Paradiseapplebody

Hi, I am wondering if it is more efficient to transfer money from my Canadian bank account to a bank account when I reach London using paypal, or is this a stupidly expensive way that is not very efficient? I want to know how the rest of you would manage this. Also is the procedure the same if one already had a bank account in London as apposed to having to open one up? Or do I just keep charging everything on my visa and mastercard and keep paying it off using my Canadian bank account online while I spend it away in London? (But I am wondering if the fees would be worse than the paypal charges?)

Aviator

No idea what the paypal charges are, but it is not a way I would consider. Credit Cards charge 1% for the FX fee, the FX rate varies on each transaction. I only ever use credit cards overseas. I also had a small blance in a UK bank which provided funds when in the UK, which I used to be quite a lot when working, not so much now.

Paradiseapplebody

Thank you for your response. So in other words, given the exchange rate held constant, it would be more economical to just keep using Canadian credit cards in the UK until my funds in Canada run out, and pay online through internet banking, over paying the Money Mart like usurous fees of Paypal. However, if one were to have a bullish outlook on the UK Pound such as Melvin King proposing to raise interest rates and if Mark Carney were to do what the Swiss did and propose to bring down the Canadian dollar which I think will happen to allow the Canadian dollar to not get past 90 cents or whatever US, by placing not a peg but a ceiling compromising the inflation target idea which has been practiced since Gordon Thiessen ruled to make the inflation target at 2%, without taking in employment considerations, thus bringing in a bearish outlook on the Canadian dollar, then it would be reasonable to pay the paypal rate to exchange the entire savings into UK pounds upon arrival.

cornmatthew

I'm curious which Canadian CC you're using that only charges 1%. I must get one of those. The standard seems to be 2.5%.

Last I worked it out, PayPal seemed to cost about 3%, taking account of their charges and the spread in their exchange rate.

Paradiseapplebody

I do not know, I was told it was 1% in the first response, and basing on that assumption. Thanks for letting me know it is 2.5%.

Aviator

Amex Plantinum, Visa charged me more. Amex Fx rate was also better than others. Other than bank transfer, this was by and far the lowest cost for low value transactions for me.