How To Send Money To Thailand – Forbes Advisor UK

If you need to send money to Thailand – to friends and family, to buy a second home or for business – it’s important to secure the best exchange rate and keep fees and charges to a minimum.

With a range of options available when sending money overseas, here’s a look at the pros and cons of different methods for currency transfer to ensure you’re getting the most Thai baht for your pound.

Is the pound strong against the Thai baht?

The official currency of Thailand is the baht. It is divided into 100 satang. Among the best tourist rates £1 Sterling is worth about 42 Thai baht (May 2023). The 10-year high was in 2015 when £1 Sterling bought just over 56 baht. 

When the pound is strong against the baht this is good for tourists and holidaymakers in Thailand as their spending money goes much further when buying currency. 

Conversely when £1 falls relative to the baht it is more expensive for Brits to visit and send money to Thailand – their hard-earned pounds buy less currency.

What are the different options for sending money to Thailand?

There’s lots of choice about how you send currency to Thailand. Different options might suit different needs so always do your research.

The method that’s right for you will depend on your own circumstances and your specific money transfer, for example how much you want to send to Thailand and how quickly you need to get the money there. 

However, here are the main options:

High street bank

Using a bank to send money to Thailand is likely to be convenient and secure – but it won’t usually be the cheapest option. 

High street banks tend to charge high fees for foreign currency transactions and the exchange rates may not be the most competitive. 

A bank transfer also won’t usually be that fast – it could take a number of days for the funds to be cleared and at your destination in Thailand.

In addition some banks impose a maximum limit on the amount you can send internationally per day, although this is likely to be fairly high.

Digital money transfer

Digital and app-based money transfer providers, such as Revolut and Wise, typically have lower fees and charges than a high street bank. 

The exchange rates may also be more competitive. 

However, there might be limitations on the amount of currency you can send per day and they may not include all world currencies. Starling Bank doesn’t do Thai baht transfers, for example.

Digital transfer can usually offer instant, often fee-free transfers using the ‘real’ or mid-market currency rate. But these sorts of providers don’t tend to have a banking licence in the UK, so your money isn’t protected under the Financial Services Compensation Scheme if the provider goes bust. 

If you’re worried about the safety or your money check what protections are offered by the provider.

Currency broker

Specialist currency brokers (sometimes called FX brokers) are another cost-effective option. They offer competitive exchange rates and fees – these will usually be better than your high street bank. Typically online or app-based FX brokers enable you to send small or large sums quickly to Thailand, although some providers impose maximum transfer limits. 

Also watch out for providers highlighting ‘no fees’ or ‘no commission’ – as fee-free options might be masking a poor exchange rate on your currency. 

You can usually get an idea of the cost of your Thai baht transfer on the website or app of the different providers. This is a useful way of comparing between different companies before making your choice on the best deal.

With plenty of choice of provider on the market, do your research and ensure you use an FCA-authorised company with competitive currency rates and low charges. If a broker is authorised by the regulator then client money must be ring-fenced from the finances of the business, this means it is protected should the firm go bust.

Among the FCA-authorised FX brokers are HiFX, Moneycorp, TorFX, IG, Capital.com, City Index and Pepperstone, for example. To use an online broker you’ll have to register and set up a payment option, typically a credit or debit card, to make your payment.

High street money transfer

Convenient and a popular way to send cash, particularly if you don’t have a UK bank account, high street services such as Moneygram and Western Union have some advantages but they are not a cheap way to send money to Thailand.

They can be a good option if the sender or recipient does not have a bank account to receive the funds, as they can simply collect the cash from a designated outlet in Thailand. 

Both Moneygram and Western Union have a network of physical premises and agency premises across Thailand where money can be collected in person. But the fees for this type of service can be high, exchange rates are often not the most competitive, and maximum cash transfer limits can be low.

Paypal

PayPal is a quick and convenient option if both you and the recipient in Thailand have a PayPal account. But PayPal is an expensive way to send money abroad as the foreign conversion fees tend not to be particularly competitive.

How long will it take for my money to clear?

This depends on which currency transfer service you use. Bank, digital transfers and currency broker services can usually get currency to its intended recipient the same day, although the fees and charges can sometimes be high for quick transfers.

How much money can I send to Thailand?

Some FX providers and many banks apply a maximum daily or per transaction limit on your currency transfer. So, if you need to transfer a large amount of Thai baht, compare different providers to see which will best suit you, factoring in safety and security of the transaction. 

There are also likely to be extra checks and ID requirements if you’re planning to send a large sum, due to money laundering rules.

Similarly there can be less choice of options if you only want to send a small amount of currency — and the charges can be disproportionately high.

Is my money safe?

While the big UK banks that are fully regulated by the Financial Conduct Authority will give customers protection under the Financial Services Compensation Scheme (up to £85,000 per person per banking institution), other currency providers may not offer FSCS protection.

Some currency exchange companies offer their own money safety net scheme, but it may not be as generous or robust as the FSCS. It is up to individuals to decide what level of financial protection they’re comfortable with.

FCA-authorised FX broker firms are obliged to keep clients’ money separate from the company’s own funds – this will protect you if the firm goes bust. But if a company is just on the FCA register (and not authorised or regulated), then customers’ cash could theoretically be lost if the company went into administration.

Can I lock into an interest rate but transfer the money later?

It is possible to do this with what is called a forward contract.

With a forward contract you can fix or lock into a particular exchange rate making the actual currency transaction at a later date.

This can provide peace of mind and help with budgeting if you need to make a large money transfer, for example. It can also save you a lot of money if the value of the pound weakens against the baht before the transaction goes through.

There is the risk that the pound will strengthen in value though, so it is a gamble, but the forward contract can help you hedge against a worsening exchange rate.