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Cheap Ways To Tranfer Currency

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Happy New Year Everyone!

A while ago there was some discussion of cheap ways to tranfer money between currencies. I've had a search but can't locate the thread. Does anyone remember where it was or just have some information on it? All help much appreciated.

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Assuming you're talking about reasonable sums of money, not just holiday spending, Moneycorp has a good reputation. They're at www.moneycorp.co.uk

Thanks for that. I should have given a bit more context. My partner has recently got work in the UK but needs to be able to tranfer salary into a Danish bank account from time to time without paying extortionate fees.

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I just get a bankers draft from my bank in the UK and pay it into(or get someone else to pay it into) my overseas bank account. The receiving bank should just charge you their standard exchange rate. No fees at all. This works between the UK and New Zealand banks. The only down side is that it can take 1 month for the cheque to clear. I have found this to be by far the cheapest way. Not sure if it works in other countries, but it is worth asking the Danish bank.

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Here in Sweden I often need to access my UK cash.

But unless I'm moving over a thousand pounds, I've found it simpler and cost effective to either buy things in Sweden on my UK credit card, or to withdraw cash at an ATM here in Sweden from my UK debit card.

Barclays Isle of Man has a service for ex-pats where you can go online and make international transfers. But the price of the transfer is the same as usual, not to mention Barclays crap exchange rates and on top there is a 75 pound a year fee for having the account.

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I find the most convenient way of getting cash into diferent currencies is Amex travellers' checks. They are basically insured cash, much easier (and cheaper) than opening a foreign currency bank account. Just walk in and do the deal on your debit card.

British banks are pretty crap at forex transfers. I recall when I lived in Switzerland and earned decent money I could just walk into the local village branch and do the deal in two minutes. The fee was quite small, less than £10 for a thousand quid transfer.

This does not help your partner much, unless she opens a branch with the UBS branch in Leicester Square.

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I believe xe.com is the cheapest and have been around for years?

You have to pay for the wire transfers though.

I use xe.com - it has worked well for me so far.

If I were to start looking now, however, I'd begin with oanda.com as (last time I checked) their spreads were lower and the website is more professional.

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Several ways:

- moneybookers.com: Open two accounts, one with a UK address and in pounds Sterling and one with a NL address in Euro. They charge €0.50 for transfers between accounts and the exchange rate is near interbank rate

- open a bank account with Nationwide and use their debit card to withdraw cash in the NL at an ATM machine. Nationwide is the only UK bank that does not charge cash withdrawal fees or currency exchange loading.

- for larger sums, get a banker's draft in Euro from your UK bank and pay it into the NL bank account. Banker's drafts cost about £10, so it needs to be a sizeable sum. Insist on an exchange rate quote and compare to the interbank market rate (see below). If more than 0.5%, insist on a better rate (usually only works for very large sums >£10,000) or walk away.

With any service, be careful about the exchange rate. Most fees are hidden in an exchange rate loading (the difference between the exchange rate you get and the market rate). For example, TTRTR mentions using his credit card in Sweden, but unless it's a Nationwide card, you are looking at exchange rate loading of up to 3% with credit cards.

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With any service, be careful about the exchange rate. Most fees are hidden in an exchange rate loading (the difference between the exchange rate you get and the market rate). For example, TTRTR mentions using his credit card in Sweden, but unless it's a Nationwide card, you are looking at exchange rate loading of up to 3% with credit cards.

Like I said, only good for small amounts.

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Many thanks everyone - very useful information.

Sorry for the delay in replying. We had a major virus attack. Watch out for this one. It operates through a weakness in MS Internet Explorer. Key terms are "Zero-day vulnerability realted to Windows WMF files". As far as I know MS has not found a patch yet.

Do NOT say yes to anything that appears when using MS Explorer. For me it was a fake MS failure report but I guess it could take many forms. MS Explorer is very vulnerable. Netscape and Firefox less so (I'm using Firefox now) - but still don't say yes to anything unless you are 110% confident..

Further info; www.microsoft.com/technet/security/advisory/912840.mspx

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Everbank maybe worth a look, multicurrency accounts. Not had one but seen them recommended before.

A brief summary of the suggestions so far is below. There is not much information and it would be very helpful if anyone who has used any of the services could add what the spread and any other charges were. Thanks!

There are many companies offering curency exchange in the UK. One thing they seem to have in common is that they do not say anything meaningful about their spreads. Some go as far as pointing out customers will be told the exchange rate before any trade takes place and can choose to cancel the transaction then. However, they are less keen to point out that by that stage said customers would have had to register, prove their identity, and fund the account. I find it difficult to see a reasonable explanation for this.

Anyone who wants to invest an STR fund in EUR may want to consider a Money Market fund. They can be found on http://www.morningstar.co.uk/ but only a few are easily accessible to UK investors. They all seem to be offshore, so good for non-domiciled taxpayers and acceptable to those who already fill in a tax return. For others they are probably too much bother.

Fidelity provide two such funds through their supermarket, one of which has acceptable charges. A paper application is needed as well as payment by cheque. They will not say what their spread is even when asked in writing, although they will provide a long and polite answer. I can see why they would not want to make precise statements about the future but I made it clear that an example of an achieved spread on any past date would have been sufficient as an indication. In the end I decided to invest a small amount and work out how much the spread was myself. The GBP/EUR rate happened to be volatile that day (remember, they insist on cheques) so my best *quess* was 0.75% but this could be *way* out. They say they pool all customer transactions into one big trade, so the rate I got could also be affected by an unusual volume of trade. On the plus side, they allow the investment to be made and/or withdrawn in EUR, so this might be useful as a way of exchanging currencies. They will also tell you the rate and give you an option to decline for large trades but by that stage your money is offshore and it may be a pain taxwise to get it back, not to mention the lost interest in the meantime. My conclusion was that I would not add to the investment unless I for some reason wanted to make small regular payments.

Investec have an EUR money market account denominated in UKP. This is not useful to me so I don't know the details but you can have a look at their website http://www.investecfunds.com , especially if you expect to remit the money back to the UK at some point.

MoD

The summary: (please do add any details you know, particulary any examples of achieved spreads)

http://www.housepricecrash.co.uk/forum/ind...79&hl=everbank#

everbank.com

Application form asks for US Social Security number. There is no indication on the website that they are used to dealing with UK customers. Does anyone know any better?

Later in the same thread

www.nationwideinternational.com

Anecdotal evidence later still in the thread suggests the spread is 1.6%. This would be fine for the sort of amounts needed to pay for a few continental breakfasts but is simply obscene for investment amounts, particularly if incurred twice.

In this thread:

moneycorp.com

FSA regulated, website has relevant info but only ambiguous statements about spreads. Recommended byScipio_Africanus.

xe.com

Has a meaningless 'best rate guarantee'. FSA search does not find 'xtrade' or 'xetrade', and refuses to accept 'xe' becuase it is too short to search for (but they may well be registered under another name). They know about BACS and CHAPS, so can deal with UK customers. Recommended by brainclamp.

moneybookers.com

FSA regulated. They offer cheap transfers (EUR 0.5), so will presumably have a wide spread. Recommended by Bubble Pricker

Nationwide

Does not load exhange rate on foreign CC transactions. I suppose there are limits on how much can be withdrawn and per-widrawal fees in at least some countries, however certainly better than other CCs. If anyone has used this method to convert an investment-sized amount then please share your experience.

Bankers draft in EUR

I believe these can take a long time to cash is some countries. I have no idea which UK banks could be persuaded to do this for 0.5% or less but Bubble Pricker may be able to advise.

edit: I somehow managed to post two identical copies :angry:

Edited by MongerOfDoom

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  • 302 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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