Cheapest way to convert £150k into Euro

mok95

I am moving back to Spain and will have a relatively large sum of money to convert into Euro sometime in the summer.

I would really appreciated your advise on:

1. what's the cheapest (and safest!) way to convert from one currency to the other?
2. would you do it in one go, or in tranches?
3. any reason for leaving a part of the savings here?

Thank you in advance!

cashbackproblems

iv heard good reviews of http://www.hifx.co.uk/ where you can fix the exchange rate for up to a year and there are no transaction charges, maybe others can recommend similar online services?

I think you might also need to open an account in that country.

mok95

Thank you for that. I had also seen caxtonfx.com, which seems to provide similar services.

If they all operate comission-free, what's the difference between them? will they offer me different exchange rates?

Thanks again for the help.

JamesU

mok95 wrote: »

I am moving back to Spain and will have a relatively large sum of money to convert into Euro sometime in the summer.

I would really appreciated your advise on:

1. what's the cheapest (and safest!) way to convert from one currency to the other?
2. would you do it in one go, or in tranches?
3. any reason for leaving a part of the savings here?

Thank you in advance!

Q1:
Posted the info below for a similar thread some time ago which might be useful on options with high street banks if they are competitive relative to CashBack's post in the thread above:

In the UK, Barclays could easily meet your needs. It is straightforward to hold balances in both Euro and Sterling accounts, transactional costs on the exchange between currencies in the accounts are competitive relative to other high street banks, and the whole process is easy to do any working day over the phone using a dedicated number. Very importantly, the exact rate of exchange is specified on the phone there and then, a serious consideration on larger currency transactions. Some banks e.g. Lloyds provide a similar facility but the exchange rate you get on the day can be less well-defined and you can loose out a lot during the currency exchange due to their "minor fluctuations" during the day when the cash is switched, and this always work to the bank’s advantage. Others may recommend alternative UK banks on the transactional side, just be sure you choose one that accurately defines the exchange rate. Obviously, deciding on which currency to hold as the best option depending on future exchange rate prospects is a personal choice. Barclays is well established in Spain and it is quite likely you can set up a similar facility there, Spanish link to Barclays below.

As you may become UK non-resident I guess you might also need to be familiar with any tax efficient strategies for minimizing income tax and CGT between the countries. CGT may be relevant when you are exchanging between the currencies and make a profit. And of course, from the UK perspective there is IHT to consider despite the fact you may become UK non-resident. The transactional side is pretty trivial, but the tax considerations are probably more important in the longer term. Link below on an excellent book on the taxation of UK non-residents which may help if you need clarification on any of these matters.

https://www.barclays.es/publico/cont...jsp?lang=en_UK

http://www.taxcafe.co.uk/non-resident-offshore-tax.html

Q2:
Your choice. May also be a £10K transactional limit per day still in operation for money laundering purposes.

Q3:
Once you are non-UK resident, more difficult to open a UK bank account if you need one here.

JamesU

Jonbvn

There is an MSE webpage on this very subject.

http://www.moneysavingexpert.com/banking/foreign-currency-exchange#step4

There are several FX brokers:

HIFX*, Currencies Direct*, Moneycorp, Foreign Currency Direct,

JamesU

Jonbvn wrote: »

There is an MSE webpage on this very subject.

http://www.moneysavingexpert.com/banking/foreign-currency-exchange#step4

There are several FX brokers:

HIFX*, Currencies Direct*, Moneycorp, Foreign Currency Direct,

Never seen this link! Useful, thanks.

JamesU

Toe-Jam

JamesU wrote: »

Never seen this link! Useful, thanks.

JamesU

https://www.xe.com are good also.

JasX

mok95 wrote: »

3. any reason for leaving a part of the savings here?

given the pounds already been trashed and hopefully might be on the way up, meanwhile the euro seems to be getting trashed atm as the current greek tragedy plays out and moves lower in the markets there could be an argument for holding at least some back in case the exchange rate improves.

But as ever usual health warnings apply..... things could go up or down.... you may end up with less if you hold off in order to 'speculate' on what the exchange rates will do in future.... you can very possibly lose money less relying on opinions you read on odd-ball forums on the internet.... yaddda yadda yadda..... :A

JamesU

JasX wrote: »

given the pounds already been trashed and hopefully might be on the way up, meanwhile the euro seems to be getting trashed atm as the current greek tragedy plays out and moves lower in the markets there could be an argument for holding at least some back in case the exchange rate improves.

But as ever usual health warnings apply..... things could go up or down.... you may end up with less if you hold off in order to 'speculate' on what the exchange rates will do in future.... you can very possibly lose money less relying on opinions you read on odd-ball forums on the internet.... yaddda yadda yadda..... :A

Speculation aside, often a lifestyle choice. Very useful to have £, Eur and $ accounts.

JamesU

BritRael

I converted a large sum a couple of years ago using a forex company: Baydon Hill, and would highly recommend them. They agreed a commission-free rate, told me exactly to the penny what I would get and a couple of days later, that's what I got

If you wanted to haggle, I think you'd have to set up several forex accounts (free to set up online) as once you've made a 'deal', you've got to transfer the funds to them within a short specified period (4 days I think it was). In your case I think that'd be the best route as just a small change in the rate you agree will make a huge difference to the final amount that you'll get.