Transferring money from UK bank to NZ? Advice needed!
#16
Re: Transferring money from UK bank to NZ? Advice needed!
Thanks. I just wondered if there was a better rate by using a particular route for large transfers.
I understand that we can open a NZ bank account from here in the UK and transfer funds into it before we leave. We then have to activate the account in person on arrival before we can use the funds.
Foreign exchange is not like buying a giant pack of toilet paper, where you get 10% extra free. With foreign exchange the exact "mid rate", the half way point between the buy and sell rates, is the best possible rate, but then the bank or broker needs to make something to cover their costs and make a profit, and on the FX markets the dealing desk rate gives them a wafer-thin margin.
Think about it for a moment, hypothetically if you found someone in NZ looking to exchange the same amount of NZD for GBP, and you agreed to do a direct deal with them, without involving a bank or FX broker, what rate would you both find acceptable? .... The person with NZD to exchange wouldn't agree to give you an extra percentage, as they would be down on the deal, and you wouldn't give them extra either - the fair rate for both of you would be precisely the mid rate. Therefore the closest you can get to that rate, as close as possible to the mid rate, is the best deal available for you.
Last edited by Pulaski; Apr 27th 2019 at 3:14 pm.
#17
Just Joined
Joined: Mar 2019
Posts: 16
Re: Transferring money from UK bank to NZ? Advice needed!
Thanks, well explained.
#19
Forum Regular
Joined: Nov 2014
Location: Auckland
Posts: 35
Re: Transferring money from UK bank to NZ? Advice needed!
That is a very good explanation.
I shopped around the FX companies before we left the UK and had varying offers. The smaller companies will negotiate with you. I recommend Halo Financial. My dealings are by virtually instant return emails between myself and my appointed account manager. I can also use the 'phone if necessary, but never need to. In order to see what the account manager is viewing for the mid point interbank rate, I monitor it on the iPad app XE Currency.
No matter which organisation I used I found that the the banks deducted $25 for the actual exchange transfer. Halo Financial use Barclays to wire the money and I receive it direct into our NZ bank.
https://www.halofinancial.com/
I shopped around the FX companies before we left the UK and had varying offers. The smaller companies will negotiate with you. I recommend Halo Financial. My dealings are by virtually instant return emails between myself and my appointed account manager. I can also use the 'phone if necessary, but never need to. In order to see what the account manager is viewing for the mid point interbank rate, I monitor it on the iPad app XE Currency.
No matter which organisation I used I found that the the banks deducted $25 for the actual exchange transfer. Halo Financial use Barclays to wire the money and I receive it direct into our NZ bank.
https://www.halofinancial.com/
Last edited by 462; Apr 30th 2019 at 9:10 am.