FX fees on withdrawing cash from broker

lazer-zxr

Due to employer RSU sale, I have some cash USD in a fidelity broker account.
i went to transfer it to my uk gbp Barclays current account, and it said I’d incur 2% fx fee at the broker.
i was wondering if I could open a usd account at Barclays, and avoid this fee? Or is there another way?

[Deleted User]

lazer-zxr said:

Due to employer RSU sale, I have some cash USD in a fidelity broker account.
i went to transfer it to my uk gbp Barclays current account, and it said I’d incur 2% fx fee at the broker.
i was wondering if I could open a usd account at Barclays, and avoid this fee? Or is there another way?

Yes, but it's not a domestic US account so there would probably be a SWIFT/Wire transfer fee from both sides.

Wise might be a better option - either as a one off transfer or by opening one of their accounts that offer USD details. Just be aware that Wise isn't a bank. 

wmb194

lazer-zxr said:

Due to employer RSU sale, I have some cash USD in a fidelity broker account.
i went to transfer it to my uk gbp Barclays current account, and it said I’d incur 2% fx fee at the broker.
i was wondering if I could open a usd account at Barclays, and avoid this fee? Or is there another way?

As FredTrump suggests, try Wise. It offers a USD account with an ACH number - the US domestic equivalent of Britain's BACS and faster payments - which you should be able to transfer your money to as USD for free. Wise will still charge 0.5% to convert it to sterling but it'll still leave you ahead and Wise offers good rates.   

cwep2

I had similar happening every year. Got fed up of the exorbitant fees most banks charged.

I opened a USD account and did the FX transfer with a 3rd party.
USD > USD transfers usually incur a wire fee which can be as low as $10-15 or as high as $50-70, this may apply if you transfer from broker to USD account and again to FX broker (unless you do the FX at the place you have the USD account). Some of these (UK) based USD accounts will also charge a fee for incoming ACH transfers which are like a BACS transfer so really should be free.

These wire transfer fees may be more than the 2% you get charged if the amounts are low, but you'll have to work that out yourself, sometimes it is not clear what the fee will be, I have done same transfer between same two accounts and paid totally different wire transfer fees.

USD account candidates I have used: Revolut, Wise, HSBC Global Money, Citibank (no longer available) and I'd probably put them in that order myself in terms of expected costs including FX.

If you care about FSCS for the short time you'll have meaningful amounts of cash in there then use HSBC. 

lazer-zxr

Thanks for all the advice. Value is $20k, so keen to reduce the %

lazer-zxr

I’m stuck. I’ve setup both a Wise and Revolut usd account, but because the swift code has a GB reference (as opposed to a US reference with in it) , the broker won’t recognise it as a usd account to transfer to.

wmb194

lazer-zxr said:

I’m stuck. I’ve setup both a Wise and Revolut usd account, but because the swift code has a GB reference (as opposed to a US reference with in it) , the broker won’t recognise it as a usd account to transfer to.

Are you finding the correct account details? Find the ACH number for the Wise account. Is this Fidelity account domiciled in the US or elsewhere? Does it only allow international transfers? For international transfers mine says the Swift code is CMFGUS33*, though etrade doesn't ask me for it for ACH transfers. 

*Found via the app in, "proof of access details" for my USD account.

lazer-zxr

wmb194 said:

lazer-zxr said:

I’m stuck. I’ve setup both a Wise and Revolut usd account, but because the swift code has a GB reference (as opposed to a US reference with in it) , the broker won’t recognise it as a usd account to transfer to.

Are you finding the correct account details? Find the ACH number for the Wise account. Is this Fidelity account domiciled in the US or elsewhere? Does it only allow international transfers? For international transfers mine says the Swift code is CMFGUS33*, though etrade doesn't ask me for it for ACH transfers. 

*Found via the app in, "proof of access details" for my USD account.

Thanks, I found the details. I've applied the account details, and need to wait 11 days.

lazer-zxr

Thanks to all the advice. Got my money out paying ~£100 fees instead of ~£400 fees, using Wise, which is something I’d never heard of until this thread. Much appreciated.