Large sum foreign exchange

hiddenmission · 4 December 2017 at 9:02PM

Not sure if this is the correct forum, but grateful for any advice on the best way to exchange 40k in euros which is currently sat in a bank account, into sterling. If I transfer bank to bank, then I am going to get what I imagine will be a poor rate. Would I be better off going through someone like FairFX? Thanks for any tips.

dj1471 · 4 December 2017 at 9:50PM

Have a read of the MSE article, but in short: yes, you definitely want to use a broker:
https://www.moneysavingexpert.com/banking/foreign-currency-exchange#larger

hiddenmission · 4 December 2017 at 10:16PM

Thanks for the tip, very helpful. My situation is slightly different as the money is in a euro account in this country. I guess the best thing is to get a few quotes.

Voyager2002 · 4 December 2017 at 10:23PM

Would you care to post details of the account, and what options the bank itself offers? And do you have (or could you open) an account in a country that uses the Euro, and then transfer it there?

The best option for changing money within a bank account that I have found is the account offered by Fineco Bank. However, you might be charged a stupid amount moving the money into a Fineco Euro account.

J_B · 4 December 2017 at 10:33PM

I have used https://www.currencyfair.com/ for several years now.
Decent exchange rates and a flat £/€3 fee

brianposter · 4 December 2017 at 11:48PM

Opening an Interactive Brokers account might save you a few pounds.

eDicky · 5 December 2017 at 4:51AM

For a large amount the exchange rate, its percentage spread from the mid-rate, becomes much more important than the fixed fee charged by the bank to move it. So your bank will charge a fee to send it to a broker or another euro account such as Fineco, but that's not really significant and you will escape having your bank convert at their rates, taking 3+% of your money.

You can ask the best choice brokers if they can accept payment from a euro account in the UK, many can't. Compare their rates and fees for that amount against the mid-market rate shown on xe.com - call the broker to negotiate a better rate for that amount if they don't give the interbank (mid-market) rate.

Those that do give the mid-rate and charge a percentage fee, such as TransferWise, may not be as good for a large sum as those who put a small margin on the rate, with little or no fee involved, such as CurrencyFair.

I don't think it's a good idea to keep a euro account with a UK bank, being both hard to access your money (no card) and to escape their terrible rates when you need to convert.

alwaysskint96 · 5 December 2017 at 11:16AM

cant you get a revolut card- upload from euro account, use app to change to sterling and withdraw to sterling account, Although i dont know the limits

hiddenmission · 5 December 2017 at 9:19PM

Thanks for the replies folks. The cash is in a Lloyds Isle of Man account in Euros. They charge no fee to transfer to a Lloyds account. So I guess it's just a question of comparing with a transfer via a broker on exchange rates (and any fee charged by the broker). Although I'm waiting for the exchange rate to improve, as it's not too great at the moment.

Large sum foreign exchange

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