Reliable foreign exchange brokers?

SpeedyTurtle_2

Hi All,
I am new to the forum and posting here the first time so please pardon me if I make some mistake regarding the forum norms.

I have to transfer a relatively significant amount abroad to buy a property, have been looking for some good foreign currency broker. On some other posts, MoneyCorp, HIFX, World First, Torfx and Currencies Direct are mentioned as FSA regulated (not FSA registered). I have also read horror stories about crown money exchange going bust. I want to know:

1. Are the above companies really considered reliable.
2. What happens if I transfer money through one of them and the
company goes into administration.
3. Are there any other companies which I can include in the above
list to get the quote.

Many thanks,
ST

Baldur

Have you read the relevant article on the main site?

jonesMUFCforever

Take care see the thread about Crown - the firm which went bankrupt where there was no protection for customers!

SpeedyTurtle_2

Thanks guys for replies, thats exactly what I want to know. Will my remittance be protected if I use any of these companies, if yes what is the level and nature of the protection.

SpeedyTurtle_2

Baldur wrote: »

Have you read the relevant .....

Ya I have read the article though it discusses very little about relatively large remittances, mine would be in access of £30k.

Baldur

SpeedyTurtle wrote: »

Ya I have read the article though it discusses very little about relatively large remittances, mine would be in access of £30k.

The relevant section (step 4) relates to house and other high value purchases abroad via FX Brokers:

Warning, FX brokers are unregulated …

Unlike banks, currency exchange businesses don't have to be regulated by the FSA so there’s always the possibility of problems. Yet the big established businesses tend to have good reputations and as they pay good rates they should be the best bet, though there are NO guarantees.

Knowing this, these companies work hard to prove their stability, and a little research should bear that out. HiFX, for example, stores your money in a Barclays account while it’s in transit before it hits your account overseas, to ensure it is safe. See a full checklist of questions to ask.

There is no statutory protection, in the sense of the FSCS protection for deposits & investments - hence the caveats in the article.

missile

You might like to regard the extra cost of using your bank as an insurance premium that your money is safe.

If you are transferring to spain, I would suggest you get a Barclays.es account. You can pay in a UK sterling cheque. They do not charge a fee and exchange rate is very good.

SpeedyTurtle_2

Thanks everybody for the valuable comments and advice, it really is helpful. I will use my own bank to arrange for the money transfer because I don't want to take any chances no matter how miniscule it is.

Thanks a lot once again.

missile

SpeedyTurtle wrote: »

... I will use my own bank ....

May I suggest you ask your bank for a quote and do check what fees will be charged by the receiving bank.

You can ask for all fees to be paid by the UK bank. I have found this way it is much cheaper.

SpeedyTurtle_2

missile wrote: »

SpeedyTurtle wrote: »

... I will use my own bank ....

May I suggest you ask your bank for a quote and do check what fees will be charged by the receiving bank.

You can ask for all fees to be paid by the UK bank. I have found this way it is much cheaper.

Thanks Missile. HSBC offers free money transfer between my UK and forgeing account. Surprisngly, the exchange rate offered by them beats the open market exchange rate. Normally, the bank rate is less than the open market rate, if I am not mistaken.

missile

SpeedyTurtle wrote: »

missile wrote: »

SpeedyTurtle wrote: »

... I will use my own bank ....

Thanks Missile. HSBC offers free money transfer between my UK and forgeing account. Surprisngly, the exchange rate offered by them beats the open market exchange rate. Normally, the bank rate is less than the open market rate, if I am not mistaken.

Some banks offer reasonable rates and charges, others have offer poor exchange rates and charge obscure fees. For example BBVA levy a charge every time you deposit money INTO your account.