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Whether you’re a Polish builder remitting money to your family in Poland or a grandmother sending the grandchildren in the US cash for their birthdays, sending money overseas can be nightmarishly expensive.

Overseas homeowners and expatriate pensioners are also regular users of international money transmission services. But what is the best way to do this, given that the high street banks charge commission of up to 2 per cent and transfer fees ranging from £20 to £40?

The overseas receiving bank may also deduct 0.5 per cent of the value of the funds it receives and fob you off with a rotten tourist rate, which is likely to be 2-3 per cent worse than the commercial rate.

So for a monthly transfer of £800, you could end up paying up to  £72 each time (including all charges) – nearly 10 per cent of the amount you are sending.

But specialist foreign exchange brokers can offer a better deal, offering lower rates due to economies of scale.

Moneycorp has transfer fees ranging from £4 for regular payments to £15 for lump sums. It also covers any charges the receiving bank levies.  Other foreign exchange specialists such as FCD and HiFX do not charge commission and transfer fees.

But the exchange rate is just as important as the charges and specialist brokers can also help here by allowing you to fix the rate for up to two years.

There is no fee for this service, but you have to deposit 10 per cent of the amount you want to transfer into an account with the broker, and you don't receive any interest on this.

This means you can avoid the risk of foreign currency fluctuation against sterling if you're buying a new build home abroad as you will have to pay the developer in instalments over a number of months or years. Even if you are buying a property outright, it usually takes up to eight weeks to complete the purchase.

Alternatively, you can ask the currency specialists to monitor the market for you. You set a price at which you would like to buy the foreign currency and set a limit on how low it should go before the broker automatically buys it for you. 

There can also be advantages from the exchange service's experience in working with foreign markets.

Foreign exchange is not a regulated industry, so check you are dealing with a reputable, well-established broker before parting with any money. You will also have to undergo anti-money laundering checks when open an account with the broker.