WE may live in a global village, but if you've tried to send money to friends or family abroad, you'll know that we're not quite as interconnected as you might think.

Many banks and international transfer agents siphon off a chunk of your cash and offer terrible exchange rates. These might be the most secure ways to move money overseas, but there are other methods.

Here is a guide to various options.

Western Union and Moneygram

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• How to move to France

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• How to transfer money abroad

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These two international companies allow you to transfer money in minutes to almost anywhere in the world.

Western Union has over 345,000 agents in 200 countries. To send more than £600 at an agent's office you must have proof of identity. More than £2,000 will require two forms of identity. You can also send money over the phone and online.

Moneygram is a slightly smaller operation, with less than half the agents in only 180 territories. However it can be slightly cheaper. The service is also available from branches of the Post Office and Thomas Cook travel agents.

Banks

High street banks have a variety of services which allow you to transfer money abroad. The prices vary based on the country you are sending the money to, the currency, the value of your transfer and how quickly you would like it to arrive.

As anyone knows who has paid bills with debit cards on holiday, banks do not always offer the best rates of exchange for transactions and this will push up the overall cost of the transfer compared to other methods. Charges can also be applied by banks at either end of the transfer. Although these start at about £8, they can rise to £20, or more. You can often elect to pay for all, part or none of these charges, but the charging structures vary, so you should check first.

It is often cheaper to go online and use your bank's website. HSBC, for example, charges £15 for an overseas transaction made online, but £21 in its branches.

To transfer money overseas you need both your own and your recipient's BIC number (Bank Identifier Code) and IBAN (International Bank Account Number).

Some banks have current accounts aimed specifically at immigrants who regularly transfer money back to the countries of origin, such as the HSBC Passport account, which costs £6 a month, or NatWest's Welcome Account for Polish-speaking migrants. Other accounts, such as the LloydsTSB Silver Account, which costs £7.95 a month, include benefits such as money transfer cards.

Online payment services

A number of websites send your cash across the world for a fraction of the price of a bank transfer. Most charge a percentage of your transfer, so are particularly advantageous for smaller sums. These websites are also one of the quickest and most cost-efficient ways to move money around internationally.

With 4.6 million accounts holders, Moneybookers.com allows you to send money to any e-mail address. It is cheap, charging 1 per cent, or a maximum of €0.50, per transfer sent. However, there are also charges to withdraw money from your account. In Europe, the charge is €1.80. To transfer money, you need to open a Moneybookers account and transfer funds from your bank account to your "wallet", which is free to do. Likewise, the recipient of your cash has to set up an account to access the cash. Moneybookers is regulated by the Financial Services Authority, and is based in London.

PayPal, the payment system originally set-up by eBay, the auction behemoth, to handle payments between bidders and sellers, has become a successful online payment system in its own right. To set up a PayPal account you need an e-mail address (available free from sites such as google and hotmail), from which you can send money free to other account holders around the world in 16 currencies.

Fees apply only when receiving the cash, and transfering it to a bank account. These vary from country to country, but do not differ too much from UK rates. For example, for amounts up to £1,500 the fee is 3.4 per cent plus 20p, so to transfer £50 would cost £1.70 plus 20p, paid by the recipient.

The currency conversion rate that both Moneybookers.com and PayPal use is usually competitive and displayed for each transaction.

It is also worth looking at InterchangeFX, a foreign exchange website that offers free money transfer services at excellent, commission-free rates. Tranzfers.com also promises not to be beaten on its exchange rates, and charges a flat fee of £7 to transfer money from the UK to countries including the US, Europe, Australia and South Africa. The flat fee means transfers could be considerably cheaper than PayPal or Moneybookers.

Insured Mail

You can send cash, cheques or travellers cheques overseas in the post with the Royal Mail's Airsure service. It costs £4.20, plus the cost of your airmail letter (from 94p up to £1.64, for a small letter). Cash is insured up to £100, but some countries do not allow you to receive cash in the post, so check before you send.

Specialist currency broker

If you need to send large sums of money abroad you should use a specialist foreign exchange broker, which will offer far more competitive rates than your bank. HiFX, for example, handles transfers of more than £5,000 and will e-mail you its rate of exchange to compare with other brokers, or your bank. Specialist brokers can also offer services if you are buying a house abroad. Others include Moneycorp and Foreign Currency Direct.

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