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Transferring money from the UK to UAE

Transferring money from the UK to UAE

Old Jul 1st 2009, 3:04 am
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Default Transferring money from the UK to UAE

Hey guys

I am moving in a few weeks time to live at the UAE. I have a Lloyds TSB bank account at the UK, and I wonder what's the best way to make regular transfers from the UK to the UAE?

I look forward to hearing from you
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Old Jul 1st 2009, 3:27 am
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Default Re: Transferring money from the UK to UAE

foreign exchange brokers are the way forward, this forum is sponsored by one of the big ones, but I however find they tend to take a wider margin then others, have a good contact if you want it pm me
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Old Jul 2nd 2009, 5:15 am
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Default Re: Transferring money from the UK to UAE

Hi Yasser99,

There are a couple of options available to you when you wish to transfer money from the UK to an overseas bank account. The first option would be a Regular Payment Plan. The benefit of using such a service is that you are eliminating any risks of movement on the exchange rate. This is achieved as Brokers are usually able to fix the rate for a certain period of time, meaning that the same amount of sterling leaves your account in the UK and more importantly the same amount of Dirham’s hit your UAE account (or overseas account), regardless if the rate has moved or not. Many reputable Brokers such as HiFX will be able to offer you this service. We normally find that our clients prefer this method as it ‘avoids risk’ and as payments are usually taken by Direct Debit its hassle free.

The second option would be to transfer funds on a ‘spot’ basis meaning that you would action a transfer when you need it. Obviously there would be a ‘risk’ element involved in this as the rate would not be fixed and you would take the rate at the time of arranging the transfer. Only you however can ultimately decide which path you wish to take.

It’s certainly worth making a few calls and shopping around and finding out what different Brokers and Banks have to offer you. With both options it normally pays to use a Broker rather than a Bank, as Brokers will not normally charge any transfer fees, which over a year could cost you a fair amount if you were to use a bank. Some Brokers such as HiFX will also refund any receiving fees which the overseas bank may charge.

I hope the above has helped. Please feel free to call us on 01753 859 159 or visit our website below if you have any further questions.

All the best for the move!

Regards

Last edited by Windsor2; Jul 2nd 2009 at 5:18 am.
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Old Jul 2nd 2009, 5:35 am
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Default Re: Transferring money from the UK to UAE

Thank you Windsor for this wonderful insight - I really appreciate your support

The broker's option seems attractive and less risky, but I still have one question please with regard to the fees - I am aiming to transfer relatively small amounts of money (around 2,000 pounds every month); will I still be able to use brokers?
If yes, could you please tell me - roughly speaking of course - how much fees will I end up paying over the year (i.e. 12 transfers; each worth £2,000)?

I remember that I once used Lloyds TSB bank to transfer the same amount to a bank account in Saudi Arabia - and the bank charged me £25 pounds including receiving fees that it.

I look forward to hearing from you guys

Thanks again hitchw - you have already provided me with invaluable information too

I am so grateful
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Old Jul 3rd 2009, 12:52 am
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Default Re: Transferring money from the UK to UAE

Originally Posted by Windsor2
Hi Yasser99,

There are a couple of options available to you when you wish to transfer money from the UK to an overseas bank account. The first option would be a Regular Payment Plan. The benefit of using such a service is that you are eliminating any risks of movement on the exchange rate. This is achieved as Brokers are usually able to fix the rate for a certain period of time, meaning that the same amount of sterling leaves your account in the UK and more importantly the same amount of Dirham’s hit your UAE account (or overseas account), regardless if the rate has moved or not. Many reputable Brokers such as HiFX will be able to offer you this service. We normally find that our clients prefer this method as it ‘avoids risk’ and as payments are usually taken by Direct Debit its hassle free.

The second option would be to transfer funds on a ‘spot’ basis meaning that you would action a transfer when you need it. Obviously there would be a ‘risk’ element involved in this as the rate would not be fixed and you would take the rate at the time of arranging the transfer. Only you however can ultimately decide which path you wish to take.

It’s certainly worth making a few calls and shopping around and finding out what different Brokers and Banks have to offer you. With both options it normally pays to use a Broker rather than a Bank, as Brokers will not normally charge any transfer fees, which over a year could cost you a fair amount if you were to use a bank. Some Brokers such as HiFX will also refund any receiving fees which the overseas bank may charge.

I hope the above has helped. Please feel free to call us on 01753 859 159 or visit our website below if you have any further questions.

All the best for the move!

Regards

Hi Windsor,

When you say "regular payment" do you mean a forward contract...? I was under the impression that with rp's you set up the amount with your bank that you want to transfer in sterling per month, and then when you receive it you give the best rate at the point of receiving the funds...

Thanks

Will
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Old Jul 3rd 2009, 1:31 am
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Default Re: Transferring money from the UK to UAE

Windsor, correct me if i'm wrong, but in my experience there are 2 types of regular payments that brokers offer:
1) a fixed rate (ie your year of currency booked on a fwd and spread out on a monthly basis)
2) varaiable rate where you dd the funds on a certain day each month and they send out the currency at the rate that day

i suppose it depends on where you feel the rate is going as to which option you use!!!!
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Old Jul 3rd 2009, 2:17 am
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Default Re: Transferring money from the UK to UAE

Originally Posted by tim01
Windsor, correct me if i'm wrong, but in my experience there are 2 types of regular payments that brokers offer:
1) a fixed rate (ie your year of currency booked on a fwd and spread out on a monthly basis)
2) varaiable rate where you dd the funds on a certain day each month and they send out the currency at the rate that day

i suppose it depends on where you feel the rate is going as to which option you use!!!!
Exactly what I thought! Think this is one of the ways that some brokers manage to take such a margin.. they deafen you with jargon and try to confuse you into taking the option that suits them best. No offence to any of them and not slating anyone, at the end of the day, they are all in it for the profit so dog eat dog and all that...
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Old Jul 3rd 2009, 2:24 am
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Default Re: Transferring money from the UK to UAE

I agree with you hitch, i think the fixed rate shave benefits, but the margin seems alot higher if you add it up over the course of year!
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Old Jul 3rd 2009, 2:32 am
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Default Re: Transferring money from the UK to UAE

forwards are a great way to make the most of currency fluctuations that are unheard of, when the gbp-eur rate was almost at parity, I purchased a Gbp at a rate of 1.01 for 500k for 2 years... fair enough had to put up a deposit, but all in all, it has worked out well for me already!
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Old Jul 10th 2009, 3:53 am
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Post Re: Transferring money from the UK to UAE

Hi all,

Sorry I've been out of the office for a week or so hence my slightly tardy response.

Lots of questions in your posts so will try to tackle them one by one.

Firstly is a forward contract the same as a Regular Payment?

Well yes and no. In essence, a 'forward contract' allows you to buy the currency now and pay for it later thus enabling you to lock into an exchange rate. To enable you to do this most, if not all currency companies like HiFX will require you to pay a 10% deposit immediatley and the 90% balance upon the maturity of the contract. For example, if you wish to buy £50,000 worth of Euros but do not need to send them for 3 months, you can agree the exchange rate now, place a £5,000 deposit, and pay the remaining £45,000 balance in 3 months. If the exchange rate moves at all in that 3-month period this will not affect you at all, as you have bought currency at the originally agreed rate.

A regular payment plan is slightly different. Unlike the banks, the larger more established currency companies will allow customers to automate their payments via direct debit and fix the exchange rates for up to 12 month ahead so customers know exactly how much is being transferred every month.

By using direct debit, you can save people up to £300 on transfer fees alone. In addition customers make further savings as they'll also avoid the other charges - commission (most banks can charge up to 2% of the amount being transferred) and overseas receiving fees (unlike the banks the larger currency co's should also guarantee that clients will not pay any overseas bank receipt charges.

To set up your Regular Payment HiFX buys your total currency requirement up front. In order to do this the market requires a deposit as security, in the same way it requires a deposit for trading a forward contract. This deposit is equal to 1 month’s payment for each year of the contract. The deposit is not a fee and is used for the final payment(s).

Yes one or maybe two currency providers will enable you to set up an RPA which does not fix the rate for the duration on the plan.

Yes, you could undertake a spot transaction every month.

However you’ll be gambling on the exchange rate and this could lead to some sleepless nights, especially if you are on a tight budget. The RPA service is designed to remove the stress associated with organising any kind of regular international money transfer, as the whole process is automated via direct debit.

At the end of the day I wasn't trying to push one option or the other. It all depends upon what you are personally trying to achieve and your attitudes to risk.

Hope this helps and have a great weekend all.

Mark Bodega
Director - HiFX
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Old Jul 12th 2009, 10:57 pm
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Default Re: Transferring money from the UK to UAE

Originally Posted by hitchw
forwards are a great way to make the most of currency fluctuations that are unheard of, when the gbp-eur rate was almost at parity, I purchased a Gbp at a rate of 1.01 for 500k for 2 years... fair enough had to put up a deposit, but all in all, it has worked out well for me already!
Was that 1.01 for 500k GBP-EURO.If so who advised you to do that? If EURO-GBP well done!

Last edited by PhilBen; Jul 12th 2009 at 11:00 pm.
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Old Jul 12th 2009, 11:00 pm
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Default Re: Transferring money from the UK to UAE

Originally Posted by PhilBen
Was that 1.01 for 500k GBP-EURO.If so who advised you to do that?
No one advised me, I saw the rate was low, had a hunch it would pick up against me just a matter of time, spoke to my broker, he offered me that, I took it. although the pound is taking a pounding (pardon the pun) still quids in...Happy days.
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Old Jul 12th 2009, 11:01 pm
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Default Re: Transferring money from the UK to UAE

Originally Posted by hitchw
No one advised me, I saw the rate was low, had a hunch it would pick up against me just a matter of time, spoke to my broker, he offered me that, I took it. although the pound is taking a pounding (pardon the pun) still quids in...Happy days.
I take it it was EURO to Pounds?
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Old Jul 13th 2009, 3:46 am
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Default Re: Transferring money from the UK to UAE

Originally Posted by PhilBen
I take it it was EURO to Pounds?
yes, I am not a muppet...
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