It is common for crew to pay significant fees to open an offshore bank account and then experience ongoing monthly maintenance fees in order to receive their foreign income. If you earn in a foreign currency, you may also be paying inflated costs to convert your income into your resident currency and further fees to transfer it to your home bank account.
So what can you do to reduce or remove these charges and maximise your income?
Who To Speak To
One solution is to speak to a specialist independent currency broker. They can help you open a multi currency account which are often free to open with no ongoing maintenance fees. Once opened this provides you with a bank account in your name which can receive multiple currencies.
Your employer can then pay in to this account directly and allow you to convert your income into your home currency (or other), at competitive exchange rates, when you so choose.
Fund Security
When choosing a currency broker security of your funds is paramount. For a UK firm it is important to ensure the account provider is authorised and regulated by the FCA for the provision of payment services with e-money licenses. You can request the reference number to look them up on the FCA register.
This means your funds are segregated so if the firm were to become insolvent your funds would be returned to you. Other countries will have similar regulatory bodies you can refer to. If in doubt do not be afraid to ask direct questions.
Avoid Unnecessary Risk
Over the last few years there have been a few fintech firms offering these type of solutions, however in order to reduce costs they offer little in the way of guidance and support. By seeking out an independent broker you will often find you can speak to an expert in the market for guidance and support on all aspects of currency exchange and international payments. In fact some independent firms will provide you with a personal dealer so you can speak to the same person each time.
By talking through your specific requirements and by getting to know you, they can often provide additional services to help you exchange your currency at the best time for you, whether that’s to meet personal obligations, or to seek out favourable movements in the foreign exchange market. Again, these services are typically free of charge so it is certainly worth seeking out guidance if you are new to the currency markets to help you avoid unnecessary risk.
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