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Darkman

Best Method Sending Us Dollars To A Uk Sterling Account?

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This has been touched on before no doubt, but usually the other way round i.e. pounds to dollars. How can I get the best rate sending a large amount of US dollars over to a UK sterling account?

Is it actually worth using a third party company for a better rate, or is it simpler to use the US banks exchange rate?

thanks

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This has been touched on before no doubt, but usually the other way round i.e. pounds to dollars. How can I get the best rate sending a large amount of US dollars over to a UK sterling account?

Is it actually worth using a third party company for a better rate, or is it simpler to use the US banks exchange rate?

thanks

Oanda is a good one. Need confirmed ID, US $ bank account and confirmed UK £ bank account (scanned document upload to their website). You don't get spot rate and there is a transaction fee but the overall exchange rate on a large transaction should comfortably exceed anything the bank can offer.

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Oanda is a good one. Need confirmed ID, US $ bank account and confirmed UK £ bank account (scanned document upload to their website). You don't get spot rate and there is a transaction fee but the overall exchange rate on a large transaction should comfortably exceed anything the bank can offer.

I presume currencyfair would also work - much better rate than the banks

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Send it from China and make sure it is marked as "gift" or "toy"! :unsure:

If you label it "drug money" somebody will get interested, probably your triad Boss! :blink:

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Currencyfair is very good in my experience; once your account is set up and you have done a trade, I think you can deposit from any account and withdraw to any account.

I use it to pay foreign clients, it always impresses them when they get a same day domestic transfer straight into their bank account.

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Since most of my income is in EUR and most of my outgoings in GBP, I'm very interested in finding the cheapest way to change EUR to GBP. To date I've simply accumulated cash in a German bank account (Postbank) and transferred a chunk to my UK bank account every now and again, but I'm always on the lookout for better ways to do it.

I normally transfer EUR 4,000 or so each time. The German bank charges a flat fee of EUR 3.55 for this. I've just been checking the exchange rates used, and they seem to average about EUR 0.0017 (0.2%) less than the ECB reference rate for the relevant day. If the ECB reference rate is the rate used by the currency traders mentioned, then their typical fee of 0.5% of the traded amount would cost me appreciably more than the simple bank transfer I currently use. Or am I missing something?

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Since most of my income is in EUR and most of my outgoings in GBP, I'm very interested in finding the cheapest way to change EUR to GBP. To date I've simply accumulated cash in a German bank account (Postbank) and transferred a chunk to my UK bank account every now and again, but I'm always on the lookout for better ways to do it.

I normally transfer EUR 4,000 or so each time. The German bank charges a flat fee of EUR 3.55 for this. I've just been checking the exchange rates used, and they seem to average about EUR 0.0017 (0.2%) less than the ECB reference rate for the relevant day. If the ECB reference rate is the rate used by the currency traders mentioned, then their typical fee of 0.5% of the traded amount would cost me appreciably more than the simple bank transfer I currently use. Or am I missing something?

The point of these brokers is they give you the spot rate, or very close to it. My experience of UK->Germany is the bank gives you a massively different rate to the spot rate, if your bank does not seem to do this then they have nothing to offer you.

The way this works is, someone in Germany pays their money into transferwise German bank account, I pay my pounds into their UK account. We then swap money, I take theirs, they take mine so no conversion actually ever takes place which is why they give you the spot rate and just charge a commission. It's like a matched trade, which is why if you need it asap you need to pay a bit more as it moves you to the top of the queue to take the other parties money. If you're doing a transfer to a more obscure currency it could in theory take longer due to less activity.

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The point of these brokers is they give you the spot rate, or very close to it. My experience of UK->Germany is the bank gives you a massively different rate to the spot rate, if your bank does not seem to do this then they have nothing to offer you.

The way this works is, someone in Germany pays their money into transferwise German bank account, I pay my pounds into their UK account. We then swap money, I take theirs, they take mine so no conversion actually ever takes place which is why they give you the spot rate and just charge a commission. It's like a matched trade, which is why if you need it asap you need to pay a bit more as it moves you to the top of the queue to take the other parties money. If you're doing a transfer to a more obscure currency it could in theory take longer due to less activity.

Yes, I understand the theory, but for transfers from Germany to UK the 0.5% commission typically charged by the brokers would appear to cost me more than a simple bank transfer. Here's a concrete example:

On 10/03/2014, I transferred EUR 3,500 from my German bank account to my UK bank account. For this, I was charged EUR 3.55, and I received GBP 2,912.35, giving an exchange rate of 1.2018 EUR/GBP.

The BoE spot rate on this day was 1.1984 EUR/GBP, so if I'd used a broker giving spot rate and charging a 0.5% commission, I'd have ended up with 3,500 / 1.1984 * 0.995 = GBP 2905.96. Taking into account the EUR 3.55 (GBP 2.96) fee charged by my German bank, I would have been GBP 3.43 worse off had I used the broker. Then there's also the additional risk and complication of dealing with a third party.

So, for now at least, it looks like simple bank transfer remains the best option for transferring cash from Germany to the UK. Obviously YMMV for other transfers.

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Oanda is a good one. Need confirmed ID, US $ bank account and confirmed UK £ bank account (scanned document upload to their website). You don't get spot rate and there is a transaction fee but the overall exchange rate on a large transaction should comfortably exceed anything the bank can offer.

I got an email from them saying they "no longer offer cash conversions". Only trades are dealt with. I'm not sure what exactly that means because isn't a trade a cash conversion anyway? :huh:

www.transferwise.com

Used them in the past, great rates. You get your first transfer free if you use a referral link which I can give you.

Mind PMing me that link? :)

Currency Fair comes next if something goes wrong...

The BoE spot rate on this day was 1.1984 EUR/GBP, so if I'd used a broker giving spot rate and charging a 0.5% commission, I'd have ended up with 3,500 / 1.1984 * 0.995 = GBP 2905.96. Taking into account the EUR 3.55 (GBP 2.96) fee charged by my German bank, I would have been GBP 3.43 worse off had I used the broker.

Interesting. But this also makes the whole process more tiresome. Now I'll have to compare rates and do my homework instead of just using a broker :D

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Uh oh, doesn't look like Transferwise deals with USD bank transfers yet, only payments in USD.

next....

I have an acquaintance in Lagos who can do this for you, just wire him the money and he will take care of everything... :D

---

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This has been touched on before no doubt, but usually the other way round i.e. pounds to dollars.

Aye.

I manage that pounds-to-dollars transaction very easily by working for an American corporation.

Oh, and shopping at ASDA - which is practically the local 'company store' seeing it's the only 'big-four' supermarket located in my immediate vicinity...

:(

http://www.youtube.com/watch?v=bUKXxGoXR9I

XYY

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Uh oh, doesn't look like Transferwise deals with USD bank transfers yet, only payments in USD.

next....

Don't think that's quite right:

https://transferwise.com/support/usd

Conversion from USD:

We can make conversions from USD into another currency that we support, however we would need to manually enable this option on your TransferWise account.

When converting from USD the deposit is made via SWIFT payment to our USD-denominated account based in Europe.

As this is a little different to how we accept deposits for most of our currencies, we ask that you contact our Support team to enable this feature for your TransferWise account- the best option is just send us an email (support@transferwise.com).

I'm guessing it's due to some US money laundering regulations....

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