5 Tips to Help You Save When You Transfer Money from Dubai

Transferring money

If you’re planning to leave the UAE for good, then one thing you’ll need to consider is how to move your savings back to your home country. We teamed up with IFX UK Ltd, an FX company based in the DIFC, to source the best tips to save money when transferring your money back home. IF you would like to save 2-3% on your currency transfer, just fill out our short form and a currency expert from IFX will contact you.

Here’s our quick guide to help you make the right choice:

1. Look up the current exchange rate from the UAE Dirham to your local currency.

The first step in the process is to know the rate at which UAE Dirhams convert to your home currency. This will be the baseline for all your negotiations with your bank or FX provider. There are readily available websites and tools online that can help you with this. Tools such as XE app, as well as websites like Bloomberg and Oanda will give you an indication of where the exchange rate is trending.

2.Β Get to know the different channels available to transfer your money back home.

Aside from your local bank, there are a few channels to send money back to your home country. These can range from your mall-based exchange houses, such as UAE Exchange, Al Rostamani and Al Ansari, to more specialised, independent FX (foreign exchange) providers based in the DIFC. Get in touch with their representatives and ask them for a quote to transfer money from Dubai.

3. Compare quotes from each of these channels.

Whether it’s a bank, an exchange house or an FX company, every provider has their own fees associated with a Dubai money transfer; the main one being the profit (or β€œspread”) they take on the transaction. On average, banks charge around 3-5% with exchange houses and specialised providers will charge less (1-2%). In some cases, there may be a separate transaction fee on top of their spread.

So for example, as of this article’s date of publication, 1 UAE dirham converts to 0.2048 British Pounds (based on a quick search on Oanda). A bank however, may quote you to convert your dirham into 0.1946 British pounds, and take a 5% margin. While it doesn’t sound like much, if you’re moving AED 100,000 back home, that means the 5% margin will cost you close to 1,000 pounds.

4. Negotiate.

Not all of us are comfortable negotiating a discount, but you should know that the rate you get from your bank or FX provider is negotiable. Getting competitive quotes from several providers can help with your negotiation, and your FX provider will be willing to shave off a few dirhams if you suggest that you might switch to another channel.

5.Check the fine print.

Whenever you decide on which company to use, one other thing to consider is theΒ professional integrity of the company. In the UAE, there are two main types of regulations – the Central Bank which is the body that the local exchange houses report to, and DFSA (Dubai Financial Services Authority) which is an independent regulator similar to the FCA (Financial Conduct Authority) where FX companies are registered. Both regulators require an FX company to have a safeguard on client funds and have strict auditing processes on the company’s practice. Your FX provider should voluntarily present their registration details to you.

If you want to discuss how to get the best possible rate and service for your international transfers ahead of your international move, get in touch with IFX UK Ltd Dubai office quoting ServiceMarket for a cost-free consultation.

Get in touch with IFX UK Ltd Dubai office

This article has been contributed by IFX UK LTD: Founded in 2005 with a global presence, IFX has over 100 employees more than 40,000 companies and individuals manage their FX exposure.

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