- Batch payments
- Xero integration
- Multi-currency account available
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
When you run your own business, every single dollar counts. Finding every way you can to save money and to get a better deal can make a big difference in the long run.
So if you need to send a business international money transfer, it’s crucial that you can find the best exchange rate for your transaction. To do that, you need to understand the factors that affect international exchange rates so that you can lodge your transfer at just the right time to take advantage of a high rate.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
The best time for your business to send an international money transfer is simply when the value of the Australian Dollar (AUD) is at its highest. For example, if you’re changing money from Australian dollars to US dollars and the current exchange rate is AUD$1 = US$0.74, waiting for the rate to rise to AUD$1 = US$0.76 will mean you get much better value for your money.
Of course, if you want to transfer money back to Australia from a foreign country, the flipside applies. By waiting for the value of the Australian dollar to reach its lowest point, you will get the best deal on your transfer to Australia.
Because it can save you a whole lot of money. The higher the value of the Australian dollar relative to the local currency in the country you’re sending money to, the more money you will save.
Even a slight variation in the exchange rate can make a big difference to the total cost of your transfer, especially if you’re sending large amounts of money.
As an example, let’s assume you need to send AUD$50,000 to the UK. The table below shows the cost of the transaction if you were to send your international money transfer when the exchange rate was at 3 different levels:
All of these exchange rates were available at different times throughout the 2016/17 financial year. While a maximum variation of GBP£0.05 might not sound like much on paper, it can make a difference of thousands of pounds to the total cost of your transaction.
As the table below shows, by sending AUD$50,000 overseas when AUD$1 is worth GBP£0.62 instead of GBP£0.57, you can send an extra GBP£2,500.
|Transfer A||Transfer B||Transfer C|
|Exchange rate||AUD$1 = GBP£0.57||AUD$1 = GBP£0.60||AUD$1 = GBP£0.62|
|Extra money sent (compared to Transfer A)||-||GBP£1,500||GBP£2,500|
Take a look back at the history of the value of the Australian dollar relative to other currencies and it’s easy to see that exchange rates fluctuate all the time. Changes don’t occur just from month to month or week to week. Rates can experience significant upwards and downwards movements on any given day.
The list of factors that can influence the exchange rate between any 2 currencies is extensive. We’ve included some of the main factors that can drive rates up or down in the list below, but it’s worth remembering that exchange rates reflect the value of 2 separate currencies, so events and developments in both of those countries can have an impact on the value of their respective national currencies.
Bill is an Australian business owner who wants to buy US$20,000 worth of equipment from a company based in the United States. As the equipment is not needed urgently, Bill decides to bide his time and wait for the most attractive AUD/USD exchange rate to become available.
The chart below shows the performance of the AUD/USD rate in the year leading up to 16 May 2017.
*Screenshot taken from xe.com, 16 May 2017
As you can see, the best time for Bill to send his transfer was in November 2016, when the exchange rate was AUD$1 = US$0.775. Other reasonable times to send were in October 2016 and March 2017, when AUD$1 = US$0.772.
This is a far cry from the exchange rate in December 2016 when the value of AUD$1 dropped to US$0.716. The table below shows the amount of money Bill could have saved by sending the money when the AUD/USD exchange rate was at its highest as opposed to sending the transfer when the rate was at its lowest.
By sending the money in November when the exchange rate peaked, Bill could have saved a massive AUD$2,126.51 and still have sent the same amount of US dollars to buy the equipment.
|November 2016||December 2016|
|Exchange rate||AUD$1 = US$0.775||AUD$1 = US$0.716|
|AUD needed to send USD$20,000||AUD$25,806.45||AUD$27,932.96|
* This is a fictional, but realistic, example.
SPONSORED: From lockdowns to currency fluctuations, make sure you consider all these key factors.Read more…
Retail outlets are shuttering but online transfer volumes rise.Read more…
Coronavirus uncertainty reigns in the markets, overshadowing small gains.Read more…
Australia's main exports are hit hard by coronavirus, while demand for the perceived safety of the greenback may continue growing.Read more…
AUD may be on the cusp of a new historic low as the Reserve Bank lays out its plans.Read more…
Foreign exchange specialist Chris Broadfoot gives us the lowdown on how Australians could be affected by Brexit.Read more…
The exchange rate isn’t the only thing you need to consider when sending money overseas. Keep the following factors in mind when comparing money transfer providers:
A final piece of advice for any business that regularly sends money overseas is to consider opening a foreign currency account. This allows you to hold money in another currency and then convert it into Australian dollars when a favourable exchange rate becomes available.
A guide to using PayPal for your business.
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.