hidden bank charges on fx rate

FCA_ACF

I've been an HSBC customer for 20+ years. 
A few times I've had to transfer money between HSBC accounts in my name, one in UK and one abroad.
HSBC advertising clearly indicates that transfers are free. In fact, they're simply hiding the fee in a rigged FX rate that's ten times worse than services like Wire.
What's most upsetting is that they make it so difficult to determine what the charges are, and their customer support simply insists there is no fee (as though I'm simply imagining it).
I'd like to know what legislation exists to prevent banks from hiding fees.
many thanks in advance.

powerful_Rogue

What does 1 & 3 say?

user1977

No different from a "no commission" bureau de change, surely?

DullGreyGuy

A link to the specific page would be helpful...

Looking on another page of theirs they state:

The HSBC Global Money Exchange Rate is made up of the cost to HSBC and a foreign currency conversion margin that we include.

So on that page at least there is an acknowledgement of a margin but it doesn't call out what it is. 

Ayr_Rage

The rate is quoted, WYSIWYG

As above, their fees are not disclosed to you but they advise they make money from it.

Alderbank

DullGreyGuy said:

A link to the specific page would be helpful...

Looking on another page of theirs they state:

The HSBC Global Money Exchange Rate is made up of the cost to HSBC and a foreign currency conversion margin that we include.

So on that page at least there is an acknowledgement of a margin but it doesn't call out what it is. 

The specific page provided in the OP's first post says:

Real time foreign exchange rates
Convert between currencies at competitive exchange rates that are updated every 90 seconds during market hours.

Looking at the instructions page
https://www.hsbc.co.uk/international/global-view-and-global-transfers/

HSBC says you input the amount to transfer online and the screen displays the exact amount you will be charged at their current exchange rate, updating every 90 seconds. If you are happy with that figure you confirm the transfer.

That doesn't sound to me like they are hiding the cost. I can't see how it could be improved?

TELLIT01

There is nothing in anything posted by the OP claiming that the exchange rate will be the commercial rate available to business.  The rate is far more likely to the the tourist rate from that bank.  I recently did a transfer to Greece and although there are no charges imposed by the bank, the exchange rate is the tourist rate.

DullGreyGuy

Alderbank said:
That doesn't sound to me like they are hiding the cost. I can't see how it could be improved?

Yes and no... as per my own posts they acknowledge its market rate + margin, yes they show you exactly what rate you are going to get but they dont anywhere state what the margin is whereas many other providers explicitly state its X rate plus a set margin... BOS for example say its 2.6% up to £25,000 and 0.8% on £1m 

FCA_ACF

powerful_Rogue said:

What does 1 & 3 say?

1. Most HSBC to HSBC transfers are fee-free, but some intermediary banks may charge fees. You can see an estimate of the applicable fees when you review your transfer. The actual amount is subject to the intermediary bank and will be debited after you've confirmed your transfer. Some banks may charge for incoming international transfers. Your payees will need to check with their banks on these charges as they vary and will be debited from the payee's account. We are unable to advise you on the fees applied by other banks for payments sent through Global Money Transfers.
3. There's usually no transfer charge to HSBC customers, but international banks may charge the recipient an incoming transfer fee.

FCA_ACF

user1977 said:

No different from a "no commission" bureau de change, surely?

perhaps not, but I'd like to know what legislation exists to prevent banks 'hiding' fees. If not 'hiding', then being less than straightforward about the cost of a transaction.

FCA_ACF

DullGreyGuy said:

A link to the specific page would be helpful...

Looking on another page of theirs they state:

The HSBC Global Money Exchange Rate is made up of the cost to HSBC and a foreign currency conversion margin that we include.

So on that page at least there is an acknowledgement of a margin but it doesn't call out what it is. 

Thanks. I hadn't seen that. But it does make me wonder why it's not on the product page, even in a footnote. The product page goes to town on the 'no fees' hard sell. So when is a fee not a fee? When it's hidden in a margin on another page?