Suggested best bank accounts for receiving money in USD$

sausage_time

wmb194 said:

sausage_time said:

adindas said:

sausage_time said:

Wise works great for receiving in US$, but be sure that the other party does not "Wire" the funds which will cost.  Use ACH (ABA) routing - think BACS - which is free to receive with Wise

https://wise.com/help/articles/2827506/how-do-i-use-my-usd-account-details
.   

I understand WISE make money from the spread in the exchange rate using their own conversion rate. But if you transfer US$ to WISE US$ account there will be no conversion involved.

I wonder how does WISE make money if they allow transfer from the same foreign currency USD to USD$ account ?

There is HSBC Global multi currencies account. But they do not allow you to transfer the same foreign currency to your HSBC Gloma Multi Currencies AC. The origin need to be in GBP and then converted into respected currency using VISA exchange rate before it is saved into your HSBC Global Multi Currencies. Doing this they still make small amount of profit. But about WISE how do they make money if they allow transfer USD to USD$ account ?

I'm guessing Wise make their profit on conversions and sending money out to external accounts.  So if I receive US$ into my Wise account  and keep them in US$, then there is no charge.  But the bet is that I'll transfer that to UKP.  For that the fee is around 0.5%, and then £0.34 to then send to my actual UK bank.

*GBP. Wise doesn't charge for domestic GBP transfers.

They charge me 32p.   Confirmed here: https://wise.com/gb/pricing/send-money?targetAmount=1000&sourceCcy=GBP&targetCcy=GBP&tab=1

DullGreyGuy

adindas said:

sausage_time said:

Wise works great for receiving in US$, but be sure that the other party does not "Wire" the funds which will cost.  Use ACH (ABA) routing - think BACS - which is free to receive with Wise

https://wise.com/help/articles/2827506/how-do-i-use-my-usd-account-details
.   

I understand WISE make money from the spread in the exchange rate using their own conversion rate. But if you transfer US$ to WISE US$ account there will be no conversion involved.

I wonder how does WISE make money if they allow transfer from the same foreign currency USD to USD$ account ?

There is HSBC Global multi currencies account. But they do not allow you to transfer the same foreign currency to your HSBC Gloma Multi Currencies AC. The origin need to be in GBP and then converted into respected currency using VISA exchange rate before it is saved into your HSBC Global Multi Currencies. Doing this they still make small amount of profit. But about WISE how do they make money if they allow transfer USD to USD$ account ?

They dont pay interest on the money whilst it sits there whereas they will probably receive at least token interest. The vast majority of customers will ultimately exchange the money and so they get their fees and the spread when that happens. 


There is a deep dark rabbit hole of how banking works with fractional reserving etc such that if you deposit £1,000 this allows the bank to lend someone else £10,000. Wise doesn't lend but I am almost certain if you transfer £500 to Mexico it isnt actually moving the money globally but accepting the money in the UK and then from a Mexican account paying out the money. Its not beyond the wit of man that having customers holding funds in various counties could help it with this process.

wmb194

sausage_time said:

wmb194 said:

sausage_time said:

adindas said:

sausage_time said:

Wise works great for receiving in US$, but be sure that the other party does not "Wire" the funds which will cost.  Use ACH (ABA) routing - think BACS - which is free to receive with Wise

https://wise.com/help/articles/2827506/how-do-i-use-my-usd-account-details
.   

I understand WISE make money from the spread in the exchange rate using their own conversion rate. But if you transfer US$ to WISE US$ account there will be no conversion involved.

I wonder how does WISE make money if they allow transfer from the same foreign currency USD to USD$ account ?

There is HSBC Global multi currencies account. But they do not allow you to transfer the same foreign currency to your HSBC Gloma Multi Currencies AC. The origin need to be in GBP and then converted into respected currency using VISA exchange rate before it is saved into your HSBC Global Multi Currencies. Doing this they still make small amount of profit. But about WISE how do they make money if they allow transfer USD to USD$ account ?

I'm guessing Wise make their profit on conversions and sending money out to external accounts.  So if I receive US$ into my Wise account  and keep them in US$, then there is no charge.  But the bet is that I'll transfer that to UKP.  For that the fee is around 0.5%, and then £0.34 to then send to my actual UK bank.

*GBP. Wise doesn't charge for domestic GBP transfers.

They charge me 32p.   Confirmed here: https://wise.com/gb/pricing/send-money?targetAmount=1000&sourceCcy=GBP&targetCcy=GBP&tab=1

Not me. From Friday, sending to a current account after a conversion from USD:

sausage_time

wmb194 said:

sausage_time said:

wmb194 said:

sausage_time said:

adindas said:

sausage_time said:

Wise works great for receiving in US$, but be sure that the other party does not "Wire" the funds which will cost.  Use ACH (ABA) routing - think BACS - which is free to receive with Wise

https://wise.com/help/articles/2827506/how-do-i-use-my-usd-account-details
.   

I understand WISE make money from the spread in the exchange rate using their own conversion rate. But if you transfer US$ to WISE US$ account there will be no conversion involved.

I wonder how does WISE make money if they allow transfer from the same foreign currency USD to USD$ account ?

There is HSBC Global multi currencies account. But they do not allow you to transfer the same foreign currency to your HSBC Gloma Multi Currencies AC. The origin need to be in GBP and then converted into respected currency using VISA exchange rate before it is saved into your HSBC Global Multi Currencies. Doing this they still make small amount of profit. But about WISE how do they make money if they allow transfer USD to USD$ account ?

I'm guessing Wise make their profit on conversions and sending money out to external accounts.  So if I receive US$ into my Wise account  and keep them in US$, then there is no charge.  But the bet is that I'll transfer that to UKP.  For that the fee is around 0.5%, and then £0.34 to then send to my actual UK bank.

*GBP. Wise doesn't charge for domestic GBP transfers.

They charge me 32p.   Confirmed here: https://wise.com/gb/pricing/send-money?targetAmount=1000&sourceCcy=GBP&targetCcy=GBP&tab=1

Not me. From Friday, sending to a current account after a conversion from USD:

Last transfer I did was 2020, so perhaps that has changed.   I'll be doing one later this month so will confirm.  Thanks!