Pulaski

At the level of any one remitter, it doesn't work on offsetting transfers, though some remitters may aggregate transactions and do some internal netting off.

The balance and flow on a larger scale is exactly why exchange rates fluctuate, as the currency traders need to find a buyer for all their sales and a seller for all their purchases.

GeorgeMartell

Correct.

Some brokers are peer to peer but other brokers will use their own capital to buy the currency you want and wait for your funds to arrive before they send your currency to your designated account.

expatrobe

Again thanks, George, pulaski, lansbury, et al. Hopefully my returning to this topic won't elicit too much rolling of eyes but instead generate more pearls of your wisdom!

OK, so I finally had time to study the World First website with a view to moving forward with my first transfer/exchange using someone other than my high street bank.

Their site, and a subsequent phone chat, satisfactorily answered my further questions about the process and procedure, so, combined with lansbury's actual positive experiences using them, I decided to register as the first step towards executing my first transaction with them.

Very quickly my feet started getting colder. I was asked to create a password. Underneath the entry box is a barometer that "grades" how good the choice of password is. Stopping at just a very few letters and numbers understandably keeps one in the category of "you can do better than that." By the time I had added the full intended password, it graded me up a level to a begrudging and arguably patronizing "we'll score this one as mediocre."

I already had typed in a lot of letters and numbers, but to increase the barometer's level to expressing approval, I typed in more. Still "mediocre". So then I created a really long string of random letters and numbers, and I realized "mediocre" was the highest grade I was going to get.

I called them and the bloke gave me the expected response along the lines of "well, we always check to make sure a transaction is legit" etc., adding that the barometer's assessment was just a bit of fun. I responded that it was not fun thinking that I am entrusting a significant transaction to a company who has advised me that the password I created, no matter how complex, is considered "mediocre" by them. From the perspective of a worst-case viewpoint, one could conjure up a scenario in which they respond to having lost one's money with "well, our records shows you settled for mediocre security despite our having specifically warned you of this."

He responded by saying he would have his web techs look into the issue.

So, my $64,000 dollar question [that wasn't the amount I was moving over, by the way, but now I know the relevance of that saying!] for you: would you go ahead with using this company?

If not, any recommendations for another? Thanks in advance.

BTW: I just realized there's another thread discussing seemingly a similar topic, but I posted this based on a "favorite" I had saved on my browser specifically linking this thread. So I see from the other thread "xe" as another option. But I think my issue above is unique and still merits leaving this post up, especially as I do wonder to what extent other members here would be put off by the experience I have described.

Pulaski

People hate passwords, and have to be cajoled into using a "strong" password, so I can understand why they tried to inject a little humour into the process. In short, no it wouldn't worry me too much if there were no other factors to concern me.

Pick a better password by picking a word of at least 8 characters then switch letters for symbols or numbers that maintain the memorability of the password for you such as s->$, l->1, o->0, h->4, e->3, or t->+ or other symbols if allowed. Also an upper case letter somewhere in the word would help.

dunroving

Seems the dollar not only stopped it's dramatic fall but has bounced back up ...

Passwords? I hate 'em, but I'd be a lot more worried if the company said "Great password!" when you'd only typed "Mum" - surely?

lansbury

I wouldn't worry about the password. The only criteria really is are you happy with it. I think by now we all have a good idea of what a password should contain.

They also have another level of security in that you are asked security questions. When logging in, if you don't authorize that computer, it asks you for letters from your answers. As an example what is the 2nd and 5th letter of the first school you attended. I have been very satisifed with World First and have certainly found them easier to deal with than my UK bank.

expatrobe

Yet again major thanks for the responses. Great forum with quality posters.

Like most of us I've been juggling a number of balls so I'm only now turning again to my GBP to USD project.

I haven't been idle, though, but I found that lansbury is, as usual, insightful in mentioning that UK banks can be the cumbersome part of the process. Mine has eaten up a lot of my time recently, jumping through their security and bureaucratic hoops.

On a side note it looks like the Worldfirst techies really did go in and make adjustments to their "responso-meter" and when I went back to register, using again a sensibly complex password, but slightly modified courtesy of a Pulaski suggestion, it responded "High five! This is strong", and I couldn't put a foot wrong thereafter!

So anyway [fanfare] time to actually taking the plunge, but beforehand a few more crucial questions for the esteemed panel, if I may.

At the time I previously contacted WF the "bank rate" was 1.52 [unfortunately it's slipped significantly since then] and based on that, and the amount being moved over, WF quoted me a rate of 1.5070 -- about a 1% commission. It seems the numbers do reflect that.

Is this what I should expect? How do I know if I'm getting a truly competitive rate? Is it advisable to get firm quotes prior to moving money into the "middleman" account? If one has already moved it to the middleman, how does one keep them honest since, arguably, one has allowed oneself to be "captured"?

Of course, customers planning to move future amounts across will not take kindly to being exploited when captured, so I guess that's one big incentive for the broker to treat them well.

notonuksoil

I use WF and have always found them great to deal with. When we transferred a large sum (over 150K GBP) we "booked" a rate we were happy with. We transferred our UK pounds into their UK account and had to wait a few weeks till the market hit the rate we were happy with. When we have transferred smaller amounts (less than $2k) we just go with the current rate they quote us.

lansbury

I find World First exchange rate to be from 1 to 2 cents below the spot rate, depending on the amount to be exchanged. That is competitive to all the companies that work that way. The only differing comparison is Transferwise who give you the spot rate but charge a 0.5% fee. If you have an account with WF you can get the actual rate online before accepting the deal or not. Likewise with Transferwise. That way you can see who gets the most dollars to your bank.

Two other points to consider. WF use wire transfer it gets to the US the same day it leaves the UK, but your US bank will charge a wire transfer fee. Ask them what it is. Transferwise use (I'm having a SAGA moment can't think what it is called, the equivalent of UK online transfer). It takes a few days and you get the rate which prevails at the time they send it, but there is no fee charged by the US bank. Could be more or less than when you took out the contract.

Once you agree a contract you are locked in. Neither in my experience will make any attempt to change a contract after it has been agreed.

jb82

I've used XE trade for about 6 years now with absolutely no problems. They accept UK faster payments for bank transfers and can deposit funds into your US bank using ACH which is free but takes a few days.

The rates seem a little lower than those other options mentioned Transferwise and Worldfirst. I think I'll give those a go sometime to see if they are any better. My account is currently pending review for Worldfirst. My password was considered strong too.. I don't think I had to give so much information to XE trade such as passport details and social security info. Transferwise looks a lot simpler to use so I may try that one first! Also the bank fee my mean worldfirst is more expensive than XEtrade for low amounts. XEtrade only allows me to move 13000 pounds or so at a time so not useful for house sales etc.

Anyway back to the original post. Curse these current low exchange rates!!! My income comes in in UK pounds. I'd be making thousands of dollars more if we were back up to 1.7 or even 1.6!

jb82

Okay now world first want copies of passports and address documents. Yikes but I suppose they take security seriously.

Michael

Hopefully the rate was locked in at 1.5070 since the current GBP to USD bank rate is 1.4738. The last time the GBP was over $1.50 was March 12th.

https://www.bloomberg.com/quote/GBPUSD:CUR

lansbury

Yes they do. They will also very occasionally check those details haven't changed. Just a quick phone call to the US office to confirm.

jb82

Have transferwise ever asked for anything? I signed up and it was pretty basic information only. It looks like just bank info for a transfer.

brit_usa2014

1.47? Xe is giving me 1.45 right now..

Thankfully I managed to transfer most of my funds on/before Mar 12th and apart from once got the exchange rate at 1.51..