Based UK, paid by a US company in USD: best option to reduce transaction fees + poor currency rates?

mexrob

Hi! i've searched on this topic but most threads seem quite old and some responses have mentioned Fineco bank as a good solution but that has now closed in the UK. 

In essence, I have just signed a contract working as a PT consultant for a US company. It won't be very lucrative and paid by the hour, something like 10 hours p.w. 

The company uses a service called Stripe and need my UK bank details to make payments. I'm concerned about being charged transaction fees (poss both ends) and also i'll be subject to whatever rate they're using (unsure which end?)  I recognise there will be some loss in each transaction, but want to minimise this.  One sensible solution suggested their end, is to let the payments build up and make a smaller number of larger transactions, not lots of little ones all incurring a charge. 

Anything else I can do?  is a USD account a good option? 
Any help gratefully received! and please keep it simple as i'm not very savvy in this area!



    

wmb194

mexrob said:

Hi! i've searched on this topic but most threads seem quite old and some responses have mentioned Fineco bank as a good solution but that has now closed in the UK. 

In essence, I have just signed a contract working as a PT consultant for a US company. It won't be very lucrative and paid by the hour, something like 10 hours p.w. 

The company uses a service called Stripe and need my UK bank details to make payments. I'm concerned about being charged transaction fees (poss both ends) and also i'll be subject to whatever rate they're using (unsure which end?)  I recognise there will be some loss in each transaction, but want to minimise this.  One sensible solution suggested their end, is to let the payments build up and make a smaller number of larger transactions, not lots of little ones all incurring a charge. 

Anything else I can do?  is a USD account a good option? 
Any help gratefully received! and please keep it simple as i'm not very savvy in this area!    

Try opening a Wise USD account. It'll give you a domestic US bank account number and its fees and FX rate for conversion to sterling are competitive at c.0.3%.

DoboChopSueyBar

A better (cheaper) option would be to use Revolut, since they also offer a local US based USD account (through Lead Bank). Unlike Wise, Revolut don't charge any currency conversion fees and their free account lets you exchange up to £1000 worth of forex each month. 

mexrob

Thank you - I'll check that out!  Someone did mention them (and Monzo). Much appreciated!   

WastedWords

You could also consider HSBC USD currency account to receive and HSBC Global Money Account to convert. 
Exchange may not be quite as good as Wise or Revolut but you would have FSCS protection and possibly better support should things go wrong.
As an aside, just received my final statement from Fineco. Shame, was good while it lasted....

mexrob

thanks! agreed, am already navigating Revolut customer service to ask my Qs!  Not sure i've been ever in a position where you have to create an account to speak to a rep!    

PRAISETHESUN

Personally I'd avoid Revolut. They have a well known history of poor customer service. I'm sure their onboarding team makes a great first impression, but wait until you actually have a problem that you need them to sort out for you. Another recommendation for Wise here, but keep in mind that you probably don't want to keep any money with them long-term as they don't offer any FSCS protection.