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Sterling In Very Sharp Fall This Afternoon...

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nothing to see there. It's just because I am off to Italy in 2 days. It happens all the time. :angry:

Let's say that I warn you about my next trip 2 weeks in advance and you pay me a commission on the huge amounts you make by shorting GBPvsEUR, ok?

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Guest theboltonfury
nothing to see there. It's just because I am off to Italy in 2 days. It happens all the time. :angry:

Let's say that I warn you about my next trip 2 weeks in advance and you pay me a commission on the huge amounts you make by shorting GBPvsEUR, ok?

Penfold did this to me back in January before a Dam trip and now today. I am about to go to the Dam (Saturday). He always manages to make a pint even more expensive.

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I wouldn't pay any attention to any minor intra-day fluctations, it's still up on the month against the $ although bit down on the Euro. 0.5% average fall in a day is hardly news.

Edited by pl1

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I wouldn't pay any attention to any minor intra-day fluctations, it's still up on the month against the $ although bit down on the Euro. 0.5% average fall in a day is hardly news.

Well, it was annoying because I was about to do another clip of my holiday money for Las Vegas... got 2k last week at 1.6560, 2k at 1.6450 and reckon I could have achieved 1.6520 today before Merv got going. Oh well.

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Well, it was annoying because I was about to do another clip of my holiday money for Las Vegas... got 2k last week at 1.6560, 2k at 1.6450 and reckon I could have achieved 1.6520 today before Merv got going. Oh well.

well, I am about to convert my STR from £ to other currencies :angry:

(its in six figures) nice one :angry:

Lets hope its not the start of slide.

Edited by DisQ

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well, I am about to convert my STR from £ to another currencies :angry:

(its in six figures) nice one :angry:

Dangerous game. Good luck. Not much out there that could truly be described as 'safe'. Of course splitting it up between different currencies may be a plan. But it was probably a plan 2 years ago. As for today who knows. They are all part of the same big shitty game in the end.

Not sure what the spreads are for the safer accounts for foreign currencies (HSBC/Nationwide etc..)

You may end up 5% plus down straight away depending on this. Maybe someone knows what spreads these places offer ?

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Dangerous game. Good luck. Not much out there that could truly be described as 'safe'. Of course splitting it up between different currencies may be a plan. But it was probably a plan 2 years ago. As for today who knows. They are all part of the same big shitty game in the end.

Not sure what the spreads are for the safer accounts for foreign currencies (HSBC/Nationwide etc..)

You may end up 5% plus down straight away depending on this. Maybe someone knows what spreads these places offer ?

Please for the love of god don't put 6 figures through any more than 0.01 from mids. This is a retail banker's dream, his chance to rip you off for 2-3 grand. Make sure you go through someone reputable who can achieve a proper price.

If you need tips or contacts feel free to ask.

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Please for the love of god don't put 6 figures through any more than 0.01 from mids. This is a retail banker's dream, his chance to rip you off for 2-3 grand. Make sure you go through someone reputable who can achieve a proper price.

If you need tips or contacts feel free to ask.

Ok I will ask - what does the above mean ?!

I assume if you are putting cash into a different currency there will be a spread whilst moving it around ? Just wondering what sort of numbers we are talking about.

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Ok I will ask - what does the above mean ?!

I assume if you are putting cash into a different currency there will be a spread whilst moving it around ? Just wondering what sort of numbers we are talking about.

Dont do this imo.

These are the rates Natwest are offering at the moment straight off the website...

Currency Sell rate Buy rate

EURO 1.0722 1.2383

US DOLLARS 1.5602 1.8022

So if you convert say £50k to Euro you get 53,610euro (50,000*1.0722)

Now lets say you convert it straight back (as you would need to do eventually to spend it in UK)

you would get back £43,293 (53,610/1.2383) a loss of £6,707 or 13.4% !!!!!!!

So Sterling would need to crash just for you to break even.

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Well, it was annoying because I was about to do another clip of my holiday money for Las Vegas... got 2k last week at 1.6560, 2k at 1.6450 and reckon I could have achieved 1.6520 today before Merv got going. Oh well.

Where do you buy currency at those rates?

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Dont do this imo.

These are the rates Natwest are offering at the moment straight off the website...

Currency Sell rate Buy rate

EURO 1.0722 1.2383

US DOLLARS 1.5602 1.8022

So if you convert say £50k to Euro you get 53,610euro (50,000*1.0722)

Now lets say you convert it straight back (as you would need to do eventually to spend it in UK)

you would get back £43,293 (53,610/1.2383) a loss of £6,707 or 13.4% !!!!!!!

So Sterling would need to crash just for you to break even.

I wouldn't use High Street banks to transfer money especially if it's a large amount. Use one of the specialist companies like Currencies Direct which can get spot price in the market. I saved over 10000 euros when I transfered my money to Spain.

Edited by markinspain

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Ok I will ask - what does the above mean ?!

I assume if you are putting cash into a different currency there will be a spread whilst moving it around ? Just wondering what sort of numbers we are talking about.

There will be a spread but what you always have to remember is that the spreads the big banks get are microscopic. When I say a 0.01 I mean if USD is trading 1.6475 don't get a worse rate than 1.6375 i.e. 0.01 difference. Same goes for most currencies. The more emerging ones will be wider, like Turkish Lira or Brazilian Real but all the same try not to pay more than you have to.

A bank will usually face a spread in GBPUSD of maybe:-

1.6472/1.6475

I.e. It can buy USD for 1.6472 to the GBP or sell USD and get 1 GBP for every 1.6575 USD.

I don't mind paying a multiple of that, i.e. 0.01 rather than 0.0001 but I take offence at the sort of spreads that the post office and the retail banks charge. "We don't charge commission but we have a bid-offer spread you can drive a bus through". I.e. on a day like today probably something like 1.59/1.70 on USD which is just a joke.

You can usually find a broker or online dealer or currency specialist that will help you transact large amounts at more like the usual market spreads, but it's much harder to find a way to get those spreads on smaller amounts like 1k-2k, but there are still people who will help you out. I arrange all my friends' holiday currency now and it really is worth it, I think we saved about £300 on the bid-offer on our Turkish Lira last June.

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I wouldn't use High Street banks to transfer money especially if it's a large amount. Use one of the specialist comapnies like Currencies Direct which can get spot price in the market. I saved over 10000 euros when I transfered my money to Spain.

Quite. You'd have to be mad to use a high street bank to convert a large sum of cash into another currency: they're going to fleece you.

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I wouldn't use High Street banks to transfer money especially if it's a large amount. Use one of the specialist comapnies like Currencies Direct which can get spot price in the market. I saved over 10000 euros when I transfered my money to Spain.

I presume you mean Currencies Direct at: http://www.currenciesdirect.com/

How safe are they?

Wasn't there some problems with these type of websites going bust mid-currency-transfer. Heard something along these lines on Radio 4 a few weeks ago. Problems transferring money from London to India.

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I presume you mean Currencies Direct at: http://www.currenciesdirect.com/

How safe are they?

Wasn't there some problems with these type of websites going bust mid-currency-transfer. Heard something along these lines on Radio 4 a few weeks ago. Problems transferring money from London to India.

That's the company. Obviously, the world financial situation has changed since 2006 when I used them but they were very efficient and helpful then. All I can suggest is you do some research about them or phone them up as you can usually get an idea about professionalism by speaking to them about what you want to do.

They are not the only company out there either but I only suggested them as they had been good for me. Just google 'currency transfer' and lots of them appear. It has to be better than giving scum banks free money.

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Cheers for that info. Interesting. Only thing with the specialists is a bit of worry handing them over a wad of cash. But then if you go with a 'safe' bank they will rip you apart with the spread.

So if you use these currency direct or whatever - you transfer your money - where to ? Fine if you have some account sitting there but otherwise how would you go about this ?

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Cheers for that info. Interesting. Only thing with the specialists is a bit of worry handing them over a wad of cash. But then if you go with a 'safe' bank they will rip you apart with the spread.

So if you use these currency direct or whatever - you transfer your money - where to ? Fine if you have some account sitting there but otherwise how would you go about this ?

I do it in cash but for large amounts you would typically use a CHAPS transfer. For this you will need a bank account that can handle foreign currency. This in itself can be problematic and expensive. For the best rates for GBPUSD for example you would need to have a USD denominated bank account with online banking for them to wire the cash to.

I don't think there is really much counterparty risk though as long as you go with someone regulated.

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