Transfer fees and exchange rates eat into your money more than you might think. This article explains how to compare the real cost and what to avoid.
The real cost has two parts
The fee shown on screen is only one part. The rest is hidden in the exchange rate: a provider may charge no fee but apply a rate a few per cent below the market rate.
The right way to compare is to look at how much your family receives for the same amount in euros, not at the fee line.
What to avoid
- Sending cash home with acquaintances, with no paperwork at all.
- Using unlicensed services that promise unusually high exchange rates.
- Sending all your earnings home in the first month without keeping a reserve.
Note:Always keep a reserve of at least one month's living costs in Germany. A rental deposit, medical costs or a month of late pay can all happen.
Read next