Regular money transfers from the U.K. to Spain
 

There seem to be quite a few companies around promising the best rates, no fees etc etc.. I am confused - does anyone have any advice based on actual experience?

Re: Regular money transfers from the U.K. to Spain
 

Hi - we have used HIFX a number of times and the rate we got on those dates seemed pretty competitive - funds arrived quickly and communication was good

As you say there are quite a few companies to choose from

Re: Regular money transfers from the U.K. to Spain
 

They all make money out of you somehow, no matter what they claim. We used Custom House for four years until the takeover, they said highest rates (true) usually 1/2% under the business rate. They said no charges, not true, it took us 6 months of underpaying our mortgage to track down what was happening, they were charging us £12 for the wire transfer every month, they deducted this from the amount we were transferring!

We have recently changed over to Currnecies Direct, again no charges, however the rate we got on our last transfer was 1.167 to the £ when the business rate was 1.204. So they made their money on the exchange rate offered. At the end of the day it doesn't matter which company we used, the charges no matter how disguised work out about the same.

You have to be very canny over what rate is actually based on. We have found out their is a difference between the inter-bank rate and the business rate. This can be as much as the difference above.

Re: Regular money transfers from the U.K. to Spain
 

We have used HIFX for almost 2 yrs since we came to Spain, and can't wait to be rid of them. We have lost hundreds of euros by using them. The rate is fixed for a 12 mths period and you sign a contract. We agreed last November with the rate fixed at 1.06. When I enquired about re-setting the contract when the rate went up, I was told it can't be done, so I asked about cancelling the contract and they wanted £700 to cancel. If the rate is high when you agree with them then you can benefit but not when the rate is low with the prospect of it getting higher. We have learned the hard way over the last couple of years. We aren't sure about who to use when the contract finishes. Moneycorp is one option who have a variable rate, and no fees to pay if you want to cancel.

Re: Regular money transfers from the U.K. to Spain
 

When it comes to currency transfer there is no such thing as a "free lunch".

Someone, somewhere makes a profit and you pay that profit.

Re: Regular money transfers from the U.K. to Spain
 

The more money you transfer the better rate you get. As everyone says the companies all have to make a profit somehow so will usually offer something under the published rate.

We try to transfer money no more than twice a year and have used both Moneycorp and HIFX. Both companies have been helpful and efficient in different ways. When we were moving here the rate was dropping fast and Moneycorp saved us a fortune by advising us when the rate was at its best. We were moving the money to buy our house then so it really made a difference.

I like the online HIFX service for small amounts because you don't have to speak to a person. You can see the rate on screen and know exactly what you are getting. I usually put different amounts in to see how that changes the rate before deciding how much to move.

Recently my husband wanted to move money and we checked the rate on the HIFX system. He has the Moneycorp account though and when he phoned them they quoted him 2 cents to the pound less than HIFX. As soon as he told them that they matched the HIFX rate.

So if you are prepared to keep an eye on the rates yourself and have some flexibility on when you move the money you can control it all yourself. No need to be locked into any contract. Shop around and get the best deal.

Good luck.

Rose

Re: Regular money transfers from the U.K. to Spain
 

I use this company smartaccounts@smartcurrencyexchange. they charge Five pound a month. My last months transfer was 1,20 to the £

Re: Regular money transfers from the U.K. to Spain
 

Absolutely untrue. Nationwide flexaccount allows Spanish ATM withdrawals at bank rate and no charge.

Unfortunately they are introducing charges in November.

The cheapest way then will be to get a clarity reward credit card from the Halifax. Once again you get bank rate (ie 2% better than HFX, Caxton etc etc) and no charge for using the ATM.

BUT. They do charge interest from the day you withdraw the money, until statement payment date. For me the charge is 1% for the month until I pay the statement. however if you spend £300 in a month they give you £5 anyway. So 5 £100 withdrawls in a month are effectively "free" if you spend £300 (again with no fx load.)

Another ploy is to transfer the funds to your credit card as soon as you withdraw the money - then you only pay a day or two interest. I have tried this but have not had my 1st statement so can't comment on real cost.