HSBC Currency account - moving GBP -> CAD before moving to Canada
 

Hi

I am wanting to move a large sum £XX,XXX, across to Canada.

I have not yet moved to Canada, but there is a very good chance (85%) that I'll be staying and purchasing a property after a few years of building up credit history. Due to the fluctuating exchange rate at the moment, I don't see the need to continue with the exchange rate risk, and I want to transfer my money into CAD ASAP.

As I will be a month or two until I move to Canada, I'm trying to work out how to exchange into CAD ASAP. Without yet having a Canadian bank account set up. With the rate of oil fluctuations, that could easily be 5-10% either way during that time period.

HSBC have recently released a HSBC currency account, which is free to use, and supposedly you can send money abroad to other HSBC accounts for free.

I'm planning on putting my funds from my HSBC GBP current account -> Transferwise -> HSBC CAD currency account (UK), and then move it to a HSBC CAD current account (Canada). Is it likely I'll incur any additional unnecessary fees, or does that sound the best method?

I've searched all the existing posts, but I can't see anything about the HSBC currency account.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

By reputation HSBC "free" transfers have a lousy exchange rate. You might be able to get a decent rate if you have enough to qualify for a dealing desk rate.

You might on the other hand move the money in several tranches over several weeks/ months. You will average out the exchange rate you experience, and while you won't get the maximum funds in CAD, I can absolutely guarantee that you won't get the worth possible exchange rate either.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

If I'm moving from CAD from a HSBC Currency account (HSBC UK) through to a Canadian Current account (HSBC Canada).

"We don't charge for payments between your own HSBC accounts or for payments you send to other HSBC accounts worldwide."

So effectively I'll be avoiding the HSBC exchange rate, that's what I'm trying to ask.

Thanks!

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

Any time you switch between two currencies there is necessarily an exchange rate, meaning the amount of one currency will give you in exchange for a unit of another currency.

If HSBC will give you C$1.84 for each £1 but another bank will give you C$1.86, and an on-line currency broker C$1.88, then the HSBC transfer is not "free", you have paid 2c-4c/£1 to HSBC that you could have saved by using a more competitive bank or broker. ..... The banks don't like you to understand this when they draw you in with their "free transfer" marketing shtick.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

What they mean by this is they don't charge for the Telegraphic Transfer. This fee would normally be charged when transferring funds from one bank to another.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

As per the original post, that isn't the intention. I will be moving CAD from a HSBC currency account in the UK, to CAD in a HSBC current account.

So as far as I am aware, there is no exchange done through HSBC. As the money never moves from one account as sterling.

My understanding was that it would be free to transfer from CAD (UK account) -> CAD (CANADA account).

However there is no commentary on this bar a paragraph on the website which suggests its free, but as we both know, free doesn't necessarily mean free. Hence the thread to see if there is something hidden that I was unaware about.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

So if I have already exchanged it through transferwise, moving from CAD -> CAD abroad, should incur no fees at all?

Thanks

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

That is completely inconsistent with what you said in post #1 above, where you talked about removing exchange rate risk. Please get you story straight because at the moment I feel like you have been completely wasting my time!
Do you currently hold GBP or CAD in your account in the UK? :unsure:

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

I'll try and be as clear as possible. As per my original post:

Currently: £XX,XXX in HSBC current account (HSBC UK)

£XX,XXX exchanged through transferwise to CAD, and then paid into a HSBC currency account (HSBC UK)

THEN: $XX,XXX in HSBC currency account (HSBC UK)

$XX,XXX transferred from HSBC currency account (HSBC UK) into a HSBC current account (HSBC Canada)

FINALLY: $XX,XXX in HSBC current account (HSBC Canada).

So as far as I'm aware, I will not be touching the HSBC exchange rate. The reason for doing this, is that I can not yet open a HSBC current account in Canada, so if I exchange it now, I can avoid any future exchange rate fluctuations, hence removing any future exchange rate risk.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

So you're going to use transferwise for the exchange? OK. So what's your question - you can leave it in HSBC in the UK until you move to Canada, can't you? :unsure:

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

I'm exchanging it through TransferWise, that isn't HSBC?

I don't know how clear I need to make that.

I am not exchanging the money from GBP-> CAD in HSBC. I'm using HSBC to hold GBP, and CAD. I am not using them as a means to exchange the money.

If I'm making a mistake, please tell me as I cannot see it!

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

I realise my error :o and changed my question back to you (above).

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

No problem, I assumed you had missed the transferwise bit.

"I'm planning on putting my funds from my HSBC GBP current account -> Transferwise -> HSBC CAD currency account (UK), and then move it to a HSBC CAD current account (Canada). Is it likely I'll incur any additional unnecessary fees, or does that sound the best method? "

and

"So as far as I am aware, there is no exchange done through HSBC. As the money never moves from one account as sterling.

My understanding was that it would be free to transfer from CAD (UK account) -> CAD (CANADA account).

However there is no commentary on this bar a paragraph on the website which suggests its free, but as we both know, free doesn't necessarily mean free. Hence the thread to see if there is something hidden that I was unaware about."

I'm just trying to make sure I'm only feeding it through fees once (transferwise), and I'm not charged for any exchanges twice (as effectively there is two steps). HSBC currency accounts are really new, and nobody in branch seems to know anything about it, and was wondering if anyone here had used them.

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

I haven't read the whole of this thread but just to say that once you have an account with HSBC Canada, you can open a Sterling account.


This allows you to move GBP in GBP. However, your money is not insured with the banking system here if in a foreign currency.

I'm sure there are drawbacks as well as pluses with this.

My overall position on transferring money from the UK now is that I won't do it anymore unless I'm desperate as it's too stressful trying to get it right with the exchange rate.

S

Re: HSBC Currency account - moving GBP -> CAD before moving to Canada
 

Thanks thats interesting, so GBP -> GBP is free?

This was probably blindingly obvious that this should work. But as always, I know of many things people get charged for by simply being unaware of.