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TDH270

Getting Into Dollars

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I’ve just opened an off-shore US Dollars account so I can diversify out of sterling and the Euro. Looking at exchange rates, this looks a reasonable deal at the present.

But, I’d like to ask what others think before I take the plunge?

TIA

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I’ve just opened an off-shore US Dollars account so I can diversify out of sterling and the Euro. Looking at exchange rates, this looks a reasonable deal at the present.

But, I’d like to ask what others think before I take the plunge?

TIA

Whats the buying / selling spread?

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I'm glad you asked me that...

I only asked because I started a dollar account with HSBC a short while ago and was going to move money around until I found there was a 4% spread.

Bloody disgusting.

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I only asked because I started a dollar account with HSBC a short while ago and was going to move money around until I found there was a 4% spread.

Bloody disgusting.

To be honest, I don't know what it is. I will check and post here later.

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You can use a currency exchange serviceto get nearer spot. They charge about 8quid flat fee for the wire, and thats it. xetrade is who ive used. You can get their spot rates any time. www.xe.com

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As far as I can see, moving money in and out of my account I get spot price. I've had a look at the TC's and I can't see anything.

I doubt it. And don't assume that either, call them and check and record the conversation. I was told I'd get spot rate on a transfer to a US account by NatWest. They said I'd only get charged a fee of £27 and that the transfer would be "at the current exchange rate" which in NatWest's world was a fantasy rate about 4 cents less than spot. So the transfer cost me about £200 instead of the £27 quoted.

I've complained to the Financial Ombudsman - this is a complete scam as usual by the banks and in no way reflects the costs to them of doing these transfers.

Even worse is buying goods on a credit card. I recently got a rate of 1.51 from VISA when the spot rate was 1.59. Absolute joke.

Dollars are toast just like the £ and Euro. Buy assets that you think will hold their real value (but not property ;) ).

(edit: I now use hiFX.co.uk who have no fees but are up front about the rate you get - about 2 cents less than the spot for transfers over $8k).

Edited by Constable

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I doubt it. And don't assume that either,

I already have a Euro account with Lloyds International, I've been looking at the TC and the charges, I can't see anything worrying. But I will check further.

I will check my account value at Lloyds with the market price to see if there is any difference.

http://www.lloydstsb-offshore.com/offshore-savings/bonus-saver/

Edited by TDH270

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I already have a Euro account with Lloyds International, I've been looking at the TC and the charges, I can't see anything worrying. But I will check further.

I will check my account value at Lloyds with the market price to see if there is any difference.

http://www.lloydstsb-offshore.com/offshore-savings/bonus-saver/

HSBC were not up front about their 'costs' until I asked the question.

"If I change £1000 into dollars then immediately change my mind and want it back in £s, assuming the exchange rate has not changed in those few seconds, what do I get back".

Its a bit of an eye opener and they dont like being trapped into saying.

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FWIW, I used to have a Barclays $ account when most of my income was dollars and I didn't want to change them to £ at 2:1 [1].

IIRC there was a threshold of £25k. Above that you'd get money-market spot rates. Below it you'd get ripoff retail daily rates.

[1] Closed it March 9th 2009 - the absolute best day to change $ to £ on exchange rates.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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