walaj

Whilst the exchange guys have to make a bit of money, I don't want them to make too much

So on the larger amounts (say over £100k) the difference between the market rate and Ozforex rate (currently shown on their website) is 1.09cents.

I know this to be in the ball park for the difference, and I have previously read that you can negotiate with the exchange companies.

So my Q (eventually ) is, how much have you bods negotiated the difference to?

Jimclevs

Hi

I think you would do extremely well to get the margin below that 1.09 cents - unless, of course, you were wanting to exchange mega money.

Jim

The S's

I exchanged £100k not long ago and I think I paid more than 1.09 cents. That was with hifx though and I have since started using ozforex as you seem to get a better rate.
I did question HIFX about the seeming large gap between what they were offering and the interbank rate and he basicly said take it or leave it
Unfortunately as I am a complete novice at this and also the rate had just improved significantly so I took it, still you live and learn.

demigrate

I did get a margin of slightly better margin than 1.09 but I was changing quite a bit more than 100k. That was with Ozforex and that margin was from the market forward contract rates as I took a contract. You could try to negotiate but as they give the best margins out of them, HIFX and Travelex then I don't know how you will negotiate with them.

Darren.

Guest0424

HIFX internet site was 2.46 when we bought in April. They gave us 2.415 which didn't seem bad at the time. Just wish I'd waited now its gone up again. Better never mind - done now.

OzTennis

What you call the market rate is the interbank rate and isn't what the customer will receive. I reckon 1.09 cents is reasonably good. Think of the 'market rate' as what the wholesaler charges the retailer and the actual rate as what the retailer charges you and you won't go far wrong. As HIFX etc say, how close the 2 rates will be basically depends on the amount you have to trade.

There also seems to be a lot of confusion between the currency rate and the rate for transferring larger amounts to a bank account. eg the 'I only was offered $2.35 by my bank/travel agent but the rate is meant to be $2.50' sort of statement.

The currency rate also has a buy and sell rate (you can take it as a rough guide that the market rate will be in between). eg lob at your bank with $A's to change to £'s and they'll offer close to $2.70 per £; do it the other way and they offer you $2.30'ish for your £'s. Sizeable profits are made on currency transactions via this difference in rates.

Tell me about eggs and granny if you wish.

OzTennis