Mrs Kiwi

Hi guys

I remember seeing a post on here that said one of the money transfer companies (Ozforex, Moneycorp etc..) guarantees your funds are safe if they go bust while they have your money, whereas the other money transfer companies don't.

I can't find that post, has anyone got a link or can tell me which company it is? I remember reading it and thinking, "nah, a company like that will never go bust" so obviously it was posted a while before the current financial climate!

Also, can someone spoonfeed me with regards to how money transfers work please?

I get the gist that I give a money transfer company my money, open an account in Oz and ask them to transfer it when I like the exchange rate but what I want to know is how far in advance should I give a money transfer company my money? Bearing in mind I'll be losing out on interest I would be getting if it is in my account.

We have some savings now that I could transfer and will be getting another lump sum in early March when I get made redundant so should I transfer in two separate lumps or wait until March and transfer it all together?

Many thanks. X

Lifedownunder

Hi Mrs Kiwi
sorry - ive just started a thread pretty much similar to you, i was told the commonwealth bank of australia is a good one - it opens an account in Aus and london for you, but as I am also in UK and havent gone yet - hopefully later this year - asked on my thread if this is the best way as i too will have a few thousand to transfer so want to ensure it is safe!

Windsor2

Hi Mrs Kiwi

Completely understand your concerns given the current economic climate. Hopefully the post below (which is the one I think you are referring to) answers your questions about safety of funds.

When using a currency broker your money goes into a client trust account which is segregated from company funds i.e your money will be protected by their Banker (HiFX's corporate bankers are Barclays). This would then come under any Government guarantee protection currently in place depending upon the amount.

When choosing a currency specialist, my check list would be as follows:
- Do they hold your money in segregated client trust accounts. Essentially this means that your funds are held separately from company funds protecting it from creditors etc (as described above).
- Do they have professional indemnity insurance protecting customers from staff fraud etc.
- Do they have direct access to SWIFT. SWIFT is the worlds largest payments and settlements network for domestic and international trades. Direct access ensures you the client benefit from faster payments and enhanced security.
- Do they have audited accounts on their website?
- Any other market memberships or associations? HiFX for example are a member of the IAMTN (International Association of Money Transfer Networks) to lobby the government to try to get the money transfer business regulated as well to protect customers from the smaller brokers.
- How many staff do they have and what turnover? Obviously a medium/large established company is more trustworthy than 2 guys in a room somewhere who have just started up!

Personally if it were me I'd always choose one of the larger brokers. The two largest are HiFX and Moneycorp. Ozforex are also recommended by users of this site. Last year for example HiFX handled over £20billion in foreign exchange and helped over 30,000 private individuals buy and sell currency. Approx 20% of our new business comes direct from customers recommending us to their friends and family. We are also trusted by over 2,000 corporate clients including The Royal Mail, HMV and Dyson.

No doubt you will have heard of Martin Lewis' site moneysavingexpert.com. The link below also contains info which may be of interest.

http://www.moneysavingexpert.com/ban...oney-transfers

Hope this helps. Please feel free to email me directly if I can be of any further assistance.

Mark Bodega
Director - HiFX

Mrs Kiwi

Hi Mark (Windsor2)

thanks for your reply - I like the fact that you are openly from HiFX and are promoting your company but also mention other transfer companies too.

Your checklist was good, could you please confirm where HiFX stands on each of your points.

Will you keep my money in a segregated client trust account so it would be separate from company funds ? I'm sure you do or you wouldn't have mentioned it but I just want to double check.

The amount I would want to transfer will be slightly under £50,000 which I believe is the current limit the government will guarantee. On an amount this size what would be the fee you charge for transferring?

Also, one last question. I know you don't have a crystal ball but in your professional opinion what do you think the exchange rate will do if the Bank of England cuts their base rate again on Thursday? I'm assuming the base rate & exchange rate are diectly linked - is this the case?

Many thanks
Kelly

kaz_loyd

Hi Mark
I have just read your thread. My parents are living in Aus now and still hold their funds with Lloyds TSB in the UK. We are trying to find the best route to arrange regular transfers between Lloyds and Suncorp. Lloyds are proving a little difficult to deal with. I have read the HiFX site. I wonder if you could advise further or provide a link at all to advise how your process works and the fees incurred please? This will be a regular monthly transfer ideally for the rest of their lives so we wish to ensure we are getting this right. Can you advise please? Thanks Mark

renth

I use Ozforex. Very efficient and pleasant to deal with, good rates too.

comet555

I also used Ozforex to tranfer most of our money over.

The first two times I moved a bit of money (enough for our car, and a bit extra) I just used my regular bank in Canada to make the transfer. It took a whole week and we got a crappy exchange rate. I was incredibly stressed out waiting for the money arrived because it took so long.

When we moved over the money for our house in Oz ($200,000 CDN) we used Ozforex. I think I called them on a Monday morning, and then arranged for my bank to transfer funds to their account in Canada. I had no clue what I was doing and they were really helpful and patient with me. By early the next afternoon we had the money in our account in Australia.

It was very easy and incredibly fast (compared to my experience with the bank). More importantly we got an excellent rate too! Before you're ready to do the transfer I'd get your account set up online (or by phone first). They need to proof of ID and a couple other things I think so I would get it done a couple months before you're ready. That way you can move the money over very quickly if needed.

As far as when to transfer the money that all depends on exchange rates and when you want to part with the money. You could wait and do it in a lump sum later, or if you think the rates good now you can do part of it and do the rest later. It all depends on you. Also, I'd check and see the rates too, you get slightly better rates the more you transfer so it might make sense doing one lump sum if it helps you get a better rate.

Anyway, that was just my experience. Whoever you deal with I probably wouldn't just go through the bank because you probably won't get the same kind of rates.

jayr

As a regular user of Tranzfers (OZFOREX) I highly recommend them.

You can set up an Austrlaian bank account through a number of sources, COmmonwealth Bank through London for example.

Once you have an account in Australia you clearly could use Commonwealth (or whomever)to do fund transfers back to the UK. these can be faster than Ozforex but are more expensive.

CommBnak, for example charge I think $27.50 at the moment. I also found that their rate was worse than Ozforex and that whichever party they use to actually do the transfer takes another cut (about $20 I think), so the money that arrives is less than you expect.

All up the Commbank costs close to $50 each transfer (but is overnight), while Tranzfers (Ozforex) costs only $15, but takes a few days.

carlap

The original question from the op was whether the exchange comapany (or via the bank accounts it uses) guarantees your funds when it has left your UK bank until it arrives in your Oz bank.

It appears HiFx do this, a number of posters say they use Ozforex (as I do), but does anybody know (for sure) if your money is guaranteed while the transfer is under way with Ozforex

There is a page http://www.ozforex.com.au/safety.htm which doesn't say much other than they are regulated and your money is safe

comet555

I'm certain Ozforex is guaranteed as well. I never would have sent my money with them if they weren't.

I just don't have the time to go digging for that information right now.

dmpp

When we moved over in October we had a HSBC bank account in UK and opened an HSBC account in OZ. We arranged my parents to be 3rd party on the account so we could just phone them and then they went into the branch and sent the money for us. I know that you can go into the branch here and get money transferred for about $25.

I guess the best advice is to open an account in the UK with the same or an affiliate bank in OZ (I think Lloyds TSB and Barclays have affiliates) that way you should be able to transfer money easier from the UK. Even if you open an account just to be used to tranfer the money you can still manage the account in the UK through the internet.

I have never used a Money transfer company before so I can't comment on them as I have always used banks to transfer.

mgilmour

This is a very timely thread given the turmoil we saw last year.

First and foremost it is important to note that no broker can offer a guarantee that funds are 100% safe. The guarantee is only as good as the broker itself; if the broker becomes insolvent then the guarantee is useless. For example if a segregated account was cleaned out by fraud on the part of a broker's employee, you are relying on your broker and their insurance (if they have it) to cover the loss.

So then the question becomes how safe are the brokers compared to each other, and for that matter, compared to the banks?

Mark Bodega from HIFX above makes very valid points, and each of them adds safety in different measures.

OzForex does guarantee client funds but how safe is that guarantee? Somewhat self serving but since this post was directed at OzForex, here are some additional factors specific to OzForex:

- OzForex is a subsidiary of Macquarie Bank which means we are subject to Macquarie’s accounting, compliance, risk management and audit framework which is very comprehensive (read onerous).
- OzForex has a large client base; over 5,000 corporate clients and 45,000 private clients, with zero complaints to the regulator.
- OzForex is head-quartered in Australia which explicitly regulates foreign exchange, and enforces minimum capital requirements similar to banks.
- OzForex has crime and professional indemnity insurance, I can’t recall the exact amount but it is north of $100mio of coverage, which far exceeds client funds we hold at any given time.
- OzForex has been completely unaffected by the global financial crisis and will post a 50% increase in profit for the 08/09 financial year, exceeding forecasts.

Like Mark above, I think our industry is very safe as long as you stay with the larger companies that have solid track records and good risk management (TravelEx, HIFX, Custom House, Money Corp).

I hope that helps!

Regards,
Matt Gilmour
Managing Director
OzForex

comet555

Helpful as always Thanks for the explanation, it all makes a bit more sense now.

Pollyana

I move money most months between Lloyds and ANZ, all done over the internet via Tranzfers - part of Ozforex. Takes about 3-4 days, costs $15 a go, very very easy, and they will move small amounts.