HSBC exchange rate charges

J45

hi, i currently have $4000 in a merchant that i need to get into my HSBC GBP Bank account. Now i have the option to do a wire transfer. But my real worry is the exchange rate from $ to £. I have emailed HSBC and they sent me this:

Please note, the charges deducted by HSBC, UK for Sterling clean payments payable to your bank account from anywhere in the world is as follows:

Up to GBP100 FREE
Over GBP100 GBP6 per item

Foreign currency clean payments payable to your account in the same currency as the payment (includes euro currency payment payable to our customer's sterling/euro account):

Up to GBP100 equivalent - FREE
Over GBP100 equivalent - GBP6 per item

If clean Euro payment, from EU, under EUR50,000 - quoting BIC & IBAN - FREE

Clean payments payable to your account held in a different currency from that of the payment:

Up to GBP100 equivalent - FREE
Over GBP100 equivalent - GBP8 per item

If clean euro payment, from EU, under EUR12,500 - quoting BIC & IBAN - FREE

However, in order to find out the various methods of funds transfer from an overseas account to your HSBC UK account and the cost associated with it, you will need to contact the remitting bank as procedures for transfer varies between banks.

Clean payment in favour of firms, private individuals and all bodies including payments to other banks for account of third parties GBP11 per item, unless a clean euro payment, from EU, under EUR12,500, quoting BIC & IBAN, which as of 1 July 2003 is free.

so reading that, what would be the best way to transfer the $4000? in £100 chunks? tbh most of that above went over my head and need some help

jonesMUFCforever

Presumably the 'merchant' will charge to send you the $ so doing 20 or so transfers is a no - no.
Take the hit of one charge of £8 and be damned!!

As for foreign exchange rate you are bound to get a poor rate because the dollar is weak against the £.
Your bank will convert to £ upon receipt (unless the sending instruction is to hold pending your instruction) the exchange rate will be that on the day.
If you get £1900 youwill be doing well.

JudyM_3

HSBC - like any High Street bank (except for First Direct, who always quote very close to the InterBank rate) - take a huge margin on the exchange rate to make their money; they then charge you a fee for ripping you off :rolleyes:

If you have the equivalent of more than £1000 sterling to exchange, try one of the currency exchange companies, and better still, get a comparison from one or 2 of them.

Yesterday, a friend of mine in Yorkshire had to send 16,500 euros to France for a house deposit. His local Barclays offered him a rate of 1.4312€, and a fee of £35 to send the money to France in 3 days. This would have cost him £11,563.78. He rang round and eventually got 1.4715€, no fees and same day transfer yesterday with www.firstratefx.com so it cost him £11,213.04; a saving of £315.74

Guess where he won't be trading the balance of 300.000 euros Depending on the exchange rate at the time, he stands to save over £6,000 by not using his greedy bank ...