Money Transfers
#1
Money Transfers
Could someone please explain how currency transfer companies work?
To buy my property I'll need a company to transfer funds from my UK bank but I have no idea how it all works.
Any recommendations or things to avoid?
To buy my property I'll need a company to transfer funds from my UK bank but I have no idea how it all works.
Any recommendations or things to avoid?
#2
Account Closed
Joined: Mar 2017
Posts: 0
Re: Money Transfers
I use World First (based in London) but others are available. You set up an account (very straightforward - done on line) transfer your UK funds to them, they convert to Euros & then transfer those to your account in Portugal (so you need to set that up as well). Afraid that I know nothing nothing about setting up an account in Portugal but others will advise you.
#3
Re: Money Transfers
With all of them the detail is in how they calculate the exchange rate , usual being "No fee" as they offer a slightly poorer exchange to compensate.
Make sure you can speak to a real human being and that they are readily available to guide you through the process.
For smaller amounts use a web site like TransferWise , good rate, low charge, speedy service no hassle.
#4
Forum Regular
Joined: Feb 2016
Posts: 257
Re: Money Transfers
Yes large amount use an online broker, you can negotiate rate. Smaller amount use transferwise as the amount doesn't affect the rate and fee.
#5
Re: Money Transfers
There are several companies CurrencyFair, Money Corp, HiFx already mentioned World First and lots more. All require a registration process , if done online normally involves uploading the photo page from your passport or similar photo ID.
With all of them the detail is in how they calculate the exchange rate , usual being "No fee" as they offer a slightly poorer exchange to compensate.
Make sure you can speak to a real human being and that they are readily available to guide you through the process.
For smaller amounts use a web site like TransferWise , good rate, low charge, speedy service no hassle.
With all of them the detail is in how they calculate the exchange rate , usual being "No fee" as they offer a slightly poorer exchange to compensate.
Make sure you can speak to a real human being and that they are readily available to guide you through the process.
For smaller amounts use a web site like TransferWise , good rate, low charge, speedy service no hassle.
The account opening process for all money remitters is very similar to opening a bank account - just like banks they are required to verify your identity and address to ensure that they know who is using their services and to ensure that criminals are (i) discouraged, (ii) can be traced when necessary.
#7
Re: Money Transfers
But Everything I have read about Currencyfair is that they have an exchange rate spread (on either side of the mid rate - so you might pay $1.3465 for £1, but only receive $1.3335 for £1 which is approximately 0.5% +/- the mid rate = a 1% spread), whereas Transferwise exchanges are at the mid rate and then add a 0.5% fee.
#8
BE Enthusiast
Joined: Apr 2007
Location: Poço Longo, Olhão
Posts: 836
Re: Money Transfers
Speak to a few currency exchange companies and see what solutions they can offer to protect you against fluctuations in the exchange rate. What you don't want is you budgeting for the purchase and then the exchange rate moving so that it costs you more to purchase Euros.
#9
Re: Money Transfers
If you are very tight on funds and absolutely need a GBP/EUR rate of 1.07 in say December, then fixing at that rate today might be a good deal, even though the spot rate today is, say 1.09, and nobody knows whether the rate in December will be higher or lower than that.
But bear in mind, like paying for insurance, the banks set the rates at a rate that guarantees that on average they will win. ..... In other words, fixing the rate might be a good deal, but on average you will lose.
#10
Forum Regular
Joined: Apr 2017
Location: Norwich
Posts: 29
Re: Money Transfers
Hi, we have just gone through the purchase process.
First set up an account with a UK currency broker, Smartcurrencyexchange, currencies direct etc. It's free and just like opening an account in a uk bank.
When you want to buy euros you can phone the broker and see what the rate is for amount you need to purchase. They buy the euros via the international money market and you send them the sterling via online bank transfer.
They then hold the euros in a your client account until you want to send the money abroad. Then phone them to tell them to send the euros.
They can send to your lawyer if for house purchase, you just need account details of where to send.
Easy and you can have a number of different currency brokers to get best rate. Some have apps so you can do transactions on your phone......scarily so easy.
First set up an account with a UK currency broker, Smartcurrencyexchange, currencies direct etc. It's free and just like opening an account in a uk bank.
When you want to buy euros you can phone the broker and see what the rate is for amount you need to purchase. They buy the euros via the international money market and you send them the sterling via online bank transfer.
They then hold the euros in a your client account until you want to send the money abroad. Then phone them to tell them to send the euros.
They can send to your lawyer if for house purchase, you just need account details of where to send.
Easy and you can have a number of different currency brokers to get best rate. Some have apps so you can do transactions on your phone......scarily so easy.
#11
Re: Money Transfers
For amounts over £100,000, ironically, you may still find your bank can provide a very competitive rate - you need to ask the bank for a "dealing desk rate", reserved for large amounts.