Buying Euros in USA
Dec 19th, 2009, 07:54 PM
#1
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Buying Euros in USA
I go to Europe every year and it seems that the dollar is always worth less at the time I travel compared to earlier in the year. For example, last spring the dollar cost 1.28 for one Euro. When I went to Europe in Sept. one Euro cost me close to $1.50. The dollar has been gaining strength the past week . If the price drops into the mid or low $1.30 for one euro range I would like to buy Euros then and have them for my trip later this year. I won't mind it if the Euro weakens more after I purchase the Euros as I have been paying well over $1.40 per Euro my last couple of trips. Can anyone tell me where and how I can buy Euros in the USA without getting ripped off by fees?
thanks
Orrin
thanks
Orrin
Dec 19th, 2009, 08:54 PM
#3
Just some of the issues:
1) Security. You have to carry all that cash w/ you - not a particularly smart move.
2) You lose the interest/use of all that cash for the next however many months
3) The € dropped 3 cents over the last few days, so what if that trend continues? You'd end up losing even more.
Just a bad idea all the way around . . . .
1) Security. You have to carry all that cash w/ you - not a particularly smart move.
2) You lose the interest/use of all that cash for the next however many months
3) The € dropped 3 cents over the last few days, so what if that trend continues? You'd end up losing even more.
Just a bad idea all the way around . . . .
Dec 20th, 2009, 05:13 AM
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Very very doubtful the exchange will ever go down to 1.30 again.
The cost to purchase in the USA averages 6-8%; the average cost to obtain from Europe ATM is 3% (foreign curr conv fee) ... so you have to figure out what your break-even point is.
The cost to purchase in the USA averages 6-8%; the average cost to obtain from Europe ATM is 3% (foreign curr conv fee) ... so you have to figure out what your break-even point is.
Dec 20th, 2009, 05:28 AM
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Here's what I'll do, in my effort to aid humanity in general and myself in particular.
I have the answer to this problem...
Everyone send me lots of cash. I don't care what it is, USD, Mexican Pesos, Australian, Canadian, Rubles. Make it at least say, oh, ten thousand of whatever you send. The equivalent of a few million U.S. dollars should be sufficient.
Now, I'll force myself to fly off to somewhere in Europe and wait. Just when the moment is right, well then I'll buy lots and lots of euros. I'll mail them back to you. I really will.
There will be some slight handling costs involved, but that won't be really all that much. Oh, and there will also be some slight charges for me having to hang out for a long time. But it'll all come out in the wash.
I also have this Nigerian Prince friend who keeps sending me emails telling me about this great investment, so I should be able to actually make lots more money for us all.
Send only cash.
Mail to
MCF - My Currency Friend
General Delivery Mail
New York, NY
(This is a joke guys, please don't actually do this) dave
I have the answer to this problem...
Everyone send me lots of cash. I don't care what it is, USD, Mexican Pesos, Australian, Canadian, Rubles. Make it at least say, oh, ten thousand of whatever you send. The equivalent of a few million U.S. dollars should be sufficient.
Now, I'll force myself to fly off to somewhere in Europe and wait. Just when the moment is right, well then I'll buy lots and lots of euros. I'll mail them back to you. I really will.
There will be some slight handling costs involved, but that won't be really all that much. Oh, and there will also be some slight charges for me having to hang out for a long time. But it'll all come out in the wash.
I also have this Nigerian Prince friend who keeps sending me emails telling me about this great investment, so I should be able to actually make lots more money for us all.
Send only cash.
Mail to
MCF - My Currency Friend
General Delivery Mail
New York, NY
(This is a joke guys, please don't actually do this) dave
Dec 20th, 2009, 09:57 AM
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No - buying them her you will be ripped off by fees - typically 8 to 10%. So unless the difference in rate between when you buy and when you go is 6/7% or more you will pay at least as much as buying them here.
Dec 20th, 2009, 03:51 PM
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In terms of raw costs, there is no cheaper place to get euros...than in Europe. The problem with timing, is first, no one can guarantee you the direction. There are trends, but if you can get currency at 5-10% cheaper over there, are you willing to guess the direction and be at least that much ahead before you break even?
Secondly, if you guess wrong, are you going to be regreting and be on your trip feeling bad about it because you 'overpaid'?
Do the math of how much per day a 5/10/15% swing in currency really means, and then decide if...say $20..is really going to make/break a trip.
If costs are an issue, you can, for example, save more money by going off season than any currency wagering.
Secondly, if you guess wrong, are you going to be regreting and be on your trip feeling bad about it because you 'overpaid'?
Do the math of how much per day a 5/10/15% swing in currency really means, and then decide if...say $20..is really going to make/break a trip.
If costs are an issue, you can, for example, save more money by going off season than any currency wagering.
Dec 20th, 2009, 05:39 PM
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I want to thank everyone for their input. So far Wells Fargo seems like the cheapest way to go. If I buy the Euros I will not be upset if the Euro is even weaker when I travel as I have been paying $1.40 to $1.50 per Euro may last two trips. So if I can buy them in the low $1.30 range and the Euro weakens further I won't mind.
Is anyone familiar with Travelex cash passport? Will this accomplish my goal? I found this on the web?:
Consider the Travelex Cash Passport, which debuted in euro- and pound-denominated versions in the U.S. last May.
You give Travelex your money and it converts it into euros (or pounds) at today's rate. You can then spend those euros (or pounds) whenever you want in the coming months and years.
The Cash Passports are pre-loaded travel cards. There is no bank account involved. You put a set amount of money in the account and spend it anywhere that accepts Mastercard. (The cards look just like credit cards and have the Mastercard logo on them.)
If you lose the card, call Travelex and it will stop withdrawals on that card and issue you a new one. Traveling with someone else? You can have a second card for them with access to the same shared pool of money, so that both of you stick to your joint travel budget.
You can use the card to pay for hotel stays, restaurant meals, or purchases at stores—without any fee.
You can also withdraw euros from ATMs that operate on the Mastercard, Maestro, and Cirrus systems. (Travelex says its Cash Passports are on so many ATM networks that it has never heard of anyone being unable to withdraw cash from an ATM in western Europe.) As usual, the ATM you use may charge a fee of about a couple of dollars. Plus Travelex will charge a fee €1.75 or £1.25 per ATM withdrawal, but no percentage-based fees.
On the plus side, you don't pay conversion fees (remember the 3 percent fee we talked about above?) or a transaction fee (that's either flat like $15 or a percentage, like about 1 percent). You skip those.
On the downside, there is a different, pesky fee to worry about—but we'll tell you now how to avoid it. You see, if you don't have "activity" on your card within 12 months, Travelex will charge you an inactivity fee (roughly between $3 and $4 a month). But you can avoid this fee by topping off the card—for free—with a little more cash every 12 months.
A card costs $10 to buy from a Travelex retail location. (Some banks also sell the card and they may charge a small purchase fee, too.)
We mentioned above that banks mark up the cost of euros over the wholesale rate quoted on websites like xe.com—which are the rates used when money is transferred electronically between banks. Consumers pay a markup of about 7 percent on these rates when they withdraw money through an ATM. Travelex charges a similar markup over wholesale: It's approximately 5.5 to 6.5 percent. When you factor in the $10 fee for the card, buying a Travelex Cash Passport is a competitive option compared with buying euros from a bank or currency dealer.
Cash Passports are sold at more than 100 retail Travelex locations in the U.S. Please be sure to bring a photo ID to buy a card.
You may also buy it online, thought the process appears to be more complicated, plus you have to pay a shipping fee of $15.
You'll soon also be able to purchase the card at community banks, credit unions, and U.S. Bank branches. We recommend you look up the nearest seller of the card at Mastercard's locator site.
Is anyone familiar with Travelex cash passport? Will this accomplish my goal? I found this on the web?:
Consider the Travelex Cash Passport, which debuted in euro- and pound-denominated versions in the U.S. last May.
You give Travelex your money and it converts it into euros (or pounds) at today's rate. You can then spend those euros (or pounds) whenever you want in the coming months and years.
The Cash Passports are pre-loaded travel cards. There is no bank account involved. You put a set amount of money in the account and spend it anywhere that accepts Mastercard. (The cards look just like credit cards and have the Mastercard logo on them.)
If you lose the card, call Travelex and it will stop withdrawals on that card and issue you a new one. Traveling with someone else? You can have a second card for them with access to the same shared pool of money, so that both of you stick to your joint travel budget.
You can use the card to pay for hotel stays, restaurant meals, or purchases at stores—without any fee.
You can also withdraw euros from ATMs that operate on the Mastercard, Maestro, and Cirrus systems. (Travelex says its Cash Passports are on so many ATM networks that it has never heard of anyone being unable to withdraw cash from an ATM in western Europe.) As usual, the ATM you use may charge a fee of about a couple of dollars. Plus Travelex will charge a fee €1.75 or £1.25 per ATM withdrawal, but no percentage-based fees.
On the plus side, you don't pay conversion fees (remember the 3 percent fee we talked about above?) or a transaction fee (that's either flat like $15 or a percentage, like about 1 percent). You skip those.
On the downside, there is a different, pesky fee to worry about—but we'll tell you now how to avoid it. You see, if you don't have "activity" on your card within 12 months, Travelex will charge you an inactivity fee (roughly between $3 and $4 a month). But you can avoid this fee by topping off the card—for free—with a little more cash every 12 months.
A card costs $10 to buy from a Travelex retail location. (Some banks also sell the card and they may charge a small purchase fee, too.)
We mentioned above that banks mark up the cost of euros over the wholesale rate quoted on websites like xe.com—which are the rates used when money is transferred electronically between banks. Consumers pay a markup of about 7 percent on these rates when they withdraw money through an ATM. Travelex charges a similar markup over wholesale: It's approximately 5.5 to 6.5 percent. When you factor in the $10 fee for the card, buying a Travelex Cash Passport is a competitive option compared with buying euros from a bank or currency dealer.
Cash Passports are sold at more than 100 retail Travelex locations in the U.S. Please be sure to bring a photo ID to buy a card.
You may also buy it online, thought the process appears to be more complicated, plus you have to pay a shipping fee of $15.
You'll soon also be able to purchase the card at community banks, credit unions, and U.S. Bank branches. We recommend you look up the nearest seller of the card at Mastercard's locator site.
Dec 20th, 2009, 05:51 PM
#15
>>> So far Wells Fargo seems like the cheapest way to go. If I buy the Euros I will not be upset if the Euro is even weaker when I travel as I have been paying $1.40 to $1.50 per Euro may last two trips. So if I can buy them in the low $1.30 range and the Euro weakens further I won't mind.<<<
Huh - maybe I'm not following you but this simply doesn't make sense . . . .
• WF is not cheaper than others - just isn't.
• Where does $1.30 come from? Are you confusing the buy and sell rates?
• And finally - the Travelex cards make no sense for anyone except the tiny minority who, for whatever reason, cannot qualify to get their own ATM/debit cards.
Huh - maybe I'm not following you but this simply doesn't make sense . . . .
• WF is not cheaper than others - just isn't.
• Where does $1.30 come from? Are you confusing the buy and sell rates?
• And finally - the Travelex cards make no sense for anyone except the tiny minority who, for whatever reason, cannot qualify to get their own ATM/debit cards.
Dec 21st, 2009, 09:48 AM
#19
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As Janisj showed, Wells Fargo is charging you for the service, at a rate higher than you would pay from an ATM.
Since you seem to favor the WF solution, how about a compromise? Get half of your travel money from them, half from an ATM over there. Why gamble ALL of your travel spending on assuming the dollar is going down. Diversification...one of the rules of investing
Since you seem to favor the WF solution, how about a compromise? Get half of your travel money from them, half from an ATM over there. Why gamble ALL of your travel spending on assuming the dollar is going down. Diversification...one of the rules of investing
Dec 21st, 2009, 09:59 AM
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oinchats wrote:
<i>We mentioned above that banks mark up the cost of euros over the wholesale rate quoted on websites like xe.com—which are the rates used when money is transferred electronically between banks. <u>Consumers pay a markup of about 7 percent on these rates when they withdraw money through an ATM.</u></i>
This is NOT TRUE at all. Many banks only charge a 1% forex fee above the interbank rate when their customer uses a debit/ATM card to withdraw money from ATMs in Europe.
<i>We mentioned above that banks mark up the cost of euros over the wholesale rate quoted on websites like xe.com—which are the rates used when money is transferred electronically between banks. <u>Consumers pay a markup of about 7 percent on these rates when they withdraw money through an ATM.</u></i>
This is NOT TRUE at all. Many banks only charge a 1% forex fee above the interbank rate when their customer uses a debit/ATM card to withdraw money from ATMs in Europe.
