walkinaround

Does anyone have experience using a foreign currency exchange service (FX) instead of a bank to bank transfer for the transfer of funds from one country/currency to another?

The whole process looks rather complicated but the fx services offer much better rates (or so it seems) than a bank to bank transfer. Can anyone recommend an honest one?

To clarify, please do not tell me to use a cash machine/ATM because I'm talking about transferring money from a bank account in country A to another in country B.

bob_brown

I am a little rusty on this because the game has changed since I was involved in international transfer of funds.

I suggest you find out first if your present bank has a correspondent bank in the "other" country. If so, you may be able to get some advice from your bank here.

For example Scotia Bank in Canada is a correspondent with the Bank of American.

If a correspondency exists, you might be able to get a start there toward a solution.

But you are right, get the exchange rate before you move. If you are being charged more than 1%, then do something else.

StCirq

I've been using Ruesch International for a couple of decades to wire money to my bank account in France and to send drafts in European currencies.It's not complicated at all. You get an account with them, get a great rate on drafts and transfers,and just call them when you need to send money.
Is that what sort of service you're looking for? If you're just talking about the foreign currency exchange booth type of service, no I never use them - you lose a small bundle compared to the rates you get with an ATM card.

Robert2533

walkingaround,
I don't know anything about FX, but we are very familiar with a currency exchange service/trading company out of Canada called XE.com. Once you set up an account, you can transfer funds, make payments and purchase cash in any amount. We've used them to transfer hotel payments and other items that amounted to several thousand of euros in value and have never had a problem. We fell confident based on the fact that their North American accounts are handled through the Bank of America in San Francisco, which is also our main bank.

The exchange rates are calculated hourly and locked in when you execute an order. They are also the best rates you can get and there is no additional fees involved. They make their money by dealing with millions a day.

walkinaround

i will look into XE and Ruesch. They sound like the kind of service that i need. The complexity i was talking about is the apparent need to open an account with the trader, then fund it from your bank when you wish to execute the trade.

St Cirq...i'm not talking about the kind of exchange that is executed at a booth in the airport. For that kind of thing I use a cash machine and aren't too bothered by that exact exchange rate given. but for this, a small difference in the rate will have a large impact. basically, the bank is giving 1.86xx on £/$ while the interbank rate is 1.91xx.

Maybe my question is better posed as, "how do i get the closest to the interbank rate (the published rate in the financial pages)?" I do not mind paying a fixed fee if necessary as this will easily be offset by a better rate, nor do i mind a little hassle but i don't want to deal with any shady companies.

It's about time to move from £ to $...

Anyone experienced with the tax implications of such a transfer?

Intrepid1

To be very blunt about this, now that you have "moved" this conversation from a "simpler" topic of moving funds between banks to a much more complex one of whether or not to transfer assets(?) from one currency to another, what you need, if this is more than office boredom and musings, is a qualified tax accountant.

walkinaround

i did not ask whether or not to move assets from one currency to another. i stated that i WAS moving currency from £ to $ and was looking for advice from someone who may have done this and how to get the absolute best rate.

I know that there are many people here who have a life of travel/international living and therefore need to handle these sort of things.

i retract the tax part of the question as this is not appropriate for this forum. anyway, i was looking less for specific tax advice and more if people bother to report this sort of thing. the tax part is retracted however, so don't answer.

i have no idea what you are implying by "bored office musing". this question is hardly the kind asked to liven up a boring afternoon. for that i would probably ask about something a bit more sexy than currency exchange!

ira

Hi w,

>..."how do i get the closest to the interbank rate ...<

Transfer millions of GBP at once.

ira

Just for the heck of it; your question about taxes is intriguing.

If one buys GBP at $1.21 and puts them into a personal bank account without intention of engaging in arbitrage, and then sells them at $1.91, does one incur a capital gains tax obligation in the US?

Very interesting.

clevelandbrown

I haven't dealt with a correspondent bank, so I don't know the costs involved there. I have done wire transfers, and in addition to the exchange rate (mine was very good), you are subject to fees (the fee was something like $37US to transfer 350 euro, so I won't be doing that again).

I've visited the xe.com site regularly for a few years, and I think I will use them the next time I have to transfer funds. They don't do electronic transfers for the delivery, but give the option of a wire transfer or a draft; wire transfers they say cost less than at a bank, drafts are free.

I'm sure there are other companies offering similar services, so the question is how can one ascertain their reliability.

Lovejoy

You might want to check out this site.Look for "WorldCurrency Deposit Accounts" on the page.They state it is easy to switch between currencies.Not sure of fees involved though.
Link:
http://www.everbank.com/main.asp?affid=eb