Efficient Capital Mobilization: Opening Up New Possibilities
Cost-efficient capital mobilization is one of the most important determinants of a sound financial strategy. Currently, the average consumer pays 7.35% on all funds transfers globally— Deloitte recently said that even a 5% reduction in this cost can save up to $16 billion annually. These reports speak volumes about the inadequacy of conventional money transfer method where people pay exorbitant fees on every transfer worth $100,000. For expats who’re sending money home, paying this extra money is outrageous—these premiums are effectively excluding people from a right to access their own money. Add the taxes charged on these services and it becomes clear that by controlling the flow of capital the state is trying to control how we can spend money.
It’s a very devious set up when you think about it really—there’s really no other way for people to send money across borders because the alternatives are incredibly risky. Apparently, people lost $905 million to funds transfer scams in the past year alone—a majority of these were through wire transfers. So, anyone who wants to send money abroad either has to pay that 7.35% premium or they can risk all of the money, the choice is theirs. With the interactions between exchange rates and these baseless premiums charged by service providers, I’ve personally met a lot of people who complain of the problems with funds transfers.
Foreign Exchange Rate Fluctuations—A Money Transfer Nightmare
When you’re transferring money across borders, your service provider will convert the amount and then charge a premium on the converted amount. This subjects the cost of money transfers to foreign exchange fluctuations, which never really work out for you.
For example, if you’re transferring money from Dubai to the US at a fixed exchange rate of $1 to 4 Dirham— if the exchange rate shifts even the slightest to something like 5.1 Dirham to $1, you’ll have to pay your service provider for that extra change. Interestingly enough, the money transfer service providers don’t even follow the exchange rates on the open market or the mid-market rate, they also charge hidden premiums. So, while you might look up a certain exchange rate online, your service provider will probably offer an exchange rate that’s at least a couple of base points higher.
With each hidden cost and the taxes, you’ll need to pay on your money transfer, a simple $1000 transfer might cost you something around $1100 assuming the exchange rate doesn’t fluctuate. That’s pretty bad because the penalties get higher as you send more money across borders. It makes people think twice about transferring money, it cuts off their families from financial support and it creates a delay when you absolutely need to send money across borders.
Potential Global Recession And Capital Mobility
I recently wrote out a few articles about how Hong Kong is one the brink of economic collapse, as well as both the US and China because of their pointless trade war. These are three of the most robust economies in the world and a lot of people have their money tied in Hong Kong’s financial markets. I’ve advised people to move their money out of the city and even if they don’t they’ll need to bail fast if they are to survive this inevitable financial crash.
You can’t afford to wait around for your money transfer service providers to send your funds because the exchange rate fluctuations will create mass panic and so will the value of your funds in Hong Kong. While I understand how the value of currencies can change and the need for transfer service providers to charge based on exchange rate values—you’ll need to reduce the hidden costs you’re paying. Additionally, your service providers will need to transfer money ASAP before the exchange rate plummets further—preferably an online money transfer service.
Thankfully, there are money transfer service providers who don’t exploit people by charging them insane amounts of money. The people over at MoneyCorp offer some of the best funds transfer services in the industry. I’ve suggested their services to many of my clients looking to send money abroad to their families in different countries.
These guys handled transactions worth $4.72 billion, working with individuals and companies alike to offer an affordable money transfer solution. The services are available 24/7 and you have the option to send funds 24/7 and throughout the year. They have offices in all major financial centers across the world and guarantee that your funds will be transferred immediately. For more information on MoneyCorp click here.
If you’re thinking of moving your money to a safe location, you should also get in touch with the Caye International Bank. They open bank accounts with a minimum deposit amount of $1000 instead of $250,000 like many other offshore banking service providers. With the quick and cheap money transfers offered by MoneyCorp and the financial services offered by the Caye International Bank, you’re all set to experience the full extent of financial mobility.
Whether or not we’re looking at a global financial crisis, having access to the fastest, cheapest and most secure financial services are great advantages. If you’re thinking of investing in international commodity markets or if you’re conducting business across borders, the ability to move capital shaves off crucial seconds needed for a huge profit. If you’re working with foreign exchange, are looking to transfer funds or trying to open offshore bank accounts, waiting around will drastically affect the profitability of your financial decisions.
Financial systems across the world will remain inefficient considering the problems with existing methods of funds transfers. You personally will feel limited with respect to your financial mobility because of the associated costs of sending money to your family. Financial mobility is one of the leading concerns for financial markets across the world but governments around the world use coercive methods to keep people restricted. MoneyCorp is making changes in the market by offering competitive money transfer services that are highly efficient and reliable.
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About The Author
Mikkel Thorup is the Director at EscapeArtist.com the oldest and largest offshore website in the world and hosts The Expat Money Show podcast. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. Mikkel has spent over 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran. His goal is to help people just like you to generate additional streams of income, legally eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. Follow Mikkel Thorup on Twitter @ThorupMikkel
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