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[MSE Dan]

As part of the

Foreign Currency: Sending Money Abroad guide.

We discuss using specialised FX brokers as a way of sending large amounts of money overseas. If you've read the article and have any feedback, hints or tips, please click reply and let us know.

[shoi]

You have to go through a tortuous Identity verification process with all these companies, which can take a few days if you've moved house a bit or if you're not British etc etc. Typically they won't even quote a rate until you've done all this. So it's best to do this well in advance.

Make sure the money you are selling is actually available, and that your bank/BS is prepared to send it to the broker at your command. (For instance the BS might only send funds to your "registered" bank, your bank may have a daily limit of 5 or 10K)

Most of the FX brokers will offer a better rate if you ask. ie do haggle (say you have a better quote from someone else). So register with a few of them, not just one.

The only one I know which has a web page with up-to-date rates is
http://www.ozforex.com.au/cgi-bin/sellQuotes.asp

Steve

PS Be lucky - the pound has dropped another 2 eurocents today making me unlucky.

[Robin00]

The ID process varies from company to company - for example some have electronic verification which means normally there is no need to send any documents in at all if you have a UK address. Ask before you open an account!

[Pobbles]

I've used HIFX a few times,to send dosh to my Spanish bank account.They are very competitive,and do exactly what it says on the tin.They guarantee that the receiving bank doesn't charge fees to receive what you send.(Some banks in Spain charge quite a bit for this)

[shoi]

For me HiFX have always offered much worse rates compared to Moneycorp, Ozforex. So much so I've given up asking. But I agree they didn't mess up (so far none of them have thank heavens)

[station]

I have used Moneycorp for 5 years and have been extreemly pleased by their efficiency and the competative exhcnage rates.

You can also set up regular payments as well as the usual one off transfers.

For anyone who has to transfer larger sums abroad then I don't think you can go far wrong with this company.

[Cuzzy]

I has used Moneycorp for 3 years - normally up against Travelex when comparing rates. Never had a problem with them - easy process and normally have the better rates of the 2.

[Simplastic]

Thought I would share my experiences too. I usually move about £1000 every 6 weeks from the UK to the Eurozone.

For the last 18 months I have been using FXAWorld.com which is a sort of currency auction. You usually get the interbank rate, which is the best rate available, and pay a very small commision, plus £10 SWIFT fee.

The first 12 months went swimmingly with FXA and I was very happy. However, the last 6 months their service has gone downhill and I have had to keep emailing reminders to make my SWIFT transfers. Last week I made a trade and they kept 'forgetting' to make the transfer and I had to email and telephone them 7 times before it finally got done. They never rang me back as promised. The whole transaction took 2 weeks! I am currently seeking some compensation from them as I ran out of cash because of them and endured a lot of stress.

This is a real shame as their concept and costs are fantastic. I am now reluctantly having to find a more expensive but hopefully more reliable Forex company.

I just had a look at Moneycorp, but they only do transfers of more than £5000. Can anyone recommend a low cost forex for GBP to Euro?

[Simplastic]

Firstly, FXAWorld - do not touch with a bargepole!!! I wrote a very long letter of complaint to the manager - took me about 2 hours to write. I never even got an acknowledgement. This company has cost me so much stress already that I decided that to try and chase up a letter of complaint was only going to raise my blood pressure even further. I thought it better simply to let other people know how utterly useless they have become.

I have now done quite a bit of legwork with other forex traders, and here are my results on a £1000 transfer to Euros:

First Direct (my bank) @ 10:48am
SWIFT fee (2 day) = £25
£975 = €1031.55

Sepa fee (4 day) = £9
£991 = €1048.48

Currencies.co.uk @ 10:41am
SWIFT fee = £15
Bank receiving charge = £12
£973 = €1037.22

MoneyCorp @ 10:30am
SWIFT fee = £15
£985 = 1037.70

As you can see, today there is not much in it between the three, and if I'm not in a rush then my bank actually gives me the best rate. I was also hoping to add HiFX and CurrenciesDirect but haven't managed to get my accounts fully open just yet and the exchange rate is fluctuating too much today for any further comparisons to work. Most companies were offering a same day service before 12pm or 2pm except the bank (ironically). CurrenciesDirect told me that regular transfers attract a better exchange rate and are free from fees but that the whole process takes 6 working days.

Note though that (for money laundering purposes - apparently!) none of them would give me a spot rate without me opening an account. This process takes a couple of working days if you live outside the UK as you need to send in documentation. Note also that CurrenciesDirect interpret the laundering regs even stronger and need authenticated copies of documents sending by post, so opening an account with them will take about a week.

I hope this helps you!

Simplastic

[jasperc]

I have been using FXA World for a couple of years to buy currency for my business. The basic concept is fantastic and until about 6 months ago all was fine. But the customer service has completely fallen apart and over the last couple of weeks I was seriously concerned that they weren't going to action several transfer requests I had made. It took threats of legal action ot get them to fulfill their obligations. I have given them ample opportunity to explain the delays but they just won't communicate. Best left alone until they sort themselves out.

[islandbums]

hi I am having problems getting my money back from FXAWorld, they are not responding to my calls or emails. Does anyone else have this experience and does anyone have any idea how I can get my money back from them?
Thanks

[nzseries1]

Another vote for HiFX. Their online system is awesome, but it took months to set up the account because their ID checking was so extensive.

[97trophy]

Xetrade.com

I have been using them for 18 months and they are superb!

I transfer money to the USA and they do not charge for a 3 day bank transfer. Wires cost £12.

[BritRael]

I used Baydon Hill to exchange a lot of USD to GBP. I was very pleased with their fast service and the rate that I agreed. There were also no fee's, as was promised.

[schmoke]

I too have been having problems with FXA world.

I asked for a payment to be made two weeks ago. I've emailed and phoned repeatedly. Often the phone just rings off, but when I do get through I am told there is no one available in the payments department and I'm asked to leave a message. It seems that the payments department is always late for work, or out at lunch.

None of my messages have been responded too.

Once I manged to speak to someone in payments - he told me (coincidentally?) that payment was due to be made that day. Needless to say it was not.

DO NOT USE FXA WORLD!

[Popeyesail]

Also experiencing problems with this company. My payment was due to be made on in mid April and still hasnt been made yet. First I was told that they were having staff problems. When I call I am transferred to an associate company called Zipp Card who sent me an e-mail first to say that their year end audit has uncovered some internal control problems which would be sorted out by 6th May. Tried repeatedly to contact them but now no response.

They are still, in my opinion, illegally accepting trades.

I shall now have to resort to legal action to recover my money.

Give this company a wide berth.

[blueberrypie]

Seconding the recommendation for XE.com. Often fee-free, and when there are fees, they're low. They've a best-rate guarantee, and the customer service is second to none. I've used them since early 2003 and have regularly been impressed, never disappointed.

On one occasion, I transferred the proceeds of a house sale in the UK to a Canadian bank. The money left my UK bank on Thursday afternoon, and was in my Canadian bank account by the time I woke up on Friday morning.

On another occasion, I transferred a large sum from a Canadian bank to a UK bank - or I intended to. What I actually did was send the money to another Canadian bank account which I'd actually closed since setting it up on my XE account. I phoned XE in a panic (I needed the money to complete a house purchase!) - the person I spoke to explained that the money would bounce back from the closed account and they would then forward it to the correct account. He took my mobile phone number and rang me (from Canada) at least once a day until this was all sorted out. Within five minutes of the money being sent from them to my UK bank, he'd rung to tell me it was done - and he rang the next morning to check it had arrived okay and that I had no further concerns.

[deviant_goof]

I got some useful info about dealing with these brokers, alledgedly from an ex broker in this market - from the currency guide .co.uk when i sold my florida property last year. Be careful as these firms are unregulated by the fsa regardless of what they tell you.

[islandbums]

Warning about FXAWorld
FXA is a UK (London) based company which has had many customer complaints against it. Seems once you deposit funds with them, into their Barclays bank account, supposedly for foreign currency conversion, then on to your bank, well, that's the last you will see of your money. The person behind the enterprise is Vejay Kumar, Managing Director. Kumar is also the person behind the new enterprize known as Zipp Card. In fact, calls to FXA are answered be employees of Zipp Card. That start up tries to give the impression it takes money from the poor of the world and then lets them use the card for purchases. Begs the question, how reliable can any company with such a questionable ancestry be? Will the poor ever see their money? Another curiosity is that FXA web site, through which it does business, prominently displays the logo of another enterprise, of which Mr. Kumar is associated. Called CBC, or Commonwealth Business Council, it also wants to impress its concern for poorer nations, has many well known business personalities as front men, and boasts partnership with the government of the United Kingdom. What should we make of that?

[Pshemek]

This company is a scam. I have used them for 4 years already, very good service but last month I tried to exchange GBP 5k and the money got stuck. I had to go to the police and report a fraud then they launched an investigation and the money finally went through. DO NOT USE THEM ANY MORE!!!