How to transfer money internationally

 This article specifically relates to transferring money from  Australia to the US using Ozforex.com.au, ClearFX.com or  Tranzfers.com (all of the same company) for the purpose of  purchasing a property.

 

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Why not a bank?

The Ozforex companies listed above are a much better alternative to transferring through your bank.  Fees for each transaction around less than 1 cent per dollar as opposed to the 3-5 cents per dollar a bank would charge.

 

Tranzfers is largely established for UK/Australia transfers.

Ozforex charges a fee unless a minimum of $10,000 is transferred (minimum $2,000 transfer)

Clearfx charges no fees (minimum $2,000 transfer).  Clearfx.com.au is the recommended company to use as you are able to transfer amounts smaller than $10,000 without any fees.

Set up is easy, and can be done online.

 

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How to transfer?

You are ONLY able to transfer money between your Australian-based bank account and a US-based bank account using one of these online companies. There are two options for this to work;

 

1) Set up a US bank account in your own name or company name.  For this, you will generally need to be present in the US to set up due to the US Patriot Act.

If you transfer directly to your US bank account, be warned about incoming wire-transfer fees of around $12 per transfer.  When you eventually purchase a property, you will also be hit with a $25 fedwire transfer fee on each outgoing wire. The bank will set a maximum daily limit of $5,000 and to increase this you will need to be in the US when actually transferring money online (as you will need both a US mobile number AND US-based internet connection when online or it will not work).

This can be very expensive when you need to transfer a large amount of money and is therefore not the recommended option. It is still a good idea though to have a US-based bank account for rent to be transferred in or for the convenience of having a US debit card. 

 

2) Transfer directly to a property title company, your attorney, accountant, insurance company etc. All of these key companies/people have US bank accounts.

The best option is to transfer directly through Clearfx/Ozforex to the property title company after you purchase a property.  There are no incoming/outgoing transfer fees associated with this. When you transfer online, there is a maximum $20,000 daily limit for personal accounts in Australia, so be wary of this.  You can arrange for la arger transfer amount on Clearfx and pay it off over a few days.

nb: It is important when using this option to NOT use a SWIFT code.  A SWIFT code is a code that is used for international transfers to identify which bank to send the funds through to (much like a BSB in Australia).  When Clearfx transfesr the money through to your chosen US-based account, they send the money domestically through their own US-based accounts.  As a lot of companies use small local banks (and those small local banks utilize big US banks to handle their international transfers), if you use a SWIFT code the money is not directed to the correct bank and therefore returned to you – with of course their fee taken out of the funds.

 

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Summary:

• Set up a US bank account for future rental income and/or for the convenience of a US debit card.

• Set up an account with Clearfx.com.au

• After you purchase a property, send money directly to the title company through Clearfx.

• DO NOT use a SWIFT code for the transfer, it is not compulsory to use one and not recommended.

• For any other bills such as account fees, LLC set up etc. – transfer directly through Clearfx as long as it amounts to over $2,000.