Is my bank ripping me off on international money transfers??

blueberrypie

Would also recommend XETrade - very fast, fantastic customer service, a best-rate guarantee, and no fees for many transfers (and where there are fees, they are reasonable fees). Have been using them since about 2002 and have never been disappointed - in fact I've often been hugely impressed by the service.

jonesMUFCforever

chookie1 wrote: »

Mmm quite surprised how many people are on the bank's side on this one!

Don't get me wrong, I'm not suggesting that it should be free. What gets me is two things

- the fixed transactional cost for a bank is much the same whatever the size of transaction - it takes just as much time to type in $200 as $2,000 or $20,000 - yet because the cost is a % (and I'm talking here about cost in the exchange rate you get not a fixed 10 pounds or whatever) bigger transactions cost you more. Anyway in most cases the person who enters the transaction on the computer is me through online banking or a credit card. And the charge actually isn't clearly marked because they certainly don't advertise what the difference will be between their rate and the FX "spot" market rate.

- and this difference between their rate and the market rate is *huge*. Fair enough to a degree on a tiny $50 transaction - you wouldn't expect to get the wholesale rate and the cost isn't that much in real money (although in reality what they do is bundle lots of these transactions up and do them in the wholesale market or just offset between people going different directions and make money both ways). But if I want to eg buy a house in Florida and need to buy $100,000 which you could do in the wholesale market you still get a terrible rate from any high street bank. Yes I could go to a specialist broker but why should I have to other than my bank takes me for a mug.

Anyhow - rant over!

If I was buying $100,000 I would ask the bank what their forward exchange contract rate would be. This is free to set up.

will-in-estoril

Banks ripping customers off? Surely not!

For larger amounts or regular transfers I would recommend Foreign Currency Direct, http://www.currencies.co.uk/

I used them about 5 years ago. Completely satsfied.

jonesMUFCforever

will-in-estoril wrote: »

Banks ripping customers off? Surely not!

For larger amounts or regular transfers I would recommend Foreign Currency Direct, http://www.currencies.co.uk/

I used them about 5 years ago. Completely satsfied.

I have never used them.

However if I wanted to - I would want to know that my money would be safe with them -it could be that they do have safeguards but I could not see any after having just a quick glance at the website.