FairFX or CaxtonFX - Which would be best for me?

ICHAPMAN

Hi,

Like many, until recently I used my Nationwide Debit card when going into Europe.

Now that this isn't the deal that it once was, I'm looking at the options again. I already have a Nationwide Credit Card which I will continue to use in some cases when Traveling.

My requirement is fairly simple I think. I want to be able to load up the account with cash prior to traveling and then be able to withdraw an amount (not all) from a local ATM in the country I'm in. Generally this will be Europe.

From reading this sites Prepaid card advisory (http://www.moneysavingexpert.com/travel/cheap-travel-money#prepaid), it would seem that they favour the FairFX card as a replacement for the Nationwide. However I note that the FairFX card will charge me €1.50 per withdrawal, whilst the Caxton FX card does not.

Given that my use will virtually be exclusively card withdrawals, would I still be correct to opt for the FairFX card given that it has a better exchange rate?.

The area that has confused me on this matter is the statement in the advisory: "However, with FairFx it's the rate on each day you load up (not spend) that counts". If I'm understanding this correctly, all withdrawals are based on the exchange rate that the money was loaded onto the card - rather than the rate as you withdraw?

There isn't a similar statement in the CaxtonFX description, thus I'm assuming that in CaxtonFX's case the rate of a withdrawal is based on CaxtonFX's exchange rate at that momeny/day. Whilst CaxtonFX has a worse exchange rate when compared to FairFX, could this effectively mean I could end up with a better deal (on the basis that the exchange rate has improved since the card was loaded)?.

Thanks for any advise.

Regards

Iain.

whatusername

Why not consider the Halifax Clarity card for cash advances and clear your statement every month, you will get a far better currency rate.

I agree that the Caxton FX card will give the better option on pre pay because of the ATM transaction fee, the difference in currency exchange really is fractions of a cent normally.

CountryGoose

I'd go with the Clarity. But if you want pre-pay, FairFX Anywhere (the sterling card) is what you need. No ATM fees. A flat 1.5% fee on anything you draw/spend. Mastercard exchange rate.

ICHAPMAN

Hi Both,

Thanks for the responses.

I think I may have issues getting a Clarity card, as I already have a Halifax issued credit card.

I assume with a Prepaid card that I'm limited to be only able to spend/withdraw what you've loaded. With a credit card my concern would be with overspending.

I could look at the Anywhere card, but this feels more expensive to me.

If I was to withdraw €200.00 using the FairFX Euro card then this would cost me €201.50, if I had the Anywhere card however this would cost €203 but with a better exchange rate - although I suspect this doesn't really make-up the difference.

So, why would you recommend the Anywhere card - what am I missing?.

Thanks

Iain.

CountryGoose

The main difference is the rate - with the Sterling Card you are getting the Mastercard Rate - which is about as good a rate as you will ever get unless you're trading large amounts and/or speculating.

The € card loads up at the FairFX rate - which is not the Mastercard rate - it will be lower, but the actual % commission is not published. You are also locked into that rate forever - good if the £ weakens, bad if it doesn't. You changes your money and takes your chances....

If you are off to Europe for two weeks, want to load up £1500 and take it all out in a Eurozone country in large wedges, then this card may be good for you. Your rate is fixed, you'll keep your ATM charges down. However, the FairFX £/€ rate today is 1.1425, vs. the interbank of 1.1592 - Mastercard will be a little lower. When you load the card already you have paid commission to change your money, and will pay a fee for each ATM use. (The difference in rates above is 1.4%, the difference from the mastercard rate may be closer to 1%)

If you are traveling, maybe going to places other than Eurozone (Turkey, Switzerland, Nordics?) and want to take out small wedges from the cash machine (even £10 to pay for a drink at the airport), then the £ card is for you. It gives you the rate on the day, there are no ATM charges and only the flat 1.5% commission. You can save the card for another year and not worry about losing money (though you miss any gains).

If you spend on the € card in $ or £ or whatever, you pay will pay a further FX commission fee.

ICHAPMAN

Thanks. You've convinced me!. I'll apply for the card soon

Regards

Iain

Si67

I'm also a Nationwide customer looking for an alternative, so I've done a quick comparison between Nationwide and 2 main prepaid cards for a typical 300 Euro cash-point withdrawal.

The comparison was based on a snapshot of the exchange rates today, 26th November 2010.

Despite introducing charges, Nationwide is still not that bad, even when compared to these prepaid cards.

I tried to post a simple table to illustrate the results, but this forum doesn't seem to allow such things! I also tried to post links to my sources on which I based the information, but it wouldn't allow that either.

Anyway, the results from the cheapest to the dearest are as follows:

FairFX Euro card
Cost for 300 Euros = £259.35
Rate = 1.1625
Charge = 1.5 Euros

CaxtonFX Euro card
Cost for 300 Euros = £259.74
Rate = 1.1550
Charge = nil

Nationwide Debit card
Cost for 300 Euros = £260.23
Rate = 1.1804*
Charge = 2% + £1

FairFX Anywhere card
Cost for 300 Euros = £261.93
Rate = 1.1625
Charge = 1.50%

CaxtonFX Global Traveller card
Cost for 300 Euros = £266.23
Rate = 1.1550
Charge = 2.5% FX mark-up


*Visa wholesale rate on 26th November


Obviously I could be missing something; if so please let me know!!

Baldur

Si67 wrote: »

FairFX Anywhere card
Cost for 300 Euros = £261.93
Rate = 1.1625
Charge = 1.50%

Obviously I could be missing something; if so please let me know!!

The FairFX Anywhere Card uses the Mastercard rate applicable on the date of transaction (1.1884 for 26/11/2010) rather than FairFX's own exchange rate.

With the 1.5% charge, that would make the €300 transaction cost approximately £256.23, according to my less than perfect maths.

Si67

That is good (& your maths agree with mine!).

I was thinking of getting a CaxtonFX Global Traveller card for sterling transactions only (Ryanair!). Whilst doing so, I thought I'd may as well get a CaxtonFX euro card for use in Eurozone ATMs (ok, FairFX Euro card is slightly better and Nationwide is slightly worse, but there's not much in it).

I'm a bit curious as to why FairFX would actually give a better rate than the one they advertise though. Could you possibly post a reference link?

Ta!

Baldur

Si67 wrote: »

That is good (& your maths agree with mine!).

I was thinking of getting a CaxtonFX Global Traveller card for sterling transactions only (Ryanair!). Whilst doing so, I thought I'd may as well get a CaxtonFX euro card for use in Eurozone ATMs (ok, FairFX Euro card is slightly better and Nationwide is slightly worse, but there's not much in it).

I'm a bit curious as to why FairFX would actually give a better rate than the one they advertise though. Could you possibly post a reference link?

With the Anywhere card, unlike their Dollar & Euro cards, you are not fixing your card balance at their prevailing rate on the date of top up.

The Mastercard rate for the date of transaction/processing is used - hence the 1.5% on all transactions (even in the UK), rather than just on ATM withdrawals, which is the case with the $ and € cards.

https://www.fairfx.com/cardselection#anywherecard

It's essentially a FairFX Prepaid MasterCard® in Pounds Sterling, with funds being converted to the appropriate currency at the point of sale. Unlike some of our competitors, we don't mark up the prevailing interbank exchange rate!

See the following link for a comparison of the FairFX Anywhere and other Sterling pre-paid cards - http://www.currencyexchange-uk.co.uk/index.php/travel-cards.html

stilltheone

Si67 wrote: »

That is good (& your maths agree with mine!).

I was thinking of getting a CaxtonFX Global Traveller card for sterling transactions only (Ryanair!). Whilst doing so, I thought I'd may as well get a CaxtonFX euro card for use in Eurozone ATMs (ok, FairFX Euro card is slightly better and Nationwide is slightly worse, but there's not much in it).

I'm a bit curious as to why FairFX would actually give a better rate than the one they advertise though. Could you possibly post a reference link?

Ta!

How can you state that his maths agrees with yours, when he has produced a totally different figure??
Amazing.
You've got your figures wrong for both the Anywhere and the Global Traveller.