to pay by debit/credit card in the previous screen, now is the time to enter the relevant details.

A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Accept.

Once your transaction is confirmed, it is time for Western Union to get to work and begin processing your payment.

Step 5

Once your funds have been received by Western Union, they will finalise the transfer to your recipient. You can track your transfer online or with their mobile app. Additionally, throughout the process, you will be provided with email updates as the payment moves within the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the Western Union online platform was simple to use, despite the interface being a little simplistic, and I was satisfied with the updates provided to me along the way. The entire process took 2 business days, and the funds arrived into my recipient account as requested.

10. Conclusion and final thoughts

Western Union is the largest money transfer service in the world, but it is in no way the best. While it certainly does have large payment network – which is helpful to its users – this comes at a great cost. The exchange rates offered by Western Union are poor, an essentially amount to a tax of a sort on its customer who don’t know any better. While the company has maintained this business model for sometime, I can’t help but think that its days are numbered.

As an online platform, Western Union is a basic service. Expensive, and with low maximum transfer limits, money transfers with Western Union. With a number of new services putting customers first and foremost, such as WorldRemit or TransferGo, its hard to justify using Western Union any longer. And if your are making transfers between larger nations, you might even consider technology first companies, such as TransferWise or CurrencyFair (review). Although my experience with Western Union was acceptable, I’d suggest looking for a better deal if you can.

Our rating: 2 stars

Currencies:

60

Transfer speed:

1 – 3 days

Trustpilot score:

1 star

Our score:

2 stars

Website:

moneygram.com

MoneyGram is provides a quick and flexible network for money transfer, but is expensive and has low value limits.

Over its history, MoneyGram has adapted its business model many times on its way to becoming the one of the most popular currency transfer services in the world. Its brand has fostered a lot of trust among the public at large for being a safe and reliable provider of domestic and international payments.

While the company is best known for allowing its customers to send money through its network of retail agents across the world, they are also adapting to the digital age. In additional to its retail services, MoneyGram has an online platform that facilitates electronic remittances by a variety of methods.

It’s pretty clear that MoneyGram is working hard to stay relevant in an industry that is quickly changing. To learn more about their capability and to see if their service is right for you, read on for my in-depth review of MoneyGram.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

MoneyGram, as we know it today, was formed in 1998 when two separate companies, Travelers Express and MoneyGram Payment Systems, were combined under common ownership. The scheme to marry the two firms was adopted by Viad Corp, a large conglomerate organisation, which is probably best known for operating the Greyhound bus service for many years.

Since the merger of the companies and the adoption of a single brand, MoneyGram has quickly became one of the largest providers of money transfer services in the world. It currently sits only second to Western Union (review) in terms of annual transfer volume on behalf of its customers. Then in 2004, Viad sold their interest in the service, and MoneyGram was eventually listed on the NASDAQ as a publicly traded company.

MoneyGram is currently led by Alex Holmes as CEO, who has over 10 years of experience in the company. He is supported by Larry Angelilli who acts as Chief Financial Officer, and Kamila Chytil who is Chief Operating Officer. Andres Villareal oversees all regulatory challenges as Chief Compliance Officer, while Aaron Henry has been appointed as General Counsel and also performs Corporate Secretarial duties.

1.1. Company details

2. Supported currencies

MoneyGram facilitates the transfer of 60 currencies, leading to a total servicing of approximately 200 countries. To support this extensive reach, the company has established a network of bank accounts, using a combination of international banking partners, as well its own locally based subsidiaries. In addition to bank transfer, the company can also deliver funds by other methods such as:

• Cash pickup
• Mobile money

MoneyGram does not have a minimum transfer value, and the maximum transfer value is limited to £4,600. In addition to limits on each transaction, you are also limited to aggregate transfers of £4,600 each month. For any values larger than this, you will need to approach one of MoneyGram’s retail agents to arrange an in-person transfer.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like MoneyGram typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of MoneyGram against traditional banks, the company fares slightly better. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. MoneyGram’s fees are also rather high, costing between £5 – 85 for payments made by debit or credit card. The exchange rates are marginally more competitive than the banks, leading to the total cost of a transfer amounting to approximately 3.50% for both small (€250) and large values (€5,000).

When comparing MoneyGram to other specialised currency transfer services, it does not stack up very well at all. While currency services such as TransferWise (review) and CurrencyFair (review) do not take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. Unfortunately, these alternatives can’t always send funds to all corners of the globe and by a variety of methods, which is one of MoneyGram’s primary strengths.

As an example, let’s compare MoneyGram against its competitors when exchanging Euro (EUR) into Australian Dollars (AUD):

As you can see, there are certainly some benefits to using MoneyGram. With its ability to provide payments to hundreds of countries and by a variety of methods, it does have its uses. But it is very unlikely to offer competitive exchange rates when compared to other similar remittance services out there, such as WorldRemit (review) and TransferGo (review).

4. Transfer speed

The speed of MoneyGram’s services vary greatly depending on the method of delivery selected. Transfers initiated via cash pickup and mobile money are completed almost instantly. While bank transfers usually take between 1 – 3 business days to be fulfilled.

5. Key features

What are the key features of MoneyGram’s online platform? Let’s take a look at the various payment services offered by the company.

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the MoneyGram website, and with a couple of clicks, a transfer can be arranged. Unfortunately, at this stage, this is the only type of payment that MoneyGram can facilitate. As a result, anything resembling the more advanced features offered by other currency transfer services, such as scheduled payments or conditional orders, are not possible.

5.2. Flexible delivery options

MoneyGram’s strengths lay in its ability to transfer funds in a variety of customer-friendly ways. In this spirit, the company has established relationships with over 350,000 cash pickup locations in 200 countries. This large network of retail agents allow in-person transactions and provide flexibility into areas of the world with limited banking infrastructure.

6. Customer service

In addition to MoneyGram’s headquarters in the United States, the company has many international offices; so many in fact, that there are almost too many to list. These administrative hubs are supported by the company’s network of retail agents, which consist predominately of convenience stores and corner shops. As outlined earlier, there are over 350,000 of these located around the world. Their locations can be found on MoneyGram’s website. For transactions occurring online, the company’s customer service team can be contacted by phone or email.

+61 2 8037 5390 (AU)
+44 800 026 0535 (UK)
+1 800 666 3947 (US)

In my experience, I found the MoneyGram customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is MoneyGram safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As MoneyGram is headquartered in United States, the company is regulated by FinCEN. MoneyGram’s international subsidiaries are also regulated by the relevant authorities in the jurisdiction of their operations, such as the FCA in the United Kingdom.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of MoneyGram’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should MoneyGram encounter financial difficulties.

7.3. Website security

The MoneyGram website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust MoneyGram? Let’s take a look at look at some of the key factors which affect the company’s reputation.

8.1. Trustpilot

As of publication, MoneyGram has received 259 reviews on Trustpilot with an average rating of 1 out of 5 stars; representing a positive experience in only 4 percent of interactions with its customers. I can’t ever remember seeing such a poor score.

Here are some of my observations on the feedback posted:

8.2. Social media

Upon viewing the Facebook and Twitter feeds of MoneyGram, we can see a range of varied interactions between the company and its customers. As MoneyGram is very much a consumer level operation, they respond to many queries each day. Their responses appear to be prompt and helpful, but rather bland. To be fair, it really looks like their social media team does receive all sorts of strange messages, so they do reasonably well to keep on top of everything.

Hello Linda. Sorry to hear about the trouble you experienced. The system is now available. If you need to go to a MoneyGram location we suggest to call the agent prior to visiting their location to confirm their services are operational. You can fin… https://t.co/x9o8nccHf4

— MoneyGram (@MoneyGram) July 15, 2018

In addition to answering customer queries, MoneyGram is quite active in posting general cultural news, which is aimed at engaging their followers.

8.3. Mainstream media

As for the mainstream media, MoneyGram is often in the news. As a large publicly listed company, it receives quite a bit of attention due to solely to this fact. From time to time there is speculation on its merger and acquisition with other companies; such as the rumored merger with Western Union in 2012 and the attempted purchase by Ant Financial in 2018. It also received quite a bit of bad press due to customers complaining about what are perceived to be excessive fees.

MoneyGram and Ripple are teaming up. Business Insider

MoneyGram fined $100 million for wire fraud. Krebs on Security

“Rip-off” money transfer companies under fire in the U.K. The Guardian

9. User experience

The MoneyGram website has been designed thoughtfully, with special attention being paid to user experience and simplicity. In addition to its online platform, MoneyGram has also developed mobile apps for both Apple and Android devices.

9.1. Signing up

The sign-up process is relatively straight-forward. You begin by entering your email and a password, before providing essential contact information such as name, address and phone number. The entire process takes around 5 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so MoneyGram can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does MoneyGram work?

To familiarise you with the MoneyGram service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along below.

Step 1

Visit moneygram.com and log in. Once you have entered the MoneyGram website, you are greeted with a minimal interface. To begin a transaction, click Send to Someone New

Step 2

Enter the name of your intended recipient and the country of their location. Then you can select the method in which the funds will be delivered. These will vary depending on your recipient’s location. In my example, only cash pickup is available.

Step 3

Enter the value of your transfer, in either the sending or receiving currency denomination. Then select the method of payment. In my example, only debit or credit card is available. Next to the listed payment method, the applicable transfer fee is displayed. This will increase as the value of the transfer increases.

Step 4

As I have selected debit/credit card, now is the time to enter the specific payment details, including the billing address attached to the card.

MoneyGram squeezes in a short warning in attempt to protect you from fraud. Click Almost Done.

A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Send Now.

Once your transaction is confirmed, it is time for MoneyGram to get to work and begin processing your payment.

Step 5

Once your funds have been received by MooneyGram, they will finalise the transfer to your recipient. You can track your transfer online or with their mobile app. Additionally, throughout the process, you will be provided with email updates as the payment moves within the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the MoneyGram online platform was simple to use and I was satisfied with the updates provided to me along the way. The entire process took only a few minutes, and I was able to pick up my cash from a local convenience store later the same day.

10. Conclusion and final thoughts

If you have simple requirements, MoneyGram can be a very useful service. The almost instantaneous delivery of funds all over the world certainly has its benefits. However, with this flexibility, the service also attracts large transfer fees and poor exchange rates. Although I found the service pleasant overall, it seems as if the pricing is aimed at gouging those who don’t know any better.

As an online platform, MoneyGram is really quite limited. Low transfer limits and no advanced functionality whatsover, make this a suitable for only the bare basics. Those wanting a modern service may liek to take a look at WorldRemit or TransferGo, who both offer similar service with much better rates. If you wish to take the next step, TranferWise probably offers the best rates in the market, but not all locations are available. If you’re stuck for time MoneyGram will get the job done. If you can look around a little more, you might be able to find something much cheaper.

Our rating: 2 stars

Currencies:

48

Transfer speed:

2 – 4 days

Trustpilot score:

4 stars

Our score:

4 stars

Website:

xendpay.com

Xendpay is a cheap online platform for international money transfers, despite being a little simplistic.

Xendpay was founded on a belief that international payments could be a medium for social change. It was the first service to bring the “pay what you want” concept to currency exchange. This initiative was championed by the company’s founders, who themselves had benefited from immigrating to the United Kingdom at a young age.

As the online remittance platform of an already established foreign exchange dealer, Xendpay uses its parent’s banking infrastructure to provide low cost services to those who need them. The result is a service that targets the residents of the UK and Europe, sending money home to friends and family abroad.

The motives behind Xendpay’s service are obviously well intentioned, but does its business model affect the quality of service delivered? To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Xendpay.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Xendpay was established in 2011, as an off-shoot of an existing foreign exchange business, RationalFX (review). Xendpay was the company’s attempt to develop an online platform specifically for low and medium-value transfers. It brought to the market the social idea of paying what you want for using the service, which garnered a lot of press coverage at the time.

RationalFX itself was founded in 2005 by Rjesh Agrawal and Paresh Davdra in an apartment just outside of London. By 2011, the pair had begun to experience some success, with the company having completed over £1 billion worth of transfers on behalf of its customers. The founding of Xendpay was natural progression for the company, which had already benefited from Paresh’s experience in his father’s foreign exchange brokerage shortly after graduating university.

Xendpay is currently led by co-founder, Paresh, who acts as CEO. He works closely with Chris Humphrey, who is CEO of RationalFX. I suspect that Xendpay receives significant support from the the core personnel of RationalFX, such as Renzo Giannini, who is Head of Compliance, and Richard Spencer, who is Head of Product & Marketing. The managerial team is rounded out with Head of Operations, Simon Allen, and Head of Technology, Giuseppe Naccarato.

1.1. Company details

2. Supported currencies

Xendpay supports the exchange of 48 currencies, leading to a total servicing of approximately 173 countries. For the most part, the company facilitates its transfers using the SWIFT banking network, which allows it to deliver funds to all corners of the globe. The downside to this network is that there may be charges incurred by the recipient, of which Xendpay has no control of.

The Xendpay online platform has no minimum or maximum transfer value. This is an exciting feature for high-net-worth and commercial customers, who may have run into the limitations of other online services in the past.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Xendpay typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate) and the exchange rate offered to the customer.

When comparing the pricing of Xendpay against traditional banks, the company fares pretty well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Xendpay, on the other hand, charges a small flat fee of only £X. The exchange rates are also much more competitive, averaging between 0.77% of the total amount transferred for small values (£1,000), and 0.52% for larger values (£100,000).

When comparing Xendpay to other specialised currency transfer services, it stacks up very well. While companies such as TransferWise (review) and CurrencyFair (review) don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. Even though Xendpay doesn’t provide the mid-market rate, its rates are not too far away, especially for larger values.

As an example, let’s compare Xendpay against its competitors when exchanging British Pounds (GBP) into Australian Dollars (AUD):

As you can see, there are certainly many benefits to using Xendpay. With its ability to provide payments to hundreds of countries, it does provide excellent value and is very close to the market leaders. In addition, it should be noted that any transfer conducted via Swift can possibly incur additional hidden charges by correspondent banks; the amount depending on the amount of the transfer and the recipient’s bank.

4. Transfer speed

The transfer speed of an average transfer with Xendpay depends on a couple of things, including the currency you’re sending, the size of the transaction, and the banks involved. For the majority of currency pairings, you should allow between 2 – 4 days for the transferred funds to reach the recipient’s account.

5. Key features

What are the key features of Xendpay’s online platform? Let’s take a look at the various payment services offered by the company.

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Xendpay website or app and with a couple of clicks a transfer can be arranged. Unfortunately, at this stage, this is the only type of payment that Xendpay can facilitate. As a result, anything resembling the more advanced features offered by other currency transfer services, such as scheduled payments or conditional orders, are not possible.

6. Customer service

The headquarters of Xendpay and RationalFX are located in the United Kingdom. Their office can be contacted by phone or email.

+44 20 7220 8158 (UK)
customer.services@xendpay.com

In my experience, I found the Xendpay customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is Xendpay safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As Xendpay’s parent organisation, RationalFX, is headquartered in the United Kingdom, the company is regulated by the Financial Conduct Authority (FCA) and licensed as an Electronic Money Institution under reference 507958.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of Xendpay’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Xendpay encounter financial difficulties.

7.3. Website security

The Xendpay website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust Xendpay? Let’s take a look at look at some of the key factors which affect the company’s reputation.

8.1. Trustpilot

As of publication, Xendpay has received 4,258 reviews on Trustpilot with an average rating of 4 out of 5 stars; representing a positive experience in 85 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

8.2. Social media

Upon viewing the Facebook and Twitter feeds of Xendpay, we can see that its staff usually reply the same day to any query raised on any of these platforms. It appears that the company’s customer service team receive quite a few inquiries through these platforms, which is probably due to their high transaction volume.

Hello Vishnu, I have asked customer support for details and will get back to you via DM as soon as I can.

— xendpay (@xendpay) April 20, 2018

The remainder of Xendpay’s posts revolve around keeping its customers up to date with the company’s own news, rather than providing specific commentary on foreign exchange markets.

8.3. Mainstream media

As for the mainstream media, their reporting on Xendpay has generally been positive, and provides the company with a handful of vanity pieces. Most either highlight Xendpay’s claim that they are the first currency transfer service to make paying a fee optional, or are professional profiles on the company’s two founders.

Can ‘pay what you want’ work in the cash transfer market? Forbes

The ‘working class boy’ who built a £1bn business. BBC

How a strong business culture can create a huge business opportunity. PwC

9. User experience

The Xendpay website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is available in 5 languages; English, French, German, Polish, and Spanish. In addition to its online platform, Xendpay has also developed a mobile app for Apple devices.

9.1. Signing up

The sign-up process is relatively straight-forward. You begin by entering your email, a password and electing the type of account that you would like, before providing essential contact information such as name, address and phone number. The entire process takes around 10 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so Xendpay can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does Xendpay work?

To familiarise you with the Xendpay service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along below.

Step 1

Visit xendpay.com and log in. Once you have entered the RationalFX website, you are greeted with a basic dashboard. To begin a transaction, click Send Money.

Step 2

Select the originating and destination countries, as well as the amount that you wish to send. You can elect this amount in either currency denomination. The transfer fee will be added on top of your designated amount. You can choose to amend this figure or remove it entirely.

Step 3

Add the information of your intended recipient, including their bank details.

An additional form is squeezed into the process, asking for the purpose of your payment and the source of your funds.

Now is the time to elect your method of payment. If you wish to pay by debit or credit card, this is the fastest way of transferring funds to Xendpay. I chose to proceed with bank transfer.

A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Finalise Transaction.

Step 4

Once your transaction is confirmed, you are provided with instructions to proceed with your part of the payment. Before Xendpay can complete the transfer, you will first need to send your funds to their local account from your country of origin.

Step 5

Once your funds have been received by Xendpay, they will finalise the transfer to your recipient. You can track your transfer online and you will be provided with email updates as the payment moves through the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the Xendpay online platform was simple to use and I was satisfied with the updates provided to me along the way. The entire process took 3 business days, and the funds arrived into my recipient’s account as requested.

10. Conclusion and final thoughts

Xendpay’s “pay what you want” attitude may seem like a gimmick at first glance. But even if you choose to pay their suggested fee, the overall cost of the service is very competitive and not far off market leading services such as TransferWise and CurrencyFair. While delivering funds via SWIFT has its downsides, it does provide a broad reach of payment destinations.

For what the service sets out to do it does well; cheap payments to all corners of the world. But unfortuantely, id doesn’t do much more than that. There are no advanced foreign exchange tools whatsoever, such as those offered by HiFX (review) or RationalFX. And there are no flexible delivery options, such as those offered by WorldRemit (review) and TransferGo (review). But other than that, if you are happy with very simple product that get the job done cheaply, Xendpay might be the service for you.

Our rating: 4 stars

Currencies:

48

Transfer speed:

2 – 4 days

Trustpilot score:

4 stars

Our score:

3 stars

Website:

rationalfx.com

RationalFX provides a broad selection of currencies, competitive rates, and helpful customer service, despite its online platform lacking advanced features.

RationalFX has a inspirational founding story; two young entrepreneurs in London looking for a way bring foreign exchange in the digital era. The best part of the story is that 15 years and 100,000 customers later, the company is going stronger than ever.

From humble beginnings, the company has since expanded into three divisions to cover the diverse requirements of its customers. From low-value everyday remittances to discreet large-value transfers, RationalFX is a truly boutique firm for international payments.

With a diverse selection of currencies and hundreds of payment destinations available, the company is well positioned for success in UK and European market. To learn more about their capability and to see if their service is right for you, read on for my in-depth review of RationalFX.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

RationalFX was established in 2005 by two founders, Rjesh Agrawal and Paresh Davdra. They started out with just a laptop and few thousand pounds in an apartment just outside of London. Despite their modest position, they both saw an opportunity for providing an internet based foreign exchange service. They were aided by the fact that Paresh’s father had been involved in the industry for many years, and that Paresh had obtained initial experience as a dealer at his father’s firm.

Since the company’s initial founding, RationalFX has processed over £10 billion in payments on behalf of its customers. In 2014, RationalFX Premier was established to focus on providing a white glove service for its high-net worth private clients. Then in 2015 the company went the other way, founding Xendpay (review), an online platform specifically focused on low-value remittances. Xendpay’s point of difference was its low fee model, allowing its customers to “pay what you want” for using the service.

For many years RationalFX was led somewhat jointly by its founders, Rjesh and Paresh. It appears that they are both still involved with the company varying degrees; Rjesh in non-executive capacity as Chairman, and Paresh in a executive capacity. The responsibility for day to day operations has been handed to Chris Humphrey, who is CEO. Chris, who spent a decade with OFX (review), is supported by Renzo Giannini, who is Head of Compliance. The executive team is rounded out with Head of Operations, Simon Allen, and Head of Technology, Giuseppe Naccarato.

1.1. Company details

2. Supported currencies

RationalFX supports the exchange of 48 currencies, leading to a total servicing of approximately 173 countries. For the most part, the company facilitates its transfers using the SWIFT banking network, which allows it to deliver funds to all corners of the globe. The downside to this network is that there may be charges incurred by the recipient, of which RationalFX has no control of.

The RationalFX online platform has no minimum or maximum transfer value.  This is an exciting feature for high-net-worth and commercial customers, who may have run into the limitations of other online currency transfer services in the past.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like RationalFX typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of RationalFX against traditional banks, the company fares pretty well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. RationalFX, on the other hand, charges a small flat fee of £4. The exchange rates are also much more competitive, averaging between 1.42% of the total amount transferred for small values (£1,000), and 1.03% for larger values (£100,000).

When comparing RationalFX to other specialised currency transfer services, it doesn’t fare too badly. While companies such as TransferWise (review) and CurrencyFair (review) don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. Although RationalFX could tighten up their rates a little, they remain in the ballpark of a competitive service.

As an example, let’s compare RationalFX against its competitors when exchanging British Pounds (GBP) into Australian Dollars (AUD):

As you can see, there are certainly many benefits to using RationalFX. With its ability to provide payments to hundreds of countries, it does provide good value but may not always be the cheapest option. In addition, it should be noted that any transfer conducted via SWIFT can possibly incur additional hidden charges by correspondent banks; the amount depending on the amount of the transfer and the recipient’s bank.

4. Transfer speed

The transfer speed of an average transfer with RationalFX depends on a couple of things, including the currency you’re sending, the size of the transaction, and the banks involved. For the majority of currency pairings, you should allow between 2 – 4 days for the transferred funds to reach the recipient’s account.

5. Key features

What are the key features of RationalFX’s online platform? Let’s take a look at the various payment services offered by the company.

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the RationalFX website and with a couple of clicks a transfer can be arranged.

5.2. Regular payments

If you need to transfer funds on a regular basis, a single payment can be scheduled as a recurring transaction. This allows any future payments to be direct debited automatically, providing a convenient solution to make better use of your time.

5.3. Forward contracts

If you would like to lock in an exchange rate but aren’t quite ready to transfer, you can use a forward exchange contract. This allows you to confirm a specific rate for up to 12 months in the future, protecting you from unfavorable rate movements.

5.4. Market orders

Market orders allow you to set a target exchange rate that you would like to transact at in the near future. If and when your target rate is reached, RationalFX will notify you via email so you can initiate a transfer at your convenience.

6. Customer service

In addition to the RationalFX headquarters in the United Kingdom, the company also has regional offices in France and Spain. Their customer service team can be contacted by phone or email.

+44 20 7220 8181 (UK)
online.services@rationalfx.com

In my experience, I found the RationalFX customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is RationalFX safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As RationalFX is headquartered in the United Kingdom, the company is regulated by the Financial Conduct Authority (FCA) and is licensed as an Electronic Money Institution under reference 507958.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of RationalFX’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should RationalFX encounter financial difficulties.

7.3. Website security

The RationalFX website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust RationalFX? Let’s take a look at look at some of the key factors which affect the company’s reputation.

8.1. Trustpilot

As of publication, RationalFX has received 610 reviews on Trustpilot with an average rating of 4 out of 5 stars; representing a positive experience in 85 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

8.2. Social media

Upon viewing the Facebook and Twitter feeds of RationalFX, we do not see many interactions between the company and its customers. It’s hard to tell why exactly this is the case, however, I would suggest that customers may prefer to deal directly with RationalFX’s customer support representatives. Aside from that, the company’s social media accounts provide a regular selection of general interest news and foreign exchange related content.

8.3. Mainstream media

As for the mainstream media, there is not too much coverage on RationalFX other than the occasional vanity piece on the success story of company’s two founders.

The ‘working class boy’ who built a £1bn business. BBC

Business Leader Interview: Paresh Davdra CEO, RationalFX. Enterprise Times

How a laptop and a phone changed the world: RationalFX. growthbusiness.co.uk

9. User experience

The RationalFX website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is available in 5 languages; English, French, German, Polish, and Spanish.

9.1. Signing up

The sign-up process is relatively straight-forward. You begin by entering your email, a password and electing the type of account that you would like, before providing essential contact information such as name, address and phone number. The entire process takes around 10 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so RationalFX can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does RationalFX work?

To familiarise you with the RationalFX service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along below.

Step 1

Visit rationalfx.com and log in. Once you have entered the RationalFX website, you are greeted with a basic dashboard. To begin a transaction, click Send Money.

Step 2

Select the originating and destination countries, as well as the amount that you wish to send. You can elect this amount in either currency denomination. The transfer fee will be added on top of your designated amount.

Step 3

Add the information of your intended recipient, including their bank details.

An additional menu is squeezed into the process, asking for the purpose of your payment and the source of your funds.

Now is the time to elect your method of payment. If you wish to pay by debit or credit card, this is the fastest way of transferring funds to RationalFX. I chose to proceed with bank transfer.

A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Finalise Transaction.

Step 4

Once your transaction is confirmed, you are provided with instructions to proceed with your part of the payment. Before RationalFX can complete the transfer, you will first need to send your funds to their local account from your country of origin.

Step 5

Once your funds have been received by RationalFX, they will finalise the transfer to your recipient. You can track your transfer online and you will be provided with email updates as the payment moves through the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the RationalFX online platform was simple to use and I was satisfied with the updates provided to me along the way. The entire process took 3 business days, and the funds arrived into my recipient’s account as requested.

10. Conclusion and final thoughts

RationalFX provides a professional and effective currency exchange service. Their online platform is easy to use and suitable for completing single transfers of almost any amount. While the company does offer advanced services such as regular payments and forward contracts, you will need to arrange these capabilities over the phone. If you’d prefer to manage these online, you might need to look at alternatives such as HiFX (review) and WorldFirst (review).

Despite claiming to be a technology first operation, RationalFX still relies on delivery funds via the SWIFT network. While their exchange rates are generally competitive, they are still are not quite in the same league as market leaders, TransferWise and CurrencyFair. That being said, RationalFX provides a valuable service overall. And despite the limitations of its online platform, it is a solid performer for both personal and commercial transfers.

Our rating: 3 stars

Currencies:

60

Transfer speed:

2 – 4 days

Trustpilot score:

5 stars

Our score:

3 stars

Website:

currencyonline.com

Currency Online developed the technology that its parent company, HiFX, relies on to facilitate its online operations. It offers services that are very similar to its better-known relative, but its rates aren’t quite as competitive.

Currency Online has been in business for over 30 years, which is not so typical for a money transfer company. It has evolved over this time to become quite a popular service, particularly for customers located in New Zealand.

In recent times, the technology developed by Currency Online has become a core asset of the company. Its online platform facilitates fast and efficient international payment solutions to many corners of the globe, and is so desirable, it actually underpins the operation of two additional companies in the market.

With the added support of its parent organisation, Currency Online is in a good position to provide valuable foreign exchange services for some time to come. To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Currency Online.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Currency Online was founded in 1986 under its original name, Elldridge Lynch & Associates. The company was established primarily to service the foreign exchange needs of the automotive industry in New Zealand. Operating from an office in Christchurch, Currency Online remained there until the earthquakes of 2011, whereby the company relocated to Auckland. In addition to their primary website, Currency Online also operates moneytransfer.co.nz.

In 2008, Currency Online was acquired by HiFX (review), who was motivated to purchase to the company in order to gain access to the underlying technology of their online platform. Then in 2014, HiFX (and their interest in Currency Online) was acquired by Euronet Worldwide for £145 million. Since the acquisition, its new owners have indicated that the HiFX business will eventually be integrated under the XE Money Transfer (review) and Ria Money Transfer (review) brands, which they also own. Whether or not Currency Online will also be integrated, is unclear at this stage.

Currency Online is currently led by Nathan Cheeseman as Managing Director, with Dan Bell providing executive support as Sales & Service Director. Alex Hill has been appointed Head of Dealing and Rory Devin is Head of Private Client Dealing. As far as I can tell, HiFX’s Australasian office is currently overseen by Brett Finnigan, while Simon Griffin is CEO of HiFX’s United Kingdom operations. Michael J. Brown is CEO of Currency Online’s ultimate owner, Euronet.

1.1. Company details

2. Supported currencies

Currency Online supports the transfer of 60 currencies, leading to a total servicing of approximately 170 countries. For the most part, the company facilitates its transfers using the Swift banking network, which provides it with the ability to deliver funds to all corners of the globe. The downside to this network is that there are often charges incurred by the recipient, of which Currency Online has no control of.

Currency Online has a minimum transfer value of $50. While the company is equipped to complete transfers of almost any size, its online platform is limited to a maximum transfer amount of $1,000,000. For any values larger than this, the customer service staff of Currency Online are more than happy to assist you with getting you what you need.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Currency Online typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of Currency Online against traditional banks, the company fares pretty well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Currency Online, on the other hand, may charge a flat fee of up to $12 for transfers up to $10,000 conducted online. Transfers greater than $10,000 do not incur a fee. A table of fees can be viewed here. The exchange rates are much more competitive than traditional banks, averaging between 2.74% of the total amount transferred for small values ($1,000) and 0.73% for larger values ($100,000).

When comparing Currency Online to other specialised currency transfer services, it also fares reasonably well. While currency services such as TransferWise (review) and CurrencyFair (review) don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. While Currency Online’s rates aren’t quite as competitive, it does have a large selection of currencies and offers more advanced tools than many consumer-focused services.

As an example, let’s compare Currency Online against its competitors when transferring Australian Dollars (AUD) into Euro (EUR):

As you can see, Currency Online is quite a solid performer, especially for higher transfer values – however, it may not always be the cheapest option. Although, it should be noted that any transfer conducted via Swift will likely incur additional hidden charges by correspondent banks; the exact cost depending on the amount of the transfer and the recipient’s bank.

4. Transfer speed

The transfer speed of an average transfer with Currency Online depends on a couple of things, including the currency you’re sending, the bank used, and the size of the transaction. For the majority of currency pairings, you should allow between 2 – 4 days for the transferred funds to reach the recipient’s account.

5. Key features

What are the key features of Currency Online’s online platform? Let’s take a look at the various payment services offered by the company.

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Currency Online website, and with a couple of clicks, a transfer can be arranged.

5.2. Regular payments

If you need to transfer funds on a regular basis, a single payment can be scheduled as a regular recurring transaction. This allows any future payments to be direct debited automatically, providing a convenient solution to make better use of your time.

5.3. Forward contracts

If you would like to lock in an exchange rate but aren’t quite ready to transfer, you can use a forward exchange contract. This allows you to confirm a specific rate for up to 12 months in the future, protecting you from unfavorable rate movements. The minimum transfer amount for this service is $1,000.

5.4. Limit orders

Limit orders allow you to set a target exchange rate that you would like to transact at in the near future. If and when your target rate is reached, Currency Online will initiate the transfer of funds immediately.

6. Customer service

Currency Online’s headquarters in New Zealand. Their office can be contacted by phone or email.

+61 1800 150 689 (AU)
+64 9 306 3809 (NZ)
+44 800 085 8589 (UK)
info@currencyonline.com

In my experience, I found the Currency Online customer service staff to be friendly and helpful, and my queries by email and phone have been answered in a prompt and professional manner. However, I have noticed reports from some overseas customers complaining about the challenges of dealing with customer service located in New Zealand.

7. Security and regulation

Is Currency Online safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As Currency Online’s parent company, HiFX, has an office in Australia, the company is regulated by ASIC under Australian Financial Services Licence number 240914. The subsidiaries of HiFX are also regulated by the relevant authorities in the jurisdiction of their international operations, such as FCA in the United Kingdom and FinTRAC in Canada.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of Currency Online’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Currency Online encounter financial difficulties.

7.3. Website security

The Currency Online website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Is Currency Online safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

8.1. Trustpilot

As of publication, Currency Online has received 2,320 reviews on Trustpilot with an average rating of 5 out of 5 stars; representing a positive experience in 98 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

8.2. Social media

Upon viewing the Facebook and Twitter feeds of Currency Online, there is very little activity to report. Despite the Facebook page having over 5,000 likes, there is only sporadic communication between the company and its customers; most of which occurring prior to 2013. On the Twitter side of things, once again, there is almost no interaction to speak of, except for the occasional market update presented on either their primary or secondary account.

Cannot recommend @CurrencyInfo_ enough for affordable money transfers between international accounts! #NotSponsored Just an honest tip ^.^

— Jess Blaikie (@JessBlaikie) October 25, 2014

8.3. Mainstream media

Following on from Currency Online’s social media presence, there is not much mention of the company in the mainstream media either. Aside from the occasicanal market update provided by the Currency Online’s parent organsiation, Euronet, I was not able to find a single reference of the company in a large general purpose publication. I don’t think that this lack of social proof should be concerning, rather it is most likely just a consequence of the company focusing on local relationships instead of broad-reaching marketing campaigns. Instead, here are some reports on HiFX, which operates Currency Online’s payment infranstructure:

How to protect your assets from the eurozone turmoil. The Guardian

HiFX is best for large sums. The Guardian

If we don’t add value to the client, they don’t deal with us. We have to significantly beat the bank to make it worth their while. BBC

9. User experience

The Currency Online website has been designed thoughtfully, with special attention being paid to user experience and functionality. The technology stack is the same as used by Currency Online, so any users familiar with that system will be right at home here. The website can be viewed in 2 languages, English and Japanese.

9.1. Signing up

The sign-up process is relatively straight-forward, taking only a couple of minutes longer than a typical consumer grade service. You begin by selecting your country and entering your email, before providing essential contact information such as name, address and phone number. The entire process takes around 10 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so Currency Online can verify your account. I was required to provide my Drivers Licence or Passport number, and then later a copy of my Passport.

9.2. How does Currency Online work?

To familiarise you with the Currency Online service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along.

Step 1

Visit currencyonline.com and log in. Once you have entered the Currency Online online platform, you are greeted with an informative interface. The dashboard allows you to navigate to and view various details about your account.

To begin a transfer, click New Transaction. Alternatively, you can enter some basic information into the quick quote widget and click New Transfer.

Step 2

To formalise the exchange rate for your quote, select the currencies involved and the amount you wish to transfer in either the sending or receiving currency denomination. The rate offered will depend on the size of your transfer. Larger transfers will generally be offered better rates. Once you are happy with the quote presented click Continue.

Step 3

Select the destination country and add the bank details of your intended recipient, including a reason for your transfer.

Select the method by which you intend to pay your funds to Currency Online. The company can often accept funds by bank transfer, debit or credit card. However, in my example, only bank transfer was available.

The specific terms of your quote are clearly outlined, including the exchange rate and fees applicable. Once you are sure you want to finalise, click Confirm Transaction Now.

Step 4

Once your transaction is confirmed, you are provided with a PDF Confirmation and instructions to proceed with your part of the payment to Currency Online’s local account.

Step 5

Once your funds have been received by Currency Online, they will process the transfer to your recipient. You can track your transfer online and you will also be provided with email updates as the payment moves through the system.

All done!

Finally, once the transfer has been completed its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the Currency Online platform was simple to use and I was satisfied with the instructions provided to me along the way. The entire process took 3 business days and the funds arrived into my recipient account as requested.

10. Conclusion and final thoughts

Currency Online developed the technology that supports the internet presence of HiFX and XE Money Transfer, in addition to its own services.  As a result, the company offers a similar product suite, albeit with exchange rates that are not quite as competitive. Currency Online does a reasonable of competing with other full-service brokers such as OFX and WorldFirst, however, its customer service ability is limited by its New Zealand location.

While the company uses the Swift network to increase the reach of its deliverable countries, this does have an obvious downside; in that, some transactions may incur unexpected transaction costs, and that the full amount of the transfer will not always be received by the recipient. Nevertheless, in my experience I found Currency Online to provide an effective service at reasonable rates, but if you can deal directly with HiFX you might be slightly better off.

Our score: 3 stars

Currencies:

43

Transfer speed:

2 – 4 days

Trustpilot score:

2 stars

Our score:

4 stars

Website:

worldfirst.com

WorldFirst provides a reliable online platform for international payments. Competitive rates, advanced tools and no upper limit for transfers make this a service worth considering.

In the past decade, WorldFirst has incurred an incredible amount of growth. From its humble start-up beginnings in a house basement, the company has expanded to over 600 employees in 7 countries across the world, including its headquarters in the United Kingdom.

With the simple goal of making foreign exchange simple and fuss-free, WorldFirst has certainly proved popular with its customers to date. Since its launch in 2004, the company has helped over 290,000 individuals and small businesses transfer over £60 billion, which is no small feat, I’m sure you’d agree.

The company’s online platform spans 43 currencies, which is an enticing offer for those who regularly transact across international borders. To learn more about their capability, and to see if their service is right for you, read on for my in-depth review of WorldFirst.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

WorldFirst was established in 2004 by Jonathan Quin and Nick Robinson, two foreign exchange colleagues from Citibank. From the basement of a house in South London, the pair had an ambition to make moving money cheaper and easier. Less than a month after founding, WorldFirst’s first customer was acquired and a new business was born.

In the years since the company has expanded significantly to establish a total of 7 offices around the world. And, as of the end of 2016, now transfers over £8.5 billion on behalf of its customers annually. WorldFirst has also won a number of awards over this time, including The Sunday Times Best Companies to Work For in 2013 and The Queen’s Award for International Trade in 2016.

Since the company’s inception, co-founder Jonathan has led WorldFirst as CEO and is currently supported by Kerry Tremble as Chief Financial Officer and Tim Rudman as Chief Operating Officer. Each of these senior executives has extensive experience in banking and financial services from firms such as Royal Bank of Scotland, Lloyds Banking Group, and KMPG. They are joined by Wendy Glasgow, serving as Chief Compliance Officer.

1.1 Company details

2. Supported currencies

WorldFirst supports the transfer of 43 currencies, leading to a total servicing of approximately 137 countries. To support this transaction ability, the company has established a network of bank accounts worldwide using a combination of international banking partners, as well its own local subsidiaries. This allows WorldFirst to facilitate trades in both directions of many currency pairings.

WorldFirst has a minimum transfer value of £1,000, which is relatively high for a service of its type. As for maximum transfer values, there aren’t any. The WorldFirst platform has been developed to handle large payments of almost any amount. This is an exciting feature for high-net-worth and commercial customers, who may run into limitations imposed by other online currency transfer services.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like WorldFirst typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of WorldFirst against traditional banks, the company fares extremely well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. WorldFirst, on the other hand, does not charge a transaction fee, and the exchange rates are much more competitive than traditional banks; averaging between 1.51% of the total amount transferred for small values (€1,000) and 0.82% for larger values (€100,000).

When comparing WorldFirst to other specialised currency transfer services, it stands up quite well, especially for larger amounts. While currency services such as TransferWise and CurrencyFair don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. While WorldFirst’s rates aren’t quite as competitive, it does have a large selection of currencies and an ability to facilitate higher transfer values than many consumer-focused services.

As a case study, let’s compare WorldFirst against its competitors when transferring Euro (EUR) into Australian Dollars (AUD):

As you can see, there are certainly many benefits to using WorldFirst. With its ability to provide payments to hundreds of countries, it does provide excellent value, but may not always be the cheapest option. In addition, it should be noted that any transfer conducted via Swift can possibly incur additional hidden charges by correspondent banks; the amount depending on the amount of the transfer and the recipient’s bank.

4. Transfer speed

The speed of an average transfer with WorldFirst depends on a couple of things, including the currency you’re sending, the size of the transaction, and the bank used. For the majority of currency pairings, you will need to allow between 2 – 4 days for the transferred funds to reach the recipient’s account.

Transfers involving more popular currency pairings may be completed even quicker. For example, transactions between EUR, GBP and USD are usually completed same-day; meaning that deposited funds should arrive in your recipient’s account the following business day.

5. Key features

What are the key features of WorldFirst’s online platform?

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the WorldFirst website or app, and with a couple of clicks, a transfer can be arranged.

5.2. Regular payments

If you need to transfer funds on a regular basis, a single payment can be scheduled as a regular recurring transaction. This allows any future payments to be direct debited automatically, providing a convenient solution to make better use of your time.

5.3. Forward contracts

If you would like to lock in an exchange rate but aren’t quite ready to transfer, you can use a forward exchange contract. This allows you to confirm a specific rate for up to 12 months in the future, protecting you from unfavourable rate movements.

5.4. Limit orders

Limit orders allow you to set a target exchange rate that you would like to transact at in the near future. If and when your target rate is reached, WorldFirst will initiate the transfer of funds immediately.

6. Customer service

In addition to the company’s headquarters in the United Kingdom, the company also has regional offices in Australia, Canada, Hong Kong, the Netherlands, Singapore, and the United States. This global footprint allows WorldFirst to provide local customer service during standard business. WorldFirst can be contacted by phone or email.

+44 20 7801 9080 (UK)
+61 2 8298 4900 (AU)
+1 737 226 5240 (US)
enquiries@worldfirst.com

In my experience, I found the customer service staff of WorldFirst to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is WorldFirst safe? Let’s take a look at the various systems and procedures the company adopts to ensure the security of its customers.

7.1. Government regulated

As WorldFirst is headquartered in the United Kingdom, the company is regulated by the Financial Conduct Authority (FCA) and licensed as an Electronic Money Institution under reference 900508. The subsidiaries of WorldFirst are also regulated by the relevant authorities in the jurisdiction of their international operations, such as ASIC in Australia and the FinCEN in the United States.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of WorldFirst’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should WorldFirst encounter financial difficulties.

7.3. Website security

The WorldFirst website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser. Additionally, WorldFirst has implemented a range of security features such as secret questions.

8. Reputation

Can you trust WorldFirst? Let’s take a look at look at the company’s reputation.

8.1. Trustpilot

As of publication, WorldFirst has received 64 reviews on Trustpilot with an average rating of 2 out of 5 stars; representing a positive experience in only 40 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

To be fair, it seems as if much of the negative feedback on Trustpilot is from potential customers, rather than actual customers. It appears that a few people were turned away by WorldFirst for compliance reasons, meaning that they did not complete the registration process or pass the Know Your Customer (KYC) check. This doesn’t necessarily mean there is not any truth to the claims, however, before making a judgement on the basis of these Trustpilot ratings, I would suggest delving deeper into the core issues.

It is worth noting that WorldFirst also collects customer reviews on Feefo, however, I do not suggest on relying on Feefo reviews alone. Whilst Feefo reviews are collected from confirmed customers of the company, in my opinion, their collection is not adequately separated from the influence of the reviewed company itself.

8.2. Social media

Upon viewing the Facebook and Twitter feeds of WorldFirst, we can see that its staff reply within a couple of days to any query raised on any of these platforms. Due to the size of WorldFirst, the social media team is quite active in publishing news and market updates, which could be very useful for those making regular payments.

Hi Marc, I’m so sorry for the inconvenience. We’re looking into this now and someone will get back to you asap. Thanks, Renny

— World First UK (@WorldFirstUK) September 26, 2017

8.3. Mainstream media

As for the mainstream media, WorldFirst does not have too much vanity coverage, as they are already a well-established company. Much of the reporting completed by large media outlets related to the company releasing new features for online sellers, and commentary on foreign exchange markets. They have also won several awards, ranging from strong growth in international markets to being a good place to work.

WorldFirst is one of Europe’s fastest-growing financial technology companies. Financial Times

Winner, Coolest Companies in Finance 2016. JobAdvisor

Sunday Times Fast Track 100, 2017. Fast Track

9. User experience

The WorldFirst website has been designed thoughtfully, with special attention being paid to user experience and functionality. It is available to be viewed in 6 languages, including English, French, Dutch, Japanese, as well as both Mandarin and Cantonese dialects of Chinese. In addition to its online platform, WorldFirst has also developed mobile apps for both Apple and Android devices.

9.1. Signing up

The sign-up process is relatively straight-forward, taking only a couple of minutes longer than a typical consumer grade service. You begin by entering your region name and email, before providing other essential contact information. The entire process takes around 10 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so WorldFirst can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does WorldFirst work?

To familiarise you with the WorldFirst service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along.

Step 1

Visit worldfirst.com and log in. Once you have entered the WorldFirst online platform, you are greeted with an informative interface. The dashboard allows you to navigate to and view various details about your account.

To begin a transfer, click Make a Transfer. Alternatively, you can enter some basic information into the quick quote widget and click Continue.

Step 2

Select the currencies involved and indicate if you intend on making more than one payment.

Enter the amount of the either the originating or the recipient’s currency denomination. If you’re making more than one payment, the details of these transactions can be added a the bottom of the screen.

To continue, advise WorldFirst of the source of your funds, the payment method, and if the funds are coming from a bank account in your own name.

Select the date that you wish for the payment to leave WorldFirst for your recipient, once WorldFirst has received the originating currency in their local account. In this example, I am able to select a date up to 7 days after the transaction is booked. I elect for the funds to be paid as soon as possible and then click Get Exchange Rate to move to the final screen.

The specific terms of the quote are clearly outlined, including the exchange rate and fees applicable. Once you are sure you want to finalise the payment, click Accept Rate & Book Transaction.

Step 4

After your transaction is complete, you are provided with a confirmation and instructions to proceed with your part of the payment to WorldFirst’s local account.

Step 5

Once your funds have been received by WorldFirst in their local account, they will process the transfer to your recipient. You can track your transfer online, and you will also be provided with email updates as the payment moves through the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the WorldFirst online platform was simple to use and I was satisfied with the instructions provided to me along the way. The entire process took 2 business days and the funds arrived into my recipient account as requested.

10. Conclusion and final thoughts

WorldFirst provides a reliable service for cross-border payments. Competitive rates, advance foreign exchange tools, and international offices on many continents, allow the company to provide a consistent service to its customers. It compares reasonably well to full-service brokers such as OFX and TorFX but doesn’t quite match the refined processes of HiFX and the low rates of more consumer-orientated services such as TransferWise and CurrencyFair.

While the company uses the Swift network to increase the reach of its deliverable countries, this does have an obvious downside; in that, some transactions may incur unexpected transaction costs, and that the full amount of the transfer will not always be received by the recipient. Nevertheless, in my experience I found WorldFirst to be an efficient and effective service for sending funds abroad, and its suite of advanced functionality will be of great use to experienced users.

Our score: 4 stars

Currencies:

60

Transfer speed:

2 – 4 days

Trustpilot score:

5 stars

Our score:

4 stars

Website:

xe.com

XE Money Transfer leans on its sister company, HiFX, to deliver a very good currency exchange experience in spite of the inconsistencies that come along with delivering funds via Swift.

XE Money Transfer is not like other companies, in so far as that its original purpose was not to transfer money. XE.com for a long time has been one of the largest developers of foreign exchange tools on the internet. Perhaps it was just a matter of time before they leveraged this position into actual currency exchange?

With XE’s acquisition by Euronet in 2015, XE became part of its parent organisation’s stable of foreign exchange companies, which currently include Ria Money Transfer and HiFX. Since then, XE has began offering its own currency exchange services, thus far piggybacking on the existing payment infrastructure of HiFX.

XE is clearly looking to offer the users of its internet applications a one-stop shop for all things foreign exchange. To learn more about their capability and to see if their service is right for you, read on for my in-depth review of XE Money Transfer.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

XE.com was founded in 1993 by two high school friends, Steven Dengler and Beric Farmer. Originally named Xenon Laboratories, the company’s primary focus was developing internet based currency and foreign exchange tools. Within a few years XE become the world’s most popular currency website, and the company was eventually renamed to its present title in 2001.

Throughout the company’s development it has operated from various offices in Canada. In 2015 XE was acquired by Euronet, a global provider of electronic payment and transaction processing solutions. Euronet, who also owns Ria Money Transfer and HiFX, continues to build its market presence and it appears that these brands will be consolidated to some extent in the near future.

XE’s money transfer division is currently headed up by Simon Griffin as CEO, with Richard Hodgson in the role of Chief Financial Officer. Both gentleman also oversee HiFX’s money transfer business from their UK office. The broader XE website is influenced by the leadership of Ken Taylor and Darren Bruce. While Cecilia Tamez and Jason Judge play important roles as Chief Strategy Officer and Head of Technology respectively.

1.1. Company details

2. Supported currencies

XE supports the transfer of 60 currencies, leading to a total servicing of approximately 170 countries. For the most part, the company facilitates its transfers using the Swift banking network, which provides it with the ability to deliver funds to all corners of the globe. The downside to this network is that there are often charges incurred by the recipient, of which XE has no control of.

XE does not have a minimum transfer value. While the company is equipped to complete transfers of almost any size, its online platform is limited to a maximum transfer amount of £300,000. For any values larger than this, the customer service staff of XE are more than happy to assist you with getting you what you need.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like XE Money Transfer typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of XE against traditional banks, the company fares very well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. XE, on the other hand, does not charge a transaction fee, and the exchange rates are much more competitive; amounting to 0.54% of the total amount transferred for both small ($1,000) and larger values ($100,000).

When comparing XE to other specialised currency transfer services, it preforms very well. While currency services such as TransferWise and CurrencyFair don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. XE aligns quite similarly to these services, and its overall rate of 0.54% places it in the same league as those considered best in class.

As an example, let’s compare XE against its competitors when transferring Australian Dollars (AUD) into Euro (EUR):

As you can see, XE stands out as an excellent performer in terms of the exchange rates offered. Although, it should be noted that any transfer conducted via Swift will likely incur additional hidden charges by correspondent banks; the exact cost depending on the amount of the transfer and the recipient’s bank.

4. Transfer speed

The transfer speed of an average transfer with XE depends on a couple of things, including the currency you’re sending, the bank used, and the size of the transaction. For the majority of currency pairings, you should allow between 2 – 4 days for the transferred funds to reach the recipient’s account.

5. Key features

What are the key features of XE’s online platform? Let’s take a look at the various payment services offered by the company.

5.1. Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the XE website, and with a couple of clicks, a transfer can be arranged.

5.2. Regular payments

If you need to transfer funds on a regular basis, a single payment can be scheduled as a regular recurring transaction. This allows any future payments to be direct debited automatically, providing a convenient solution to make better use of your time.

5.3. Forward contracts

If you would like to lock in an exchange rate but aren’t quite ready to transfer, you can use a forward exchange contract. This allows you to confirm a specific rate for up to 12 months in the future, protecting you from unfavorable rate movements.

5.4. Limit orders

Limit orders allow you to set a target exchange rate that you would like to transact at in the near future. If and when your target rate is reached, XE will initiate the transfer of funds immediately.

6. Customer service

In addition to the XE’s headquarters in the United Kingdom, the company also has regional offices in Australia, Canada, and New Zealand. This global footprint allows XE to provide local customer service during standard business hours during the week. XE can be contacted by phone or email.

1800 875 483 (AU)
+44 1753 441844 (UK)
+1 416 642 6590 (US & CA)
transfers@xe.com

In my experience, I found the XE customer service staff to be friendly and helpful, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is XE safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As XE’s sister company, HiFX, is headquartered in the United Kingdom, the company is regulated by the Financial Conduct Authority (FCA) and licensed as an Electronic Money Institution under reference 462444. The subsidiaries of HiFX are also regulated by the relevant authorities in the jurisdiction of their international operations, such as ASIC in Australia and FinTRAC in Canada.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of XE’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should XE encounter financial difficulties.

7.3. Website security

The XE website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust XE? Let’s take a look at look at the company’s reputation.

8.1. Trustpilot

As of publication, XE has received 1,421 reviews on Trustpilot with an average rating of 5 out of 5 stars; representing a positive experience in 94 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

8.2. Social media

Upon viewing the Facebook and Twitter feeds of XE, we can see a range of varied interactions between the company’s customer service staff and its customers. As the XE website consists of a combination of currency tools as well as its money transfer service, we find a broad selection of queries. In addition to some standard questions about the money transfer process, the XE staff also deal with some pretty strange requests from the general public. All in all, it appears that they do their best to respond when required, usually doing so the same day.

Hi Charlotte, we always recommend allowing up to four working days for the money to arrive as it can sometimes take the receiving bank a couple of days to clear the funds. However, payments from GBP to EUR will normally clear into the account by the next working day.

— XE.com (@xe) April 16, 2018

8.3. Mainstream media

As for the mainstream media, XE receives a lot of coverage, although not traditionally for their money transfer service. XE currency tools are clearly some of the most popular in the market, therefore, there are hundreds of articles on the web recommending their currency conversion apps and the like. The XE founder, Stephen, has also received significant media attention on his extra curricular activities; most notably when he and his father, Bob, became the first Canadians to circumnavigate the globe in a helicopter.

Taxes From A To Z (2018): X Is For Xe.com. Forbes

XE is the go-to site for currency conversions on the web. The Guardian

Global celebrations as XE Money Transfer goes live. Ria Corporate Blog

9. User experience

The XE website has been designed thoughtfully, with special attention being paid to user experience and functionality. The technology stack is the same as used by HiFX, so any users familiar with that system will be right at home here. The website can to be viewed in 9 languages, including English, Arabic, Chinese, French, Italian, Japanese, Portuguese, Spanish and Swedish.

9.1. Signing up

The sign up process is relatively straight-forward, taking only a couple of minutes longer than a typical consumer grade service. You begin by selecting your country and entering your email, before providing essential contact information such as name, address and phone number. The entire process takes around 10 minutes.

Before you are able to commence transferring funds, you first need to provide proof of identification so XE can verify your account. I was required to provide my Drivers Licence or Passport number, and then later a copy of my Passport.

9.2. How does XE work?

To familiarise you with the XE Money Transfer service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along.

Step 1

Visit xe.com and log in. Once you have entered the XE online platform, you are greeted with an informative interface. The dashboard allows you to navigate to and view various details about your account.

To begin a transfer, click New Transaction. Alternatively, you can enter some basic information into the quick quote widget and click New Transfer.

Step 2

To formalise the exchange rate for your quote, select the currencies involved and the amount you wish to transfer in either the sending or receiving currency denomination. I am not aware that the exchange rate is dynamic in any way, therefore the amount of your transfer will not have an effect on the offered rate. Once you are happy with the quote presented click Continue.

Step 3

Select the destination country and add the bank details of your intended recipient, including a reason for your transfer.

Select the method in which you intend to pay your funds to XE. The company can usually accept funds by bank transfer, debit or credit card. In my example, however, only bank transfer was available.

The specific terms of your quote are clearly outlined, including the exchange rate and fees applicable. Once you are sure you want to finalise, click Confirm Transaction Now.

Step 4

Once your transaction is confirmed, you are provided with a PDF Confirmation and instructions to proceed with your part of the payment to XE’s local account.

Step 5

Once your funds have been received by XE in their local account, they will process the transfer to your recipient. You can track your transfer online, and you will also be provided with email updates as the payment moves through the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the XE online platform was simple to use and I was satisfied with the instructions provided to me along the way. The email updates were informative, and I even received additional updates via text message. The entire process took 2 working days, and the funds arrived into my recipient account as requested.

10. Conclusion and final thoughts

XE Money Transfer provides its currency exchange services by hitching its wagon to its well established sister company, HiFX. By using this existing infrastructure, XE is able to offer excellent exchange rates, a host of advanced features, and helpful customer service for offline transfers. This allows XE to join HiFX as a strong performer among the other full-services brokers in the market, such as OFX, WorldFirst and Currencies Direct.

While the company uses the Swift network to increase the reach of its deliverable countries, this does have an obvious downside; in that some transactions may incur unexpected transaction costs, and that the full amount of the transfer will not always be received by the recipient. Nevertheless, in my experience I found XE Money Transfer to be a efficient and effective service for sending funds abroad, and it is more than suitable for individual and commercial customers alike.

Our score: 4 stars

Currencies:

21

Transfer speed:

1 – 3 days

Trustpilot score:

5 stars

Our score:

5 stars

Website:

orbitremit.com

There is little suprise that OrbitRemit has a cult-like following among its customer base. Excellent rates, low fees and prompt delivery makes the company one of the best money transfer services in its class.

OrbitRemit has taken a customer first approach from day one. Focusing their attention exclusively on the currency transfer requirements of Australian, New Zealand and United Kingdom residents, they have developed a loyal following over the past decade.

The secret to their success seems to be that they do not intend to be all things to all people. A small and nimble team has built the OrbitRemit online platform to deliver millions of dollars worth of payments, spread across thousands of transactions, each and every month.

A low fee model that allows the delivery of funds into over 40 countries around the world is bound to get a lot of people excited. To learn more about their capability, and to see if their service is right for you, read on for my in-depth review of OrbitRemit.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

OrbitRemit was founded in 2009 by Robbie Sampson, David Platt, Tommy Heptinstall, and Paul Robinson. The four founders identified the need for a seamless cross border online money transfer service that would be cheaper, faster and more reliable than what was offered at the time.

The company has since established their product to focus on the markets in Australia, New Zealand, and the United Kingdom. OrbitRemit seems to keep their cards close to their chest, and does not disclose a lot of metrics on their performance. That being said, we can see that the company raised NZ$1 million of seed funding at its initial founding and their website currently receives half a million visits per month.

Robbie Sampson continues to run OrbitRemit as CEO, and is assisted by Geoffrey Hill as General Manager. Richard Freestone heads up compliance related matters as Chief of Finance, Risk and Strategy, while Tommy Heptinstall appears to focus on the company’s UK operations. Paul Kinzett, who has been with the company since 2010, oversees the company’s online platform as Chief Technology Officer.

1.1. Company details

2. Supported currencies

OrbitRemit supports the transfer of 21 currencies, leading to a total servicing of approximately 40 countries. At this point of time, the company only accepts funds from customers in Australia, New Zealand and the United Kingdom; focusing on effectively sending outgoing payments from these locations. In addition to bank transfer, payments to the Philippines and Vietnam can also be made via cash pick up or door to door delivery.

OrbitRemit has a minimum transfer value of $5 or equivalent in your local currency. While the company is equipped to complete transfers of almost any size, its online platform is limited to a maximum transfer amount of £9,000 in the United Kingdom, and $60,000 in Australia and New Zealand. For any values larger than this, the customer service staff of OrbitRemit are more than happy to assist you with getting you what you need.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like OrbitRemit typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of OrbitRemit against traditional banks, the company fares pretty well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. OrbitRemit, on the other hand, charges a small flat fee of only $4. The exchange rates are much more competitive; amounting to approximately 0.43% of the total amount transferred for both small (£500) and large values (£50,000).

When comparing OrbitRemit to other specialised currency transfer services, it stacks up pretty well. While companies such as TransferWise and CurrencyFair don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. Even though OrbitRemit does not advertise the fact that it uses the mid-market rate, it is pretty much on par with those that do.

As an example, let’s compare OrbitRemit against its competitors when transferring Euro (EUR) into Australian Dollars (AUD):

As you can see, OrbitRemit stands out as an exceptional performer in terms of the exchange rates offered. The company also explicitly states that no additional hidden charges by correspondent banks will be incurred, which is excellent news indeed.

4. Transfer speed

The transfer speed of an average transfer with OrbitRemit depends on a couple of things, including the currency you’re sending, the size of the transaction, and the banks involved. For the majority of currency pairings, you should allow between 1 – 3 days for the transferred funds to reach the recipient’s account.

Alternative delivery methods such as cash pick up or door to door delivery may be subject to slightly varied timeframes, depending on the destination. A list of these considerations can be found OrbitRemit’s website.

5. Key features

What are the key features of OrbitRemit’s online platform? Let’s take a look at the various payment services offered by the company.

5.1 Spot contracts

A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the OrbitRemit website or app, and with a couple of clicks, a transfer can be arranged.

5.2. Regular payments

If you need to transfer funds on a regular basis, a single payment can be scheduled as a regular recurring transaction. This allows any future payments to be direct debited automatically, providing a convenient solution to make better use of your time.

6. Customer service

In addition to the OrbitRemit headquarters in New Zealand, the company also has regional offices in Australia and the United Kingdom. Their customer service team can be contacted by phone or email.

+61 3 5294 0380 (AU)
+64 800 672 484 (NZ)
+44 800 622 6435 (UK)
info@orbitremit.com

In my experience, I found the OrbitRemit customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is OrbitRemit safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

7.1. Government regulated

As OrbitRemit is headquartered in New Zealand, the company is regulated by New Zealand Companies Office under FSPR reference FSP7721. OrbitRemit’s subsidiaries are also regulated by the relevant authorities in the jurisdiction of their international operations, such as ASIC in Australia and FCA in the United Kingdom.

7.2. Customer funds held on trust

In accordance with the standards imposed by government regulators, the funds of OrbitRemit’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should OrbitRemit encounter financial difficulties.

7.3. Website security

The OrbitRemit website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust OrbitRemit? Let’s take a look at look at some of the key factors which affect the company’s reputation.

8.1. Trustpilot

As of publication, OrbitRemit has received 16,746 reviews on Trustpilot with an average rating of 5 out of 5 stars; representing a positive experience in 91 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

8.2. Social media

Upon viewing the Facebook and Twitter  feeds of OrbitRemit, we can see a range of varied interactions between the company’s customer service staff and its customers. It appears that any queries raised by customers are being addressed within a couple days of posting, with OrbitRemit moving the conversation into private messaging to rectify the issue.

I must say that overall I am very impressed with the love that OrbitRemit’s customers have for the service. For example, see the Facebook post below of the company announcing its success in the Deloitte Fast 500; the post received 298 likes and 23 positive comments!

8.3. Mainstream media

As for the mainstream media, their reporting on OrbitRemit has generally been positive. Most pieces have aimed to provide insight into the company’s mission and culture, and explain how the company is doing its bit to assist the community with international remittances.

We have taken a customer centric approach from day one, looking at what the person sending money really wants and needs. Lifehacker

While OrbitRemit was focused on the global remittance market, it’s platform was also well suited to expand on the evolving the mobile market and other e-commerce payment trends. Stuff

New Zealand firms shine in Asia Pacific Technology Fast 500. Scoop

9. User experience

The OrbitRemit website has been designed thoughtfully, with special attention being paid to user experience and simplicity. As far as I am aware, the website is only available in English. In addition to its online platform, OrbitRemit has also developed mobile apps for both Apple and Android devices.

9.1. Signing up

The registration very, very quick. All you need to do is enter an email address and password. Alternatively, you can sign up with your Facebook or Google accounts. The entire process takes a minute or so.

Before you are able to commence transferring funds, you first need to provide proof of identification so OrbitRemit can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does OrbitRemit work?

To familiarise you with the OrbitRemit service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along.

Step 1

Visit orbitremit.com and log in. Once you have entered the OrbitRemit website, you are greeted with a relatively minimal interface. To begin a transaction, select the denomination of the currencies which you intend to transfer and click Make Transfer.

Step 2

Select your intended recipient and provide their bank details – the details of which are entered in a separate menu.

A summary of the quoted transaction is displayed for your review. At the bottom of the form you can assign the transaction a reference. Once you are sure that you want to finalise and proceed with the transaction, click Confirm and Continue.

Step 3

As far as I am aware, at this stage, funds can only be transferred to OrbitRemit via bank transfer.

Step 4

Once your transaction is confirmed, you are provided with instructions to proceed with your part of the payment. Before OrbitRemit can complete the transfer, you will first need to send your funds to their local account from your country of origin.

Step 5

Once your funds have been received by OrbitRemit in their local account, they will finalise the transfer to your recipient. You can track your transfer online and you will also be provided with email updates as the payment moves through the system.

All done!

Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the OrbitRemit online platform was simple to use and I was satisfied with the updates provided to me along the way. The entire process took 2 business days, and the funds arrived into my recipient account as requested.

10. Conclusion and final thoughts

OrbitRemit is a bit of a silent achiever. It manages to deliver funds on time, at great rates, and with a transparent fee structure. While the service is limited to residents of Australia, New Zealand, and the United Kingdom, it performs a very good job, and as a result, has a loyal following among its customer base.

For what it intends to do, OrbitRemit really sets a great example for others to follow. It competes strongly with what I consider to be market leading services, TransferWise and CurrencyFair. While it does offer some advanced functionality, it may fall a touch short if you have complex requirements – in that case, you might look at a more full-service offering such as OFX or WorldFirst. Otherwise, if you need a job done well, don’t hesitate to give OrbitRemit a try.

Our rating: 5 stars