moving pounds sterling into a spanish bank

pingo_2

we are buying a properties off plan in spain and would like to know the most effective way of ensuring we get the best rate for the euro (commercial rate) when we send the funds through to pay the builder.
we have an account with the bank of andulucia but wonder if we are doing the right thing by sending our money there so that it can be accessed by our spanish solicitor.

any advice would be welcome :rolleyes:

Natelle_2

May I suggest you look at the following link we have posted previously.

http://forums.moneysavingexpert.com...ad.html?t=33862

This will enable you to have money available in Spain when you need it but with the advantage of watching the exchange rate to be able to send at the best value time. The fact that you have the money out in Spain doesn't mean your Spanish solicitor can access it without your say so, but it does mean you can meet any installment payments required by your builder.

Robin00

Hi Pingo,

Briefly, you are probably not getting the best deal you could on your currency, using your Spanish bank to exchange your currency is probably incurring a hefty commission charge each time (which they don't tell you about in advance!).

The UK banks don't tend to offer great exchange rates either, although some do sometimes.

The best bet is to use a currency broker in the UK and send funds directly to the builder when required. That way you will get a competitive exchange rate with no commission, and by sending Euros direct to the builder you should avoid charges in Spain too.

If you are buying off plan you should also consider fixing forward to lock in to exchange rates in advance. That way you are not subject to fluctuations which might make a stage payment much more expensive than you had anticipated.

There are lots of brokers to choose from but if you take a look at currencies.co.uk and quote MoneySavingExpert we will make a donation to Martin's charity fund for any currency bought.

Good luck!!

PS - the Euro rate today is the best for 6 months, in case anybody was wondering...

worldtraveller

Robin00 wrote:

The best bet is to use a currency broker in the UK and send funds directly to the builder when required. That way you will get a competitive exchange rate with no commission, and by sending Euros direct to the builder you should avoid charges in Spain too.

..I've posted on this subject several times. The best rates may well be obtained using currency brokers, but there are risks involved. Generally, by using the major banks, your money is secure & protected by legislation. This is not the case with currency brokers who are not covered by the same legislation/protection. In the event of a currency broker going bust, whilst your money is in the process of being transferred, you can pretty well say goodbye to it!!! You pay your money and take your choice!!

Robin00

Despite being an aforementioned curency broker myself, I *almost* agree with worldtraveller... the trick is not to use a company that set up 5 minutes ago with 2 guys working in a bedroom, but a reputable company with a long trading history, preferably a plc, with safeguards and security processes in place.

Some currency brokers have these security measures, and some don't. Investigate before using!