According to the Western Union website, money order “is official documents that represent a specific monetary value.” They are a very accessible way to pay and send money, since it does not require a bank account or credit for it to be issued, only to have the money amount.
They are very similar to checks but with some differences.
Since the money order is prepaid, you must buy it before it is issued. So, for example, if you want to send one money order for $100 to a friend or relative, you must first pay it in advance.
In addition to being paid in advance, you must include a beneficiary who will be the person or organization you want to send the money to.
Once the money order is paid and generated, it can be mailed or physically delivered to the payee. The money order must bear the signature of the payer.
You should keep any documentation related to the money order, such as a receipt or proof of the issue until you are sure that the beneficiary has signed and cashed the money order.
Because issuers require prepayment, the money order is a relatively secure form of payment, so it shouldn’t bounce as some personal checks do.
It should be noted that whoever issues the money order or payer, it doesn’t matter if it’s the personal name of the beneficiary or the name of a financial institution, it will appear on each money order.
And when you buy one, you must specify in the document who will receive the funds, with a full name, which makes it difficult for third parties to steal the document and obtain the money.
In the first step to fill out a money order, you must know exactly how much money you are going to send to the beneficiary before going to buy it. Then enter the name of the person who will receive the money from the money order, depending on the recipient it can also be the name of a company.
Put the name of the company or person you are sending money to on the line where it says “Pay on request of …”
Then, having entered the name of the recipient, you will authorize them to collect the money.
You are the one who sends the money and therefore you are the buyer, so you have to enter your address in the section that corresponds to the buyer, as it’s the way for the recipient to communicate with you in case they have problems with the payment.
If the sending of money has to do with the payment of an invoice, you must include its number in the field indicated as Account number because in this way you ensure that the payment is credited to your account.
At the bottom of the money order, you will see a field that says “Buyer’s Signature”. This is the place where you must sign.
Keep the receipt because it is the only proof you have that you have sent money, so keep it in a safe place.
There are several sources to buy one, you can do it through supermarkets, convenience stores, banks, credit unions, and payday loan stores.
Here’s a list of different places where you can buy and fill out a money order.
1. United States Post Offices (USPS)
Both the US Postal Service and any other issuer, when selling you a money order, require that you pay with guaranteed funds.
If you are going to send money within the United States, you can send up to $1,000 with a single Money Order and the commission will not exceed $ 1.75. If you want to send money outside the United States, you can do it to countries that have agreements with the USPS, and each Money Order is capped at $700 ($500 for El Salvador and Guyana).
The cost for international money orders is $10.50 plus each country’s processing fee.
You can buy MoneyGram money orders at any Walmart store in the United States and the maximum commission will be $1 (although the exact amount may vary depending on the location of the store) that you can pay in cash or with a debit card.
If you’re buying a money order at Walmart over $1,000, you’ll need to present a government-issued photo ID.
If you want to send money with an international money order, then you will pay a little more (you can use the MoneyGram calculator to find out exactly how much).
You can also find branches in pharmacies, supermarkets, and convenience stores such as CVS, Kmart, Safeway, Publix, Kroger, Meijer, and 7-Eleven, among others.
3. Western Union
This is a great option for sending money abroad because Western Union has a network of almost 500,000 agents around the world of which 57,000 are in the United States. And like MoneyGram, you will find branches within other retailers.
However, money orders purchased in the United States can almost always be cashed only in this country.
In Western Union you can buy up to five money orders of $1000 each and its commission will be around $1.50 but it will be different depending on your location and the amount of each money order.
4. Banks and credit unions
Buying a money order at a bank or credit union can be a little more expensive than anywhere else. But if you are a large customer of the bank and you only make these types of purchases occasionally, the difference may not be important to you.
The great appeal of buying a money order from a bank is that it is easier to track the money.
Some banks offer cashier’s checks instead of money orders because they are safer, and although the recipient will not notice the difference, first ask your bank which option they offer.
Although you can start in Forex even with a small amount of money, most of the time Forex it’s used by investors, traders, financial institutions, or companies with large capital.
The main operators in the foreign exchange market are the following:
1. Financial institutions
They can participate in the market in a speculative or hedging way or acting on behalf of a client.
Any international economic transaction, from a transfer to the purchase of foreign shares, implies a previous passage through the Forex market.
2. Commercial companies
Companies in the non-financial sector that operate with international clients and suppliers also intervene in the market.
The operations of some multinationals can have an unpredictable impact on the currency exchange rate of small countries.
3. Central banks
they operate in foreign currency markets to control the money supply, inflation, and/or interest rates of the currency of their country. Most of the time they impose
exchange rates or even use their international reserves to stabilize the market.
The expectation or rumor of a central bank intervention may be enough to alter the value of a currency. However, central banks do not always achieve their objectives, and in some cases, the market may impose itself on a central bank.
4. Individual investors through intermediaries
Thanks to this market, specialized companies have emerged that are responsible for providing account management services in forex, investment funds, and automatic systems.
Today it’s believed that the foreign exchange market (FOREX or FX) is the financial market with the highest growth projection in the modern financial world.
The Forex market lacks a centralized location; it operates as a global electronic network of banks, financial institutions and individual traders, all dedicated to buying or selling currencies under its volatile relationship of change.
5. Investment fund management companies
These companies act in the foreign exchange market to gain access to the financial markets of other countries and thus be able to invest in bonds, stocks, etc. on behalf of the participants of their funds.
- By not having bureaucracy nor a central market, the costs are also very low.
- Orders are fast and you can find a counterpart in a short time.
- The Forex market is transparent: it’s almost impossible to manipulate it, that’s why it’s very difficult to make forex scams.
- There is no restriction for trading: you can go long, bet short or sell in a few seconds.
- In the market, you can get liquidity 24 hours a day and, in the case of cryptos, all week.
- These accounts can allow you to operate with more capital than is available in the account. You can earn a lot of money trading Forex, no matter if you invest small amounts.
- Forex is not regulated. Therefore, we must be clear that Forex trading with currency exchange is a huge market that crosses countries and borders.
- There is no centralized market. There is nobody that can resolve the possible discrepancies that may occur. This lack of control in the market can cause some problems that don’t occur in other markets, such as the lack of information about the volume being traded or there may even be price differences.
- The danger of leverage: With a minimum deposit, you can make or “lose” a lot of money.
Yes, of course you can.
But you must be very informed and operate only with Regularized Brokers, which are subject to the rules and regulations of Authorities recognized worldwide, and look after the interests of the clients, protecting them from irregularities and misuse.
In this way, you can avoid falling into forex scams, because although it is difficult to make them, it’s not impossible.
One of the great advantages of using this kind of platform is that you can make money by investing money.
But always remember to be wise and cautious with your financial investments.