How to exchange and transfer large sums of money to Spain
I’ve previously mentioned that we use Wise to transfer money from back home (Canada in our case) to Spain. That’s for “pocket money”, enough to pay rent, groceries, etc. And you save a lot of money using Wise over traditional bank transfers.
I wrote about that here: Why we use Wise to transfer money overseas. That was written in 2021 – We’re in 2024, nobody should be using traditional bank transfers anymore.
But what do you do if you have to exchange/transfer a large amount of money? Say you want to put a deposit down on a home or buy a car. What then?
In a case like that you don’t use Wise. There’s no problem with their exchange rates, the issue is with withdrawal amounts, personal service and compliance paperwork. There’s no personal service with Wise (it’s an online platform) and no person you can talk to for any of the above. That’s because big transfers are just not what they specialize in.
To exchange and transfer large amounts, you deal with financial companies that specialize in foreign exchange. A few examples: Spartan FX, Torfx, and Currencies Direct.
I recommend Spartan FX. They have the highest customer satisfaction of all the companies in this domain.
So what are the advantages of using Spartan FX?
Market Rates: Like Wise, Spartan FX uses mid-market rates (ie. real rates) set by the market, not padded rates like the banks.
Personal service and support: Unlike Wise, you get personal service and support with Spartan FX. So you actually have a person monitoring your money. They know where it is at all times. It won’t get lost or held up somewhere.
Compliance and security: larger amounts mean more paperwork. Spartan FX ensures that your transactions are smooth and meet all regulatory requirements.
Advanced Financial Tools: Financial companies like Spartan FX handle forward contracts, allowing you to “fix” your exchange rate even if your money is only required 6 months down the line. That eliminates exchange rate volatility.
Note: in my prior life I worked as the CFO of a large exporter of Canadian wheat. One of my responsibilities was doing foreign exchange for millions of dollars and stressing out as the currency markets fluctuated wildly, even during the course of a day. My point: if you’re dealing in big bucks, the exchange rate makes all the difference in the world and you want to lock it in. That might be by fixing a current rate in the market or by placing an order with your broker for where the market might be weeks or months down the line. That’s why advanced financial tools like forward contracts are an important component of foreign exchange.
Market Insights and Risk Management: Related to the above. Say you’re looking to buy a house 6 months down the line. Do you do your currency exchange now? Do you wait? With Spartan FX you can have a chat with your broker and figure out what strategy to take.
Like I say, a company like Spartan FX should only be used for larger transactions where you face more foreign exchange risk. The big selling point is service: getting the rate you want on a foreign exchange transaction, having your paperwork in order, making sure that you get your money with no issues. That’s why you use Spartan FX.
How to get started? Sign up for their free Moving Money Guide. Once you do that, a broker will contact you for a free consultation.
Header Image credit: Delaware Business Times
Related: Moving to Spain from the UK and buying a property
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