How to set up a multi-currency account: A simple guide for freelancers

Traditional banks charge a lot more for currency conversions than modern fintech solutions. Your freelance earnings can take a hit when you receive payments from international clients or pay overseas suppliers.

A multi-currency account is a perfect solution for today's freelancers. You can save money on international transactions with providers like Wise that support over 50 currencies and charge fees of just 0.43%. Managing global payments has become easier with popular platforms like Revolut and PayPal, which offer transactions in 25+ currencies across 200 countries.

Want to streamline your international payments and keep more of your hard-earned money? Let us walk you through everything you need to know about setting up and managing a multi-currency account for your freelance business.

Why do freelancers need a multi-currency account?

Working with international clients creates unique money challenges for freelancers. A multi-currency account helps solve these problems by providing practical ways to handle global income.

Managing international client payments

International transfers take 10-12 days for regular payment methods. Freelancers also lose 8-12% of their money through various transfer fees. A multi-currency account simplifies this process. You get paid in local currencies and receive your money the same day.

Reducing currency conversion costs

Bank transfers come with multiple fees that eat into your earnings. A £1,000 payment through regular banks costs you £75 just in conversion fees. Banks also charge extra fees of about INR 16,753 for transfers around INR 837,657.

A multi-currency account helps you save these costs by:

• Cutting out repeated currency conversions
• Giving you better exchange rates
• Lowering transaction fees by 2-5% per transfer

Improving cash flow management

A dedicated foreign currency account simplifies handling money in different currencies. You can hold and use various currencies without converting them immediately, allowing you to wait for good exchange rates before converting your earnings.

Your business runs better with automated reconciliation tools that match incoming and outgoing payments. This automation saves you from manual work and gives you time to focus on your core business. The combined view of all transactions in different currencies helps you track expenses and plan finances better.

Choose the right multi-currency bank account

You need to think over several vital factors when choosing a multi-currency account.

Key features to look for

A strong multi-currency account should provide detailed currency support and quick transaction capabilities. The best accounts give you local account details in multiple currencies. This helps you make faster payments through local networks instead of SWIFT transfers. The top accounts support transactions in 25-40 currencies. This allows continuous international operations.

• Account security features like multi-factor authentication
• Immediate exchange rate updates
• Integration with accounting software
• Local payment network access
• Mobile banking capabilities

Popular account providers

Wise leads the pack with support for over 40 currencies and clear pricing structures. Their business accounts charge 0.43% for currency conversions. Revolut Business provides accounts in 25+ currencies with local details in GBP, EUR, and USD.

PayPal handles transactions in 25 currencies in 200 countries. Its fees range between 2.29% and 3.49% for domestic transactions. Airwallex offers local currency accounts in 21+ currencies and supports payments in 180+ countries.

Fee structures and limits

Knowledge of fee structures helps you avoid surprise costs. Most providers charge for:

Currency conversion: Rates typically range from 0.43% to 3%. Notwithstanding that, some banks add markups of 2-4% on currency exchanges.

Account maintenance: Some providers charge monthly fees, so you should review recurring costs carefully. While some fintech platforms have zero monthly fees, traditional banks often need minimum balances.

Transaction limits: Daily withdrawal limits vary by currency. USD accounts often allow withdrawals of up to USD 5,000 per day. These limits follow local banking regulations and differ by provider.

Step-by-step account setup guide

The process to set up a multi-currency account needs proper documentation and verification.

Required documents

You need specific documents to open a multi-currency account that verify your identity and address. These include:

• A valid government-issued ID (passport, driver's licence, or national identity card)
• Proof of address through utility bills, bank statements, or government documents
• Phone number for two-factor authentication
• Email address for account notifications

Application process

The account setup usually takes 2-5 days. Here's what you need to do:

1. Complete the online registration form with your personal details
2. Select your primary currency preference
3. Provide contact information and residential address
4. Set up security features and authentication methods
5. Submit required documentation

Verification requirements

Document verification starts right after submission. You'll need to complete a selfie verification process that includes:

• Taking photos of your identification documents using your phone or computer webcam
• Capturing a clear photo of your face
• Submitting proof of address documentation

Large transactions (above INR 6,750,436) may need extra documentation. The verification review time varies by provider and can take anywhere from a few minutes to two working days. Once verified, you can start sending, receiving, and holding money in different currencies.

Some providers let you verify through existing bank account transfers as valid identification. This option helps users who want a faster setup process.

Managing your foreign currency account

Managing your multi-currency account works best with optimised payment processes and smart currency handling.

Setting up payment methods

The right payment setup will give you smooth cross-border transactions. Modern multi-currency accounts support payment platforms and gateways that enable automated collections and disbursements. Your account typically links with:

• Payment gateways for e-commerce transactions
• Accounting software for automated reconciliation
• Invoice management systems
• Local payment networks for faster settlements

Currency conversion strategies

You can protect your earnings from exchange rate changes with smart currency conversion strategies. Several approaches help you manage currency risks:

Forward contracts are binding agreements to buy or sell currency at a specified future date and rate. You can lock in exchange rates and know your future transaction costs with this method.

Matching lets you keep received foreign currency in your account until you need payments in that same currency. To name just one example, see if you receive USINR 168.76m and need to pay USINR 160.32m to a supplier - keeping the amount in your account removes conversion costs.

Leading and lagging strategies help you time currency conversions based on expected rate movements. You can convert currencies early when rates look good or wait when better rates might come along.

Record-keeping best practises

Good records help you stay compliant and track international transactions. Multi-currency accounting software updates exchange rates and converts figures with up-to-the-minute data analysis. This automation cuts down manual errors and gives you consistent financial data.

Monthly reconciliation is vital to keep accurate records. Your reconciliation should check the following:

• Each account's balance matches its currency
• Exchange rate calculations use current rates
• You quickly fix any differences in transaction timing or fees

Tax compliance needs detailed records of currency conversions and fees. Your software should create complete reports that show transaction histories, exchange rates, and any gains or losses from currency changes.

Integrate with your freelance business

Multi-currency accounts blend with business tools to automate financial operations. This feature reshapes how freelancers handle their international income streams.

Connecting payment platforms

Multi-currency accounts work with multiple payment gateways and give global clients various payment choices. These integrations help match transactions automatically and cut down administrative work by 80%. Centralised treasury management lets you see your global cash positions in real-time.

Accounting software integration

Your multi-currency account works with popular accounting platforms like Xero and QuickBooks. We found these key benefits:

• Live exchange rate updates help maintain accurate financial records
• Automatic currency conversions work with 160+ currencies
• Automated matching cuts reconciliation errors by 66%
• Streamlined processes speed up accounting close by 25%

Invoice management

Multi-currency accounts come with reliable invoice management features that make billing easier. The software captures, processes, and tracks invoices in one place. It matches receipts to transactions right away, so you don't need manual data entry.

The automated invoice collection system fills out payment details automatically, reducing human error. These systems now support different payment methods in 196 countries. Some providers offer financing options that extend payment terms up to 120 days to help manage cash flow better.

The integration goes beyond simple accounting with AI-driven tools that make multi-currency transactions more accurate. These tools track expenses, create detailed spending reports and analyse transaction data. Application integration services help maintain uninterrupted connections with existing software while protecting data integrity.

Small financial savings lead to big wins for your business!

• Collect from 130+ countries.
• Local USD, GBP, CAD, EUR accounts.
• Free FIRA

Sign up now

In a nutshell

A multi-currency account is a smart financial move for your freelance business. These accounts help you save on international transactions and give you tools to manage global income streams better.

The right multi-currency account with proper management strategies can revolutionise your international payment handling. You'll get competitive exchange rates, pay lower fees, and automate financial processes to save time and money. On top of that, smooth integration with accounting software and payment platforms makes your business operations run smoother.

To get the most from your multi-currency account, pick the right provider and implement solid currency management strategies. Your best approach is to evaluate specific needs, compare providers, and connect with your existing business tools. This strategy will help your international freelance business grow while maximising your account's benefits.allowing. It

Disclaimer: This guide provides general information on multi-currency accounts. Before setting up, verify details with providers. We assume no liability for financial decisions or outcomes.

Contributed by Denila Lobo

Denila is a content writer at Winvesta. She crafts clear, concise content on international payments, helping freelancers and businesses easily navigate global financial solutions.