I want to exchange a large amount of pounds to euros after selling my flat. But when when and how?

maddy1234

Hi, this is my first ever post! I hope I’m doing it in the right place.. I recently sold my flat in london ( end of May ) I need to transfer it to euros as I live in Dublin and want to buy a house there soon ( August/ September time )..
But the exchange rate is so bad I was waiting to see if it would get better, it hasn’t it’s getting worse. I know it’s very tied to the news- does anyone have any thoughts on when it might even out or get slightly better? Secondly- how do I do it? I phoned the bank they won’t do me a special deal, a local exchange rate office, but can you trust them with a large house sum amount of money.. or a large company like XE. I’m not even sure banks can transfer large amounts all at once? Any help would be greatly appreciated. Thanks!!

eddddy

This article has some relevant info: https://www.moneysavingexpert.com/banking/foreign-currency-exchange/
(but not all of it is relevant to your situation).


If you use forex transfer companies, you can reduce the risks associated with them going bust, by either...

• Transfer the money in chunks (wait for one chunk to arrive in the destination account before sending the next chunk)

or

• Use multiple forex transfer companies, with a chunk of the money going through each

If you phone them, many forex companies will quote you a fixed GBP/Euro ex rate - if you like the rate, you can reserve it and then send your GBP to them.

rajeshk4u

I am assuming you already have a Bank Account in Euros. You may wish to open another Euro bank account. Such as Ulster Bank in the Republic. As there is a financial limit to compensation in case of bank collapse, although Ulster Bank is owned by RBS, which is owned by the British Government.

As per advice above, transfer the money in small segments, for extra safety. Check the firms you use are regulated. Look at companies like Transferwise. There are others around.

If you dont' want to use a transfer company. Banks will happily transfer money, that is how global commerce works, but banks are a little bit more expensive and they have their charges.

As for when to transfer. In May the Euro rate did go back up. You missed your window. No one can predict where the rate will be.

diggingdude

i heard in news a couple of days ago its unlikely to rise during the holiday period. not sure how accurate that is

davidmcn

maddy1234 wrote: »

does anyone have any thoughts on when it might even out or get slightly better?

If any of us could predict currency fluctuations then we'd be logging in here from our own tropical islands...

SouthLondonUser

The first question is what will happen to the exchange rate? Let me dust my crystal ball and I shall answer that for you, mate...

As for the second question, where exactly are you sending the money to? A EUR account in Ireland? A EUR account in Dubai?

The link you were given correctly explains the importance of ringfencing.

I would consider the likes of HSBC and First Direct (which let you do foreign transfers if you have an account with them), Transferwise, WorldFirst and Fineco. Transferwise and WorldFirst are not banks but, if I remember correclty, they ringfence the funds (do double check). Fineco is a bank, there is a long thread on this forum about it. But it is an Italian bank and the funds are protected by the Italian equivalent of the deposit protection scheme.

Finally, remember to keep as much documentation as possible to prove the source of the funds, i.e. the sale contract, ideally a letter from your solicitor confirming you sold the flat and received x much, and the bank statement showing that money coming from your solicitor. You never know when you might need to prove where the money came from.

GDB2222

HSBC do a Euro account here in theUK. Very easy to set up.

knightstyle

We have used Currencies Direct many times over the years and always had a good rate and service.
BUT bear in mind that unless you use a bank to transfer money you are probably not protected.
So we break the pot into smaller chunks and transfer each after the previous one has safely arrived in our receiving bank.

danlewi2

Does Ireland have the same FSCS protections as the UK?
If not I would hold in the UK until you are ready to make your house purchase.

sillyhilly

knightstyle wrote: »

We have used Currencies Direct many times over the years and always had a good rate and service.
BUT bear in mind that unless you use a bank to transfer money you are probably not protected.
So we break the pot into smaller chunks and transfer each after the previous one has safely arrived in our receiving bank.

You are protected using these types of companies.

Through their regulation with the FCA (obviously check that this is the case!), the companies are required to ringfence customer's funds. So if you transfer in EUR100,000, that will be ringfenced in its entirety. The ringfenced account is most likely held with a Bank (i.e. Barclays), so even if the company went bust, it would still be protected.

Although, my risk averse nature also transfers in smaller chunks, and at the very least will give you a decent 'average' FX rate, and mitigate any potential drops.

SouthLondonUser

That (the ring fencing) is true. However, has it ever been tested in real life? Do you know of cases where one such company went bust and the clients didn't lose a penny?