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RationalFX entered administration in November 2023. They are no longer accepting new customers. More info
The company offers a boatload of features, designed to make transfers as seamless as possible. Read along for detailed coverage of what makes RationalFX a force to be reckoned with.
RationalFX boasts a team of 100+ dedicated currency specialists and an intuitive money transfer platform, and compared to traditional banks, this company is faster and cheaper. However, when sending money through RationalFX, you have to contend with the fact that only bank transfers as a payout option are available. If you're looking for more payout options, you might want to consider other money transfer companies.
RationalFX Exchange Rates and Costs
The RationalFX business model has fees and exchange rate margins as sources of revenue. However, the fees charged are minimal and the exchange rate margin is small as well.
Transfer Fees
Making international payments through RationalFX is affordable. The transfer fees are comparably low at £4 for transfers under £4000 or its equivalent in the currency you are transferring from. If you use the Regular Payment service this transfer fee is waived.
Exchange Rate
RationalFX has a currency converter widget on its homepage that you can use to get a free quote for your currency pair. When transferring small values of about £1,000, the exchange rate margin RationalFX charges is 1.42%. For large transfers of about £100,000 the margin drops to 1.03%. Compared to banks that charge up to 5%, RationalFX gives you bank-beating deals.
Other Fees
All personal card payments from non-EU/EEA countries will incur an additional surcharge of 2.3%. You may be charged landing fees by the receiving bank and payment fees by the credit card company or payment method you choose. RationalFX doesn’t factor in these fees when calculating the cost of a transfer.
If you're just getting started with online money transfers, we've prepared a simple guide to help you find the fastest ways to send money abroad.
Top Countries to Send to With RationalFX
RationalFX serves over 170 countries in over 50 exotic and standard currencies. The top countries in its profile as far as transfers are concerned are as follows:
RationalFx is based in the United Kingdom with an office in the financial district of Canary Wharf.
While sending money from the United States is not supported by RationalFX. RationalFX supports many online money transfers from the United Kingdom to the USA.
In 2020, Canada sent $6.5 billion USD around the globe with the majority of payments being sent to China, India, and the Philippines.
RationalFX Pros and Cons
RationalFX is in business to ensure its customers get the best transfer deals in terms of exchange rates and transfer fees. It is one of the few companies out there that have transformed international money transfer space into complete solutions. Below are some of the advantages of RationalFX.
- Zero Fees on Regular Transfers: If you are making regular payments on such expenses as utility bills, mortgage repayments or school fees, RationalFX charges you $0 fees.
- Consistently Better Rates: Compared to banks that charge margins of up to 5%, RationalFX has much better rates, giving you more of the destination currency per unit of the host currency.
- Expert Account Managers: RationalFX has a team of currency experts who can help you decide when to do your transfer and how to lock in the best rate.
- Transfer options: RationalFX doesn't just give you the opportunity to transfer money to your family and business associates, they give you options. You can use limit orders, forward contracts, regular payment services and so forth.
- Daily Market Report: RationalFX customers and subscribers have the benefit of receiving a daily market report. This report analyses the performance of different global markets and gives a preview of the impact these performances have on currency movements.
- Minimum Transfer Amount: The minimum amount you can transfer on RationalFX is £100. Senders making small transfers to family and friends may feel excluded by this limit.
- No Cash Pickups: RationalFX only supports bank transfers. There is no option for cash pickup. When sending money to people in remote areas with no access to formal banking services, RationalFX may not be the appropriate channel.
RationalFX Transfer Types
RationalFX has structured its product offering to include both personal and business transfer solutions.
Personal Transfers
These transfers are targeted at individuals who want to send money or receive money from abroad. The solutions are tied around needs such as buying a home abroad, emigrating, importing valuable goods, tuition fees, mortgage repayments, and overseas rent.
Business Transfers
Businesses involved in international trade need a suite of solutions that give them control over their international payments. RationalFX is at the forefront in ensuring that businesses plan effectively and put in place tighter controls over their finances. The solutions offered, enable businesses to make bulk payments and do international payroll.
To ensure both business and personal transfers are done efficiently, RationalFX has further structured its foreign exchange options into the following products:
Regular Payments -This solution is for people making transfers abroad. RationalFX does not charge any fees for such transfers.
Spot Contract -This solution is targeted at people and businesses making realtime transfers or those making transfers within two business days
Forward Contract -This contract enables you to fix a rate today and transfer at some point in the future. It helps businesses and individuals to hedge against exchange rate fluctuations.
Limit Order -This product allows businesses and individuals to target a specific exchange rate for their currency pair. If the rate is reached, the transfer is executed.
Stop Loss -This foreign exchange option allows you to set a worst-case scenario rate. If the rate falls below this scenario rate, the transfer triggers to prevent a further fall.
Hedging Strategy -This strategy helps businesses guard against unfavourable market conditions. RationalFX has dedicated currency specialists who advise businesses on the best solutions in light of their risk combination.
All transfers are credited into the recipient's bank account. RationalFX doesn't have a cash pickup solution.
RationalFX Money Transfer Speed
There are two main factors in determining the length of time it takes for an international money transfer to reach the recipient. The first part is the time it takes for funds from the sender's payment solution to the provider. The second leg is the time it takes from the provider to the recipient bank.
RatonalFX accepts bank transfers and payments via debit card and credit card. Funds paid through debit and credit card are received at RationalFX faster than bank transfers. From RationalFX, it only takes 24 hours for the funds to get to the recipient.
Due to timezone differences, currency pairs, and regulations by the receiving bank, transfers may take longer to clear. On average most currencies take between 1 and 2 days for the funds to be credited into the designated bank account.
RationalFX Payment Methods
When paying for your transfer on RationalFX, there are three main payment options you can choose from.
Bank transfers
Credit card
Debit card
Credit and debit card payments cost a little more but your funds get to the recipient faster. Bank transfers require that you have a bank account and can be quite slow.
Best Ways to Use RationalFX
Depending on whether you are making personal transfers or business transfers, RationalFX can offer several payment solutions.
Personal Transfers
If you are transferring money at an individual level, you can opt for RationalFX for the following use cases.
Buying a home abroad
Emigrating-RationalFX can help you convert your cash at competitive exchange rates
Importing valuable goods
Education Fees
Pension
Mortgage Repayments
Overseas Rent -You can convert your overseas rent income at rates guaranteed by Rational FX
Business Transfers
As a business involved in international trade, you take control of your payments to overseas suppliers through RationalFX. The following are some of the ways you can use RationalFX for your business.
Paying overseas suppliers
Receiving payment from international customers
Paying overseas contractors and freelancers
Making recurring payments
Can I Trust RationalFX?
RationalFX is a private limited company incorporated on 8 March 2005 in the United Kingdom as Rational Foreign Exchange Limited, company number 05385999. The registered office for the company is Floor 32, One Canada Square, London, United Kingdom, E14 5AB. The company's directors are Rajesh Agrawal, Paresh Davdra, Chris Humphrey, Derek Louis Playford, and James Joseph Warner.
In the UK, RationalFX has the authority of the Financial Conduct Authority to provide payment services under FSA Registration Number (FRN) 507958. The regulations governing the operations of RationalFX are contained in the Payment Services Regulation 2017.
Under HM Revenue & Customs Rational Foreign Exchange Ltd, RationalFX is registered as a Money Service Business (MSB No. 12206957). Its services are regulated by the Money Laundering Regulations 2017.
The company revenue as per the 2018 financial statements of RationalFX stood at 10 million pounds. Out of this 77% came from corporate services while 23% is attributed to private services. At the close of 2018, the company had a total of 82 employees including executive directors. The company accounts are audited by Nexia Smith & Williamson.
In the industry, RationalFX has joined professional associations such as the Association of International Property Professionals (AIPP), UK Money Transmitters Association (UKMTA), and London Chamber of Commerce both in the UK and Hong Kong.
RationalFX segregates client funds as part of regulatory requirements and puts them in a safeguarding account at Barclays Bank PLC. The separation of funds ensures that in the event of insolvency, client resources are protected.
Client data in the custody of RationalFX is protected under the Data Protection Act 2018. All interactions on the RationalFX online platform are secured with bank-level solutions including SSL for web site information protection.
RationalFX User Feedback
Looking at Trustpilot where RationalFX has a total of 2,097 reviews, 91% of the customers rated the company either as ‘Excellent’ or ‘Great’. The features that the customers praised the most are:
Excellent Rates -The margins RationalFX charges are low hence high rates for transfers
Customer Service- RationalFX has expert customer support in both business and individual transfers
Low transfer charges compared to banks
An Intuitive website and an easy-to-use app
Some of the customers who weren't as pleased with Rational FX cited account suspensions and occasional transfer delays as their reasons for rating the company either as 'Bad' or 'Poor'.
How to Send and Receive Money With RationalFX
Signing up and sending money on RationalFX is simple and fast. Once your account has been verified it should take less than 10 minutes to send your first transfer. To get started follow these simple steps:
Sign Up for an Account
Verify Your Identity
Add the Recipient Details
Pay Then Track Your Transfer
Receiving Money With RationalFX
As bank transfers are the only pay-out option supported by RationalFX, there is little for you to do when waiting for an online money transfer to arrive. It’ll take between 1-2 business days for your transfer to arrive at your bank account, with those paid for via debit/credit card arriving the fastest. Simply follow these two steps:
