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Money transfer from UK

Money transfer from UK

Old Apr 12th 2019, 6:28 am
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Default Money transfer from UK

Hello. Has anyone used a currency service to get a better exchange rate when bringing money over? (Please excuse the vague terminology, I’m not very financially literate). I sold my house in the UK and need to bring the money over to the US. The exchange rate’s crappy and I was wondering if the currency services are ok to use? There doesn’t seem to be a guarantee though, that you money is safe in the process. Anyway, wondering if anyone here had used anyone other than a bank, especially for a big transfer, and if so, who?
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Old Apr 12th 2019, 6:40 am
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Default Re: Money transfer from UK

There are several posts about this topic if you search the forum.

Must admit I was old school until fairly recently, I was having my in-laws deposit a check from my US bank account into my UK bank account to cover my UK mortgage and other expenses, but this was never more than $5k. The downside to this approach is the exchange rate is crappy, so definitely not recommended for large sums.

I just recently discovered Xoom, now part of Paypal, and I have been using them to send my money to the UK instead of checks deposited by the in-laws. But I think other folks on here use TransferWise (or something like that).
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Old Apr 12th 2019, 6:41 am
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Old Apr 12th 2019, 11:27 am
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Default Re: Money transfer from UK

Originally Posted by kevntrace View Post
There are several posts about this topic if you search the forum.

Must admit I was old school until fairly recently, I was having my in-laws deposit a check from my US bank account into my UK bank account to cover my UK mortgage and other expenses, but this was never more than $5k. The downside to this approach is the exchange rate is crappy, so definitely not recommended for large sums.

I just recently discovered Xoom, now part of Paypal, and I have been using them to send my money to the UK instead of checks deposited by the in-laws. But I think other folks on here use TransferWise (or something like that).
Take a look here for options, although as someone recently pointed out, the fees for Transferwise are over stated. This is useful in helping to understand that you have to consider fees and the exchange rate to determine the best value.

https://www.mycurrencytransfer.com/m...o-USA/5000-GBP
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Old Apr 13th 2019, 12:33 am
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Default Re: Money transfer from UK

Originally Posted by Pandorica View Post
Hello. Has anyone used a currency service to get a better exchange rate when bringing money over? ....



Try to find anyone who posts here who doesn't use an on-line FX broker- remitter!

That said for the sort of sums that result from the sale of houses, (say £50,000 up), you need to go to your bank and ask them for a "dealing desk rate" (use those words), and you will get a real-time rate comparable with the rate that corporations get, and you'll likely only a minute or two at most to decide if you want to exchange at that rate. The rate will he comparable with the on-line FX brokers, and may even be better.

Last edited by Pulaski; Apr 13th 2019 at 1:21 am.
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Old Apr 13th 2019, 7:59 pm
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Default Re: Money transfer from UK

Thank you for the replies. I’ll look at the links and on the forum.
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Old Apr 14th 2019, 1:53 am
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Default Re: Money transfer from UK

I've been using Circle recently. It's similar to TransferWise but no fees. Only issue is that you're limited in how much you can send a week. If you can plan accordingly, worth a look.
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Old Apr 14th 2019, 3:43 am
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Default Re: Money transfer from UK

No fees? How do they make their money?

You've indicated that they're far cheaper than Transferwise. That's interesting.

Last edited by Hotscot; Apr 14th 2019 at 3:47 am.
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Old Apr 14th 2019, 12:04 pm
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Default Re: Money transfer from UK

Originally Posted by Hotscot View Post
No fees? How do they make their money?

You've indicated that they're far cheaper than Transferwise. That's interesting.
They're a "crypto-finance company" and the Wikipedia article is rather hard to summarize, but they apparently have grand plans. What they seem to have done so far is consume a lot of venture capital.
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Old Apr 16th 2019, 5:01 pm
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Default Re: Money transfer from UK

Originally Posted by Pulaski View Post
They're a "crypto-finance company" and the Wikipedia article is rather hard to summarize, but they apparently have grand plans. What they seem to have done so far is consume a lot of venture capital.
Agree. They're probably burning through cash but it's worked for me. I just spread my transfers out to work within their limits. I did apply (successfully) to have my limit raised too.

That said, even pricing things at a very tight spread is likely to make them money if they have enough users. It may appear close to a wholesale mid rate but it's not so there's still money for them to make there.
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Old Apr 16th 2019, 7:17 pm
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Default Re: Money transfer from UK

Originally Posted by SpeshK View Post
Agree. They're probably burning through cash but it's worked for me. I just spread my transfers out to work within their limits. I did apply (successfully) to have my limit raised too.

That said, even pricing things at a very tight spread is likely to make them money if they have enough users. It may appear close to a wholesale mid rate but it's not so there's still money for them to make there.
I haven't used them and don't know anything about them, but either what you're saying now is correct, or what you said before, it can't be both.
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Old Apr 16th 2019, 7:34 pm
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Default Re: Money transfer from UK

Originally Posted by vespucci View Post
I haven't used them and don't know anything about them, but either what you're saying now is correct, or what you said before, it can't be both.
It can with rounding. They show a rate to a lessor degree of accuracy than available in wholesale markets. It’s still mid by retail standards but there’s still a tiny spread they can make.
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Old Apr 16th 2019, 7:38 pm
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Default Re: Money transfer from UK

Originally Posted by vespucci View Post
I haven't used them and don't know anything about them, but either what you're saying now is correct, or what you said before, it can't be both.
Agreed. Banks, bureau de change, and on-line FX brokers all have to make their money some how, and it is through one or more of (i) fixed fee, (ii) percentage fee (iii) buy-sell spread (i.e. buy at less than the mid rate, sell at more than the mid rate).

Providers of exchange services often have a habit of trying to mislead the public by bragging that one or two of the ways of extracting their revenue is low or zero , and hoping that the customer doesn't notice that they're being screwed on the third type of charge - with the classic one being "we charge no commission", but the spread is enough for them to get their share. In truth no provider of FX services can truly charge no fees and exchange at the mid rate*, other wise they have no revenue and can't stay in business.

* There are some rare examples where this might be possible in one direction (e.g. sell but not buy) and/or where there are government exchange controls and the FX service is taking advantage of people looking to trade at unofficial rates and/or transfer money out of a currency of out of a country illegally, where customers wanting to exchange in one direction will accept an artificially poor exchange rate, so there is a buy-sell spread, but it just isn't centered on the official mid-rate.
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Old Apr 16th 2019, 7:42 pm
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Default Re: Money transfer from UK

Originally Posted by SpeshK View Post
…. It can with rounding. They show a rate to a lessor degree of accuracy than available in wholesale markets. It’s still mid by retail standards but there’s still a tiny spread they can make.
Mid is mid, there's either spread, or their isn't, and if they are hiding behind "rounding" then they are guilty of pretending that there is no spread, while actually charging a spread, albeit perhaps a small one …. See my post above!
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Old Apr 16th 2019, 8:30 pm
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Default Re: Money transfer from UK

Originally Posted by Pulaski View Post
Agreed. Banks, bureau de change, and on-line FX brokers all have to make their money some how, and it is through one or more of (i) fixed fee, (ii) percentage fee (iii) buy-sell spread (i.e. buy at less than the mid rate, sell at more than the mid rate).

Providers of exchange services often have a habit of trying to mislead the public by bragging that one or two of the ways of extracting their revenue is low or zero , and hoping that the customer doesn't notice that they're being screwed on the third type of charge - with the classic one being "we charge no commission", but the spread is enough for them to get their share. In truth no provider of FX services can truly charge no fees and exchange at the mid rate*, other wise they have no revenue and can't stay in business.

* There are some rare examples where this might be possible in one direction (e.g. sell but not buy) and/or where there are government exchange controls and the FX service is taking advantage of people looking to trade at unofficial rates and/or transfer money out of a currency of out of a country illegally, where customers wanting to exchange in one direction will accept an artificially poor exchange rate, so there is a buy-sell spread, but it just isn't centered on the official mid-rate.
You would think that they have to make money but in today’s economy, that’s not necessarily the case right? Look at the Uber IPO.

There are ways to make money by becoming the dominant player. You’re gonna gain lots of independent, uncorrelated aggressive order flow. It’s gonna be retail sized but with enough of it, sure. I don’t claim to know their business model but I can see money being made there.
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