Large International Money Transfers Discussion area

robbie_save

cephaloniaconnections wrote: »

Dear Vinegardisaster, One FX company told me they don't need to be regulated by the FSA because they are not Advising on how to invest money. Being regulated FSA won't change things if the company goes bust. I have looked at a lot of FX companies as well as the FSA rules and regs as well as office of fair trading etc etc trying to find out what happens if an FX company goes bust - what is the protection of the money in transit? The FX websites can give a whole list of its Customs and Excise numbers and by using words such as Regulated it tends to make you feel more secure. The ones that are with Dun and Bradstreet say you can check their credit rating but to do this it costs 340 dollars for a report!! I have no doubt that it is much easier to use FX company and you save money but I still feel nervous about sending a huge amount of money off to a company that is not a bank and therefore its funds are not guaranteed in the same way the goverment agencies insure a certain amount of your funds in the bank. The FX companies say they hold your money in a client trust fund - but none of the websites say exactly what would happen if they went bust. I am still searching for the answer before I send my money abroad.

That's correct as I understand, they don't REQUIRE FSA regulation - though some of them are FSA regulated. Vinegardisaster - If you feel safer you should run with those.

Looking at the chart, seems Raphaels and Worldfirst are.

You can also ask if the banks are subsidiaries of large businesses - as I understand moneycorp is owned largely by RBS and Axia by citibank.
(ask the account managers they can tell you.)

I also believe that with the FX banks, when funds are deposited by the client, they got into a secured and insured account, and the funds cannot be traded or risked by the FX companies.

Again - I would advise you contact the companies and ask them, as I am going from memory and what am no expert!

mr1974

I wanted to check out multiple rates, but with Foreign currency direct first you transfer into their account, and THEN (3-4 days) you can enquiry about the rate being applied (makes sense to me, but not sure how someone above went about "shopping around"...?).

Also they are asking me to transfer to an english bank from spain, which will obviously include fees?
mr

hedgerows

I transfered some money abroad using a company called axiaFx, i found them very helpful and rates were extremely good.

Mr1974 i found that by calling a few companies you can get quotes with them, called a few and found axia were the best quote at the time. but did have to sign up for an account with them that took only few mins on there website. they told that signin up im not obliging to anything so was happy to do so.

hope this helps guys.

p.s i used a guy there called Paul.

Minarzouki

Hi Joujou,

I understand the dilemma and thought I could offer some help.

You’re right to be considering a foreign exchange broker. By using a broker, you can almost guarantee to be getting the best available rates and certainly a lot more competitive than the banks.

Most brokers only advertise the interbank rate on their website. The reason being is that commercial rates (rates you would actually receive) are hard to advertise as those rates are dependant on a number of factors including the amount being traded. As brokers can only show one rate on the screen, this must be representative for all clients trading large and small amounts as well as those who are either buying or selling the currency in question and therefore they advertise a mid-market rate.

If you are worried about the creditability, you could check their latest accounts or have a look at their credit rating. There are a number of sites that can provide this information such as Companies House or Equifax. However, I believe you may need to pay a charge to receive this information.

Now reading your questions, please find my relevant answers below.

1) Sending funds to a third party is not usually a problem as it is the usual occurrence. Most companies will ask you to fill out the details and sign it off to authorise a transfer. You can either scan and email or fax back your details and the money will be sent on the date you have stipulated.
2) Brokers usually work on the phone whereby an exchange is guaranteed and binding over the phone. To set up a trading facility, most brokers now have an online account opening page whereby the account is activated in a number of minutes should you agree to an address check being run using your name and address. Depending on you score, you may be asked to provide further identification.
You should then be assigned a dealer who will help you trade at the optimum time. Once you agree to an exchange date, your trade will then be a verbally binding contract and you will be asked to choose a value date. A value date is the date you have agreed to delivery you funds by and the date in which you wish your funds to be transferred. Most brokers offer the following payment methods:
BACS – (online bank transfer or telephone banking) this is the best method as your bank will not charge you for transferring the funds. This method can take anything between a few hours and four working days to complete depending on the broker banks with. If both you and the broker bank with the same bank, then the funds will be received in a matter of hours.
Chaps (this is a wire transfer) and should take a few hours to reach the broker regardless of the banks involved. Only disadvantage is that banks charge to wire funds across.
Cheque – lengthy time delays possible.
Once your funds have been received your funds will be sent on the value date. Transfers are made via SWIT which means if you are sending Euros then the funds should reach your bro’s account on the same day or 24 at the most.
3) In all honesty, you will never receive the mid-market advertised rate as that is the rate that banks trade at with each other. The more you transfer the closer you get to the advertised rate. Unfortunately, due to current economic climates, you are looking at an extremely weak Sterling. You may be interested in signing up to daily commentary to stay up to date on currency news, or ask your broker about limit orders whereby you stipulate a rate that you wish to trade at and your currency is immediately purchased once the rate has been achieved.
4) Certain brokers absorb all receiving fees on your behalf so that the amount booked is the amount received. This is an extremely beneficial service as certain European banks charge a large amount for receiving your funds.

Let me know if you need anymore information. Hope this information proves useful.

Kindest regards,

Mina Rzouki, Quality Services Manager, Moneycorp, https://www.moneycorp.com

mr1974

Still haven't understood how you shop around, if some days pass between you obtaining the quote and the transfer taking place (that is via non-chaps)
mr

alanowski

I am currently in the process of emigrating to the USA. I have a UK bank account where I have my savings and an American bank account where my current pay goes (I am a US resident).

I'm currently in the same situation as I'm sure a lot of people are, and I regret not bringing my money over here before the pound dropped so heavily. I would like to learn more about how currency flutuates and who I should go to for advice on when I should transfer this money over.

I do not need the money right away, although I do plan on buying a house in the next 8 months, so I would like to know if it's best to cut my losses and bring the money over now, or if there is a good chance of the pound being worth more in 6 months and I should wait.

Everything is a gamble at these times, but I'd like to be as clued up as possible to make the most informed decision.

Cheers,

robbie_save

Minarzouki wrote: »

Hi Joujou,


Most brokers only advertise the interbank rate on their website. The reason being is that commercial rates (rates you would actually receive) are hard to advertise as those rates are dependant on a number of factors including the amount being traded. As brokers can only show one rate on the screen, this must be representative for all clients trading large and small amounts as well as those who are either buying or selling the currency in question and therefore they advertise a mid-market rate.

Kindest regards,

Mina Rzouki, Quality Services Manager, Moneycorp, www.moneycorp.com

This is true in general, but as I understand if you look at this site and apply through it - Find a
currency exchange at Whichwaytopay.com:

http://www.whichwaytopay.com/compare-foreign-exchange-summary.asp


You will be guaranteed a minimum margin, so you can work out at least the minimum rate you will get - and you can negotiate for a lower rate with the actual broker.

But yoou always save money with a specialist foreign exchange bank rather tahn a traditional one.

markymark33

mr1974 wrote: »

Still haven't understood how you shop around, if some days pass between you obtaining the quote and the transfer taking place (that is via non-chaps)
mr

Hi

Your correct the fx rates (interbank) move by the second, so the quote could and generally does change, but what you need to do is find out the spread (margin) from the broker(s) (shop around). Also if there are any additional commissions or fees. Once you know this you can work out exactly what you get for your money, anytime. Sure there is some delay in getting the money into the fx account and the rate could turn against you (so don't trade), but then again it could go in your favour. The delay is less important because you know the rate and margin. Alternatively you could always lock it all in with a flexible forward contract, with a average deposit around 5%.

Mark

Minarzouki

Hi alanowski

The best thing to do is firstly sign up to receive market commentary so you are aware of what is going on in the currency market. You can go to news websites like Forex.com or alternatively sign up to receive daily or weekly market commentary from any Foreign Exchange Specialists’ website.

Then look into actually signing up with a Specialist Brokers who have dedicated personal dealers that watch the market on your behalf. However you must note that they are not permitted to advise you, they only offer a view of the market and guidance. Ask to put triggers in the market so you are comfortable with the rates. Ask for such things as limit orders (triggers higher than the market that could be achieved in the future) and Stop loss (triggers at the very bottom of your budget). That way you are kept constantly informed.

You must note that whenever there are recession fears, the large majority of people will seek refuge in what are considered to be ‘safe haven’ currencies such as USD and Swiss Francs as they will never lose their value too much. They are considered reliable currencies and always strong. Market data out yesterday has seen the Dollar slump quite a bit but with further UK interest rate cuts, GBP looks to weaken further.

Hope this proves useful.


Mina Rzouki, Quality Service Manager, Moneycorp, https://www.moneycorp.com

adr0ck

Does anyone know any trustworthy companies for sending monies overseas?

My folks have had a bad experience with currenciesdirect and are therefore looking for alternatives