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General Congreve

Cheapest Way To Exchange Currencies?

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In the interests of protecting the value of my remaining Sterling not invested in precious metals I am considering buying a few Norwegian Kroner and perhaps some Euro's, or maybe some other currency that looks good at the time.

Obviously being stung by fees or the exchange rate could make this relatively pointless as a protective measure, as the cost of changing out of Sterling and then back at some point could negate any advantage to be had from relative currency fluctuations.

So, in order to minimise this problem, can anyone tell me the cheapest way to exchange currency?

Edited by General Congreve

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In the interests of protecting the value of my remaining Sterling not invested in precious metals I am considering buying a few Norwegian Kroner and perhaps some Euro's, or maybe some other currency that looks good at the time.

Obviously being stung by fees or the exchange rate could make this relatively pointless as a protective measure, as the cost of changing of of Sterling an then back could negate any advantage to be had from relative currency fluctuations.

So, in order to minimise this problem, can anyone tell me the cheapest way to exchange currency?

There are numerous brokers that will beat the banks rates for relatively small sums. Ones to look up are HIFX & Schneider. Not sure if they are happy to provide you with an account to hold the funds assuming you wont want to spend them.

You could also get exposure through spread betting, but this is not something I know much about.

Edited by worzel

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There are numerous brokers that will beat the banks rates for relatively small sums. Ones to look up are HIFX & Schneider. Not sure if they are happy to provide you with an account to hold the funds assuming you wont want to spend them.

You could also get exposure through spread betting, but this is not something I know much about.

Thank Worzel.

I know enough about spread betting to know you can make you fortune or lose your shirt, on average 9 out of 10 spread betters are losers, me included, although I've only lost £65 out of the £100 I allocated to train myself in the 'art' of spread betting. Who knows, one more punt and I might win it all back and hit the big time. Either that or I'll lose my last 35 quid and end up on the fast track to gamblers anonymous.

Anyway, I'm looking more to protect the value of my Sterling, hopefully make some modest gains from currency movements and to diversify away from gold and silver which I have an adequate amount of my liquid assets in already. Not that I don't have a lot of faith in gold and silver over the longer term, but eggs in baskets and all that.

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Halifax International do quite a good rate if you exchange more than £150,000

I'll just pop down the cash machine :lol:

Not quite as much as I have or intend to swap, perhaps more in the region of 15-20k into 2 or 3 different currencies.

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Halifax International do quite a good rate if you exchange more than £150,000

forget them for smallammounts just tried them for a simple 3k transfer from Halifax UK account to Halifax spain account was offered 1.11 euros plus a£9.50 standing charge, 9 months ago you got very near the rate and no charge :angry:

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Granted it's small amounts (£500), but I xfer a monthly amount using Paypal. Takes a couple of weeks (so they profit from it sitting in their account, no doubt..) but rates seem the norm & no commission.

G

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oanda.com , one pip spread you can transfer 100 quid into one currency and back again and only loose (1 hundreds?) of a penny as long as the price doesnt move between your transactions! They do currency trading, and actual currency transfers. The currency trading is cheaper, the currency transfer incurs a 25USD charge but it is much much much cheaper than a bank and better for large amounts.

Edited by moosetea

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Open a euro account, and I'll sell you EUR 1000 per month at the nominal exchange rate and zero commission! :)

Actually, it'd be great if it were possible to organise something like this. Most of my income is in euros, so I'm always exchanging them for sterling - it'd be nice to deny the bank its cut!

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In the interests of protecting the value of my remaining Sterling not invested in precious metals I am considering buying a few Norwegian Kroner and perhaps some Euro's, or maybe some other currency that looks good at the time.

Obviously being stung by fees or the exchange rate could make this relatively pointless as a protective measure, as the cost of changing out of Sterling and then back at some point could negate any advantage to be had from relative currency fluctuations.

So, in order to minimise this problem, can anyone tell me the cheapest way to exchange currency?

If you are interested in exchanging to Zloty, you can convert for an tiny charge in Poland. 0.3%. Its feasible to go from GBP-Zloty-Euro have a look here http://kantory.pl/kursy/

You can walk in with thousands and change over in cash at walk in booths...

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Granted it's small amounts (£500), but I xfer a monthly amount using Paypal. Takes a couple of weeks (so they profit from it sitting in their account, no doubt..) but rates seem the norm & no commission.

G

How does that work, do you just transfer your paypal account sterling into paypal account euros? How do you withdraw the money? I assume you need a euro bank account registered to your paypal account to do that?

Edited by General Congreve

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Have you looked at HSBC's international personal currency accounts? You can transfer money between them and a Sterling HSBC account.

£3 per month charge for a Euro or Dollar account. £5 per month for others, although not every currency is available of course.

Prices:

http://www.hsbc.co.uk/1/2/personal/current...rgKYe:12ntf2618

What makes you think the Norwegian Krone is good? I must admit I've had a similar thought but that comes purely from my beginner's clueless guesswork. Strangely, I'm also wondering if Iceland is another one worth a look for hedging purposes.

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Have you looked at HSBC's international personal currency accounts? You can transfer money between them and a Sterling HSBC account.

£3 per month charge for a Euro or Dollar account. £5 per month for others, although not every currency is available of course.

Prices:

http://www.hsbc.co.uk/1/2/personal/current...rgKYe:12ntf2618

What makes you think the Norwegian Krone is good? I must admit I've had a similar thought but that comes purely from my beginner's clueless guesswork. Strangely, I'm also wondering if Iceland is another one worth a look for hedging purposes.

Norwegian Krone is a strong currency backed by a surplus economy whose government aren't going off the deep end with QE, hence it is probably a better punt than Sterling in coming months.

Edited by General Congreve

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How does that work, do you just transfer your paypal account sterling into paypal account euros? How do you withdraw the money? I assume you need a euro bank account registered to your paypal account to do that?

That's pretty much it. I top up with Sterling, use 'Manage Currency' to xchange it into dollars, then send it via 'Send Money' to her indoors' US account to pay her US Student Loans.

Simples ;)

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If youre in Sterling now you should stick with it.

Well looking at moneycorp, as recommended as the cheapest way to exchange by someone here, it would seem it will cost me 150 quid one way to change £2500 to Norwegian (biggest figure I could calculate on line), having done the sums myself. That's 6% one way, so it may not be worth it unless Sterling takes a huge dive on top of the losses that are already factored in. Of course no one can be sure which way the markets will move, just look at the stupid dollar.

B'Stard, do you have any other reasons for sticking with Sterling?

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I need to start stockpiling Japanese Yen - which of the places on the high street usually give the best commission these days? I used to be a fan of M&S but they seem to have got a bit uncompetitive of late.

Thanks!

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