where can i get the best exchange rate?

robthomas_201

I have just bought a property in Spain and now have to send over 28,000 Euro's to my spanish bank account in 20 days. Does anyone know where I can get the best exchange rate? Someone has recommended https://www.currenciesdirect.com. I will be doing some of my own research before committing to a broker but I can only do so much in 20 days and would appreciate any help from anyone here who knows better. Thanks in advance

worldtraveller

I would have thought that the "cheapest" and SAFEST way would be to do a straight transfer from your U.K. bank account to your Spanish bank account in either Sterling or Euros. If it can wait a few days you can do a "slower" transfer, which will be cheaper. I suggest you ask both account holding banks the following:

(1) The costs and/or commissions for (a) the transfer in Sterling GBP from your U.K. bank to the Spanish account and (b) the transfer from your U.K. bank in Euros (also check the exchange rate your U.K. bank offer for this option - this will be variable, but will give you an idea if reasonable or not, but make sure you tell them the approx. value!). Ask them for the various options on the speed of the transfer.

Then, (2) ask your Spanish bank for their charges and/or commissions for handling incoming (tell them approx. value!) transfers in both Sterling GBP & Euros from your U.K. bank. In the case of Sterling GBP, they will probably convert automatically to Euros (I'm assuming you have a Euro account in Spain). Ask them for current exchange rate they would use (obviously these will vary, but it should give you a good idea if they are reasonable or not).

With the above, you should be able to see if better to transfer GBP or Euros and various costs involved on both sides.

I would personally avoid a broker as this will almost certainly cost you more in terms of commission and would be less secure.

DiggingOut

worldtraveller wrote:

I would personally avoid a broker as this will almost certainly cost you more in terms of commission and would be less secure.

Banks are almost always far more expensive than brokers. Discussion here

edit: Should have added, I use HIFX, and so far have been quite happy. But there are others discussed on that thread. I don't know much about currenciesdirect, but do know they were around some months ago, and longevity is a good thing, I suppose.

worldtraveller

..I would accept, from reading the thread that a broker may well be cheaper, but I would nevertheless still question the safety/security of such a transaction unless your funds are clearly legally guaranteed/protected in the case of default on the part of the broker or their company failure. I would personally prefer the security and safety of dealing with the "High Street" banks, despite the extra cost, although I would shop around within these. I cannot comment on any Spanish bank, if you are using one in the transaction.

Natelle_2

May I suggest you look at the following link I've put on the referrals forum for your information.

http://forums.moneysavingexpert.com/showthread.html?p=337674#post337674

We found the service good and certainly cheaper than using our own bank.

DiggingOut

If you want the security of using a bank, Citibank is generally better than the others. It isn't a "high street" bank but I don't think they are going to run away with your money. Their customer service reportedly leaves a lot to be desired....

If you save 2% by using a broker, that's 560 euro. That's the approximate price of certainty.

For those who have to do FX frequently, it makes sense to find one you can trust and use them. For a one-off, it really depends on whether the 560 euro is worth it to you or not.

I've used HIFX for months now.

robthomas_201

Thanks to all that have posted replies, it's appreciated. I will almost certainly be using a broker as they offer better rates of exchange than the banks. I know currenciesdirect do not charge commission for transfers over £5000 and yesterday their rate was 1.44 euro's to the pound. I will look at the other threads now and the HIFX site. When I make my decision I'll let you all know. If you find any better ways in the meantime please let me know. Thanks