CurrencyFair is a peer-to-peer marketplace for international money transfers. Their service is available to consumers in Australia, UK and Ireland. There are two available methods for transferring money with Currency Fair.
Peer-to-Peer Marketplace
The unique peer-to-peer marketplace offered by CurrencyFair allows you to exchange foreign currencies with other members. This enables you to avoid transferring money between bank accounts, subsequently avoiding the interbank fees that are associated with money transfers. Banks charge each other to process money transfers on your behalf and you are usually stuck with the bill. The peer-to-peer environment enables money transfers within the CurrencyFair platform, avoiding the bank charges completely. To make a transfer, select the currency exchange, along with the amount and desired rate and wait for CurrencyFair to find you a match. The platform gives you the option to have your transfer partially or fully matched. For example, you may be looking to exchange $600 AUD to USD at a desired rate and you have been matched with a user looking to buy $300 AUD at your exchange rate - you will have the option to accept the transfer and keep the remainder of the money in the platform looking for a match. The peer-to-peer marketplace is an excellent option if you have no time constraints and want to receive the best possible rate.
Best Available Rate
For customers wanting to make a transfer immediately, CurrencyFair offers a ‘best available rate’ option. Here, transfers are made between bank accounts in a typical fashion with CurrencyFair try to offer a 0.5-0.6% improvement on money transfer rates with the major banks.
KEY INFORMATION
Transfer Limits
The minimum amount you can transfer through CurrencyFair is 8 Euros. This is a lot lower than the minimum amount offered by many foreign exchange providers. There is no limit on the maximum amount you can transfer.
Transfer Time
Once a match is found, the time for a standard transfer is 2-3 days as it is made through a local clearing house. CurrencyFair offer a priority service where the beneficiary will receive the money within 1 business day. This transfer is processed via SWIFT and there is a $100 charge applied. To receive the funds the same day, it is recommended to make the transfer before 1:30pm.
Transfer Fees
There is a fixed transfer fee of $4 AUD (or currency equivalent) for each transfer. A $100 fee will be charged to a priority transfer. Standard rate adjustment which can vary. As of December 2015, this was 0.15%.
MORE INFORMATION ABOUT CurrencyFair
How a transfer can be made:
To make a transfer with CurrencyFair you will need to create an account. Visit their website and fill out the application form, providing the relevant ID. You will receive an email confirming your account (typically within one business day). Before making an international money transfer you will need to add funds to your account from your bank. Once the funds have cleared you will be ready to trade. If you are making a money transfer on behalf of your business, you will need to create a business account and follow the relevant steps.
PROS
- Peer-to-peer market offers the best possible rate
- Very low fees
- Low minimum transfer amount
- Multiple ways to make a transfer
CONS
- Not available 27/7 - markets open from 22:30 Sunday until 20:00 Frinday
- Limited currencies
