How to send money to USA using a money transfer service or foreign exchange broker to a US bank account.
Transferring Money to the USA
When transferring money to the US either routinely or once in a while, there are numerous ways you can to ensure you get a fantastic US dollar rate, are offered excellent solutions and likewise guarantee you are moving money to the US securely.
Ways to Send Money to the USA
- Debit Card – If paying for products online or via an e-tailer, you may have the ability to utilise a debit card, yet are unlikely to be buying with a terrific USD currency exchange rate when sending money to the USA and with a debit card. You may similarly be billed an admin charge or transfer cost. Those looking to move cash to the United States to purchase a residence or pay a legal invoice to buy an American property may need to send money to the U.S.A. through a bank transfer, indicating they will be required to move funds by financial institution or preferably foreign exchange specialist. In many cases, a foreign exchange provider will accept a debit card as payment, enabling you to exchange currency with ease and obtain a better USD currency exchange rate.
- Credit Card – Perfect for leasing a property in the US to get financial recourse and the bank’s assurance. Excellent currency exchange rates won’t be offered, but often air miles or incentive points can compensate for this.
- Bank Transfer – Many will choose to transfer their money directly from a bank’s current account. Usually, the exchange rate to transfer money to the U.S.A. will undoubtedly be a lot less affordable than the currency exchange rate offered by a foreign exchange specialist. On top of this, you might have to visit your local branch to move a substantial amount. When sending money to the USA through a financial institution transfer, you will typically be charged a transfer fee of around ₤ 10-30 or local money equivalent.
- Swift / SEPA – Swift payments relate to money transfers outside the EU. Within the EU and for that reason, not applicable when sending cash to the U.S.A. is the SEPA payments system. As a result of the United States, dollar transfers not being part of the quick SEPA system, money transfers to the USA can take a few days longer than transfers within the EU.
Required Bank Details to Transfer Money
Identification – To send out money by bank transfer, you will need 1-2 kinds of a photo ID and require to have your debit card in your possession when going to the branch. If you can send out money to the USA using your online checking account, you may require a card reader and logins.
If utilising an FX broker’s services, all of your records will be saved when you opened up the currency transfer account. Your account manager will ask you a few straightforward questions to identify you over the phone. Foreign exchange specialist’s online systems are comparable to those of a financial institution, just with far better online currency exchange rate pricing.
Swift code – A United States Swift code will commence with a four-letter banks code, complied with a two-letter nation code, then a two-letter location code, ended by a 3-number branch code. American does not utilise the IBAN system.
Time Needed to Transfer Money to USA
- Typical time – For a foreign exchange provider to receive, convert your local currency to the US dollar, and transfer your money to an American bank account, you must allow between 1-3 working days. Sometimes the beneficiary bank institution may take a while to process as well as allocate funds. If using a retail banking institution, you should permit 1-2 days extra as their handling is usually slower.
- Same-day transfer – If funds are located in your foreign exchange transfer account, you have an opportunity of transferring your US dollars to America and them clearing within a day. A same-day transfer to the United States is incredibly unlikely when using the swift payments system. It can take the recipient checking account one day or more to allocate funds. Financial institutions will certainly take a while longer, usually 2-4 working days.
Cost of Making a Money Transfer USA
- Commission – Commission earned on money transfers by financial institutions differ from bank to financial institution yet are invariably uncompetitive. A foreign exchange provider will generally be able to save between 1-4% when sending out money to the U.S.A. and other locations.
- Transfer Fees – A financial institution will typically charge anywhere between ₤ 10 -40 to send your money to the US. Generally, foreign exchange specialists won’t bill a transfer charge. All included on foreign exchange live operate on a fee-free basis.
- Exchange Rate – Banks will generally utilise a ‘day currency exchange rate’, which will be set when the branch opens. To compensate for any market volatility relating to the US dollar, a healthy margin will be added to cover daytime volatility and protect earnings on USD trades. On the other hand, FX brokers work from the real-time United States dollar rates, allowing you to benefit from good trends and receive guidance if the rate works against you.
Fees to Receive Money in the USA
The United States adopts the swift payment service, which, when compared to SEPA, can be pricey and slow-moving. If you are sending money to the USA, you will most likely be billed an intermediary fee or charge. An FX broker will commonly absorb the cost, yet banks will certainly bill or deduct.
Limits on Money Transfers to the USA
Clients should not be limited to how much money they can move to the United States if you or your business can confirm the US money transfer. If your foreign exchange specialist authorises the money transfer, there is no constraint on how much you can trade.
Typically, suppose a transfer goes beyond ₤ 500,000+ or local currency comparable. In that case, your international currency broker can ask for a copy of a financial declaration to confirm your capability to satisfy the USD money contract. The currency broker may request supplementary documents to show the reason for the transfer (e.g., American house acquisition).
Transfer a Deposit to Open a US Bank Account
Worldwide financial institutions or foreign exchange specialists will be more than happy to assist with transferring funds to a new United States dollar checking account. Just ensure any documents, together with your American account details, are to hand, your financial institution or broker can, after that, assist with your US bank deposit transfer and send your money to America.
American banks will usually expect you to credit your account rapidly. Some banks open up the account with absolutely zero payment but generally bill $6 to 25 per month to keep the account topped up with less than $1000 monthly.
Do Foreign Exchange Specialists Transfer Money to all US Banks?
Foreign exchange specialists will be pleased to send US Dollars to any US bank, providing they have the correct state and federal regulation. An issue will only occur if the bank, credit union or investment house has been blacklisted. If this is the case, the foreign exchange specialists will do their best to protect their client and reject the client’s transfer. A transfer rejection only occurs typically when the account is linked with fraudulent activity.
Safely Transferring Money to USA
Fortunately, foreign exchange providers understand worldwide settlements scams exist and will be diligent in your place and run beneficiaries via their systems and flag any suspicious recipients.
- FCA – Constantly be sure your UK foreign exchange broker is financial conduct authority authorised. They shouldn’t ever hesitate to share their number on the FCA’s register, which should be stated on their website.
- Guarantees – Whilst a broker will not have the ability to provide guarantees. Their client accounts should be held with tier 1 banking institutions. All client funds should be allotted to segregated accounts, with funds kept individually from their capital. Therefore, if something was to occur to the foreign exchange provider, you could redeem the funds directly from the financial institution.
- Protection – Reputable foreign exchange services adhere to many anti-money laundering procedures to ensure they are exclusively looking after legitimate clients and companies’ transfers. Anti-money laundering continued when they trade money and likewise move funds to the U.S.A. to make sure standards continue to remain high. Money exchange brokers may inquire on transfers whose beneficiaries look suspicious. Cash broker’s FX trading systems are digitally protected. They use high degrees of internet protection to avoid the chance of their consumer’s information being taken.
- Fraud – Despite these preventative measures, obscure money transfers can occur within the global money transfers’ sector. However, you can take steps to limit your chances of ending up being a transfer fraud target. Never send your password or security logins over e-mail or be pressurised to make a money transfer by a foreign exchange specialist. Ensure communication with your broker is from their company e-mail address. If you are telephoned suddenly by an unknown member of the broker’s team or new currency account manager, arrange to call them back to ensure they are an employee of the forex broker you do business with.
Reasons to send money to the USA
- Bills – Your US property or company will certainly have regular running expenses and payments. These can consist of US state property tax, restoration costs, or power bills. A Foreign exchange provider will be over the moon to arrange regular transfers to cover your US account and take care of any money transfers to the U.S.A.
- Loans – If you have been lent money by a good friend or member of the family in America, you may desire to clear the financial debt if dollar rates move in your favour. Alternatively, suppose you have a home mortgage on your US residential or commercial property, and the dollar rate remains in your favour. In that case, you might take into consideration sending money to the U.S.A. to clear part of your USD domestic or office mortgage.
- Family – Birthday parties, as well as household celebrations, are never far away. Your foreign exchange account can be an excellent means to send economic gifts to a relative in America.
- Property – When the United States dollar currency exchange rate jumps in your favour, you might think of capitalising and remodel or improve your home in the United States.
- Inheritance – Regretfully, numerous people experience cherished family and friends passing away overseas. You could require to repatriate inheritance to America. A broker can sensitively take care of the transfer.
- Car – If relocating to America, you might wish to rent or invest in a vehicle to commute or discover other locations in the United States.
- Holiday – If renting a house or condo for a trip to the states, your foreign exchange provider will offer a better USD currency rate than your financial institution or debit card.
- International wholesalers – When buying items or products from the US, you can utilise a foreign exchange specialist’s solution to minimise FX risks related to buying from wholesalers selling in US dollars.
Foreign Exchange Brokers
Considering the services of a credible foreign exchange broker is the best way to save money when sending money abroad. Savings between 1-4% are feasible, significant on regular transfers and USA property purchase money transfers. They can also provide you with several solutions to maximise the amount of currency you receive in the USA.
Finding a reputable Foreign Exchange Broker
Clients can compare the offerings of transfer services and foreign exchange brokers in many ways when they need to transfer money to the USA.
- Regulation – always ensure the foreign exchange broker you use is regulated; in the UK, for example, brokers must be authorised by the FCA (financial conduct authority)
- Length of time in business – typically indicating knowledge of the market, number of clients they’ve helped, stability in the market. They are most likely to have helped many other clients transfer money to the USA and deal with many different scenarios.
- Transfer fee or no transfer fee – especially worth considering when the payments being transferred to the USA are small. A transfer fee can typically outweigh the advantages of sending the money to the USA via a bank or broker, even if the rate offered is competitive. All brokers promoted on Foreign Exchange Live work on a fee-free basis.
- Online transfer, telephone transfers or both – online Apps are great for small transfers to the USA. Recourse can be slow if the money goes astray. Customer service, when dealing solely online, can vary. Much of this service is via a chat/text box or e-mail. An established foreign exchange provider will operate both an online and telephone dealing service. Meaning you speak directly to an account manager who will be assisted by a back-office team or customer service division.
Find the Right Broker to Transfer Money to United States
Specialists such as Moneycorp and Rational FX have vast experience in advising and assisting clients all over the globe and saving them thousands of pounds in the process.
- Customer Service – Banks are cumbersome and hard to contact from overseas. Transfer apps can be convenient for smaller payments but don’t offer prompt customer support if an issue arises. Foreign exchange brokers offer a consistent service. All clients receive a personal account manager with a direct e-mail address and phone number to enable easy contact and customer service if required.
- Safety and Security – All top foreign exchange providers will hold client funds in segregated accounts. All transactions are conducted following the FCA regulations and guidelines, and we strongly advise you to check with your broker on the exact details.
- No Expensive Fees or Charges – Depending on the bank, for each transaction, it could cost anywhere from £10 to £4o or local currency equivalent. A foreign exchange broker will process your transfer to the USA with no transfer fees and a narrow margin (or spread).
- Better Exchange Rates – A bank will, as a rule, be making a spread of between 2-6%, whereas the rates on offer from leading providers will be around 1%. Once your trade is executed, you will be provided with a deal notification showing clearly the base currency amount and the number of US dollars purchased.
Foreign Exchange Contracts
A foreign exchange broker offers several supplementary services not available in banks or on many money transfer apps. These include:
- Spot contracts – Arranging a transfer and agreeing on a rate, and sending the money to the USA shortly after.
- Forward contracts – fix today’s exchange rate for payment up to 2 years in the future. You are guaranteeing the cost of your purchase and avoiding foreign exchange volatility.
- Stop-loss – If your currency pair is trending lower, a stop-loss protects your currency from depreciating too much. The money is traded automatically when it hits the agreed level.
- Firm order – target a rate better exchange rate to the current foreign exchange market rate. Once the desired exchange rate level is reached, the currency is purchased day or night automatically.
- Option contract – as with the forward contract and having the ‘option’ to opt for a better exchange rate if the FX market improves. Typically, a contract for businesses rather than private clients.
- Regular international transfers – A payment plan to send money to the US regularly.
Documents needed for a foreign exchange broker account
The application for your foreign exchange account can be completed within minutes. The first step is to apply online, giving personal details and a brief overview of transfer needs. Once complete, you will typically need to supply the allowing to get your account approved.
- A valid form of photo ID
- Recent utility bill or address proof (less than three months old)
List of Foreign Exchange Brokers
- Boutique brokerages such as Newbridge FX offer tailored services catering to their clients’ needs and working tirelessly to limit their FX risk.
- Midsize brokerages such as Rational FX operate both corporate and private client operations, focusing on key markets such as France and Spain.
- Large multi-Geographic operations such as Moneycorp operate in multiple jurisdictions and have many local offices to serve their global clientele best.
Arranging a transfer to the USA
Once you have chosen the foreign exchange broker, you wish to send your money to the USA with and have provided the broker with the relevant documents. The next step is to arrange a money transfer to the US. Your first transfer can either be placed over the phone or booked online or App if the broker has this feature. Once your USD exchange rate is booked, the broker will supply you with Bank details to pay your base currency or request a debit card payment. The broker will then ask for your USD account details to forward payments.
If trading online, the process will be very similar but just processed on your device.
Large Money Transfer to the USA
Timing is vital when making a large transfer to the USA. Therefore, many brokers will be advising getting in touch at minimum a few weeks before the transfer is needed. The difference in a 3% exchange rate movement on a £1000 is only £30. However, on a £100,000 transfer to the US, a 3% change will equate to a £3000 saving or loss.
Instant Money Transfers to the USA
A handful of money service providers offer instant money transfers to the USA. The transfer fees charged will be comparable with the fees taken by retail banks. The USD exchange rates on offer will be significantly worse than those on offer from a foreign exchange provider and be comparable to the exchange rates offered at airports and train stations.
When should I use an Instant Money Transfer Service?
Instant money transfer services should only be considered as a last resort. The fees taken relative to the amounts typically sent are significant. We suggest only using instant money transfer services if a friend or family member has no money and needs USD urgently.
Banks in the USA
The largest US banks are all household names, with the majority enjoying a global footprint. Opting for an international bank can be highly beneficial when managing your US bank account and currency flows from overseas.
- JPMorgan Chase Bank
- Bank of America
- Wells Fargo Bank
- U.S. Bank National Association
- Opening a bank account in the USA
Opening a US Bank Account
US bank account opening information can change from bank to bank and state to state. We can, however, provide a rough guide that includes the following elements –
- Your Passport
- Proof of US address
- Bank or credit card from your overseas bank account
- Social security number – a guide to obtaining a US SSN
- Initial deposit to credit your US account
The bank could request further documents subject to your status or the banks you are applying to. These could include some or all of the following:
- A secondary form of Identification, work Visa or student identification
- Immigrations documents
- Bank statement from your local bank
- Credit report
- Covering letter or certificate from your US employer
- College or University enrolment documents
Whilst a handful of banks might work with you remotely to get your account approved, you should be prepared to hop on a plane if needed. Regrettably, whilst the world moves on in terms of technology and less antiquated client services, the banking sector remains a face-to-face business. Although technically possible to open an account remotely, be prepared to travel.
Can I Send Money from an American Bank Account to the UK?
Sending money from an American account to the UK isn’t an issue at all. One consideration is that you’ll need to use a company like Newbridge FX or Moneycorp if you live in the US. The reason being is that they regulated to trade in the US. All you’ll need to provide is the UK bank details to facilitate the transfer.
Can I Send Money from a US Bank Account to a European Bank Account?
A foreign exchange provider can arrange a transfer from USD to euros with ease. The only details your broker will need to make payment to Europe is the Banks details where you wish to transfer the euros.
US bank account details
US bank details are formatted slightly differently to other accounts and different terminology. Fear not; your Currencies Direct account manager will be on hand to help you through all the steps of your transfer. To initiate a money transfer to the US, you’ll require the following, which can either be added online or confirmed by your account manager.
- Full beneficiary account name
- US Bank account number
- ABA number
- Bank name Bank address
You can then book a transfer and expect the US Dollar funds to arrive at the pre-agreed rate within just a few days.
Sending Bank Deposits to the United States
Banks or foreign exchange specialists will be delighted to send bank deposits to the United States. All you’ll need is the relevant documentation and to make sure your US banks details are to hand. Once this has been provided, your foreign exchange broker will be able to convert your currency and transfer the US banks deposit to your account.