Transferwise thread

Eduardo001

Archi,

Transferwise use the 'real mid market exchange rate' - ie. the spot rate with no spread on either side:

What is the real mid-market exchange rate that TransferWise uses?
All exchanges on TransferWise are done using what we call the real rate. This is the mid-market rate (sometimes also called the interbank rate or spot rate) used in global financial markets.

The mid-market rate is the rate that is between the BUY and SELL rates you usually see, it is the rate that is used in the global financial markets. Most banks and brokers hide this from you by marking it up significantly - to their own benefit. We apply the mid-market rate at the time of matching, i.e. after we have received your deposit and activated the payment for conversion.

The rates used in TransferWise are aggregated from a number of markets and updated regularly through the day. You can check against finance.yahoo.com, xe.com or oanda.com to confirm that the rate used on TransferWise is close to the current market rate.


For other providers to beat this rate they would effectively have to be operating at a loss.

Run a few tests on fxcompared from sending money from the UK to the USA / Europe etc and you'll be hard pressed to find any provider that beats Transferwise.

Archi_Bald

No doubt you can "run a few tests" in which Transferwise comes top - I can run many where they don't come top.

E.g. £1K from UK to US just now is best via Ukforex - receiving USD 17.52 more than with Transferwise, which comes 2nd.

If I transfer £5K, Transferwise is only 5th best, USD 14.51 worse than the best.

£1K or £5K from UK to Oz: Transferwise does not show amongst the top 12.

It's very simple: if people use the comparison sites, they stand a good chance to get the best deal. If they listen to someone who randomly signs up to a forum and only posts to promote one of the many currency transfer services, they might get a worse deal than they could have got.

baby_frogmella

Actually I would say transferwise is best for ALL transfers under £10k as their fees are far lower than their competitors fees. I'm pretty sure the likes of ukforex charge more than ~0.5% in fees.

Archi_Bald

Are you saying the comparison sites are misrepresenting what they suggest are facts?

baby_frogmella

Archi_Bald wrote: »

Are you saying the comparison sites are misrepresenting what they suggest are facts?

I'm saying transferwise beats all comparison sites - unless you're converting 10000's of pounds because transferwise use MID-MARKET exchange rates with low fees ~ 0.5%. You were taken in by the false advertising on ukforex website because only after you sign up do they tell you the exchange rate they use....which is worse than the mid-market rate as shown to non-registered users.

£1000 > USD
Transferwise $1600
http://www.mymoneyspy.com/transfer-currency-to-United%20States/1000-GBP
http://www.fxcompared.com/Content/money-transfer-from-UK-USA-below-3000-amount-1000

£5000 > USD
Transferwise $8000
http://www.mymoneyspy.com/transfer-currency-to-United%20States/5000-GBP
http://www.fxcompared.com/Content/money-transfer-from-UK-USA-above-3000-amount-5000

£10000 > USD
Transferwise $16000
http://www.mymoneyspy.com/transfer-currency-to-United%20States/10000-GBP
http://www.fxcompared.com/Content/money-transfer-from-UK-USA-above-3000-amount-10000

Eduardo001

baby_frogmella wrote: »

I'm saying transferwise beats all comparison sites - unless you're converting 10000's of pounds because transferwise use MID-MARKET exchange rates with low fees ~ 0.5%. You were taken in by the false advertising on ukforex website because only after you sign up do they tell you the exchange rate they use....which is worse than the mid-market rate as shown to non-registered users.

You're spot on Baby Frogmella.

Mid market exchange rates + low fees = winning.

emeraldbugle

I've also used Transferwise for the past 12 months many times.

No problems and great rates.

jamesd

I've used Transferwise for a total of around £10,000 of transfers to Euros so far, over almost a year.

The reason Transferwise tends to beat comparison sites is that it uses the mid market exchange rate, not the buy or sell rate, then adds its explicit fee. Good to also check the comparison sites but for transfers in the two hundred to a few thousand Pounds there's a good chance that Transferwise will end up being the option that pays most. Which is of course why I've been using it.

It can be beaten by such things as negotiated rates for transfers of thousands of Pounds, where some foreign exchange places will do a deal for those who ask. When negotiating do be sure that you're comparing like with like though - the buy and sell prices for a currency will add some cost to you compared to the mid market price that Transferwise uses.

One of the other ways in which Transferwise might not do well is when exchange rates are moving non-trivially. At the time you start a transaction with Transferwise you don't know the exchange rate you'll end up with because that's established at the time each part is matched, not when committing. With conventional services you do know the final rate. If you want to try to predict those moves you might get a better deal with an immediate transfer instead of waiting for Transferwise matching if the exchange rate is moving against you. If the problem is just a non-best exchange rate on the day the exchange happens, Transferwise offers a guarantee to refund the difference in amount received.

oatman

I'm pleased I found this thread. At the moment I'm trying to find the best transfer company. Currently I've narrowed it down to CurrencyFair, CaxtonFX, Transferwise and Exchange4Free. Most transfers will be to India and one next year will be to Indonesia. It must also be online. I can't find out if TorFX is online. I think not. The amount would be £1000 or less per deal.
Any advice?

pinkcloud

It is also worth noting that Transferwise is fully authorised by the UK Financial Conduct Authority (FCA).

As I have said elsewhere, I have just had them send £80 in euros to Portugal. It cost me just £1, arrived the same day and with nothing deducted from the recipient.

My email query during the process was answered straightaway.

This is a great service.

pinkcloud