![]() ![]() There will be a monthly fee and a minimum to open the account if you do this. One company you could use for this is Interactivebrokers. In other words brokers don’t really want you to set up an account just to exchange some money! They are looking for you to trade, and transact hundreds of times so that they make something on brokerage fees. I would not recommend it unless you have over $500k to transfer. This is something I have personally done, but it’s a little tricky to set it up. There is also an option for using a foreign exchange broker to directly exchange money and pay the same rates that banks pay. Can you get 0% fees (in other words can you get the inter-bank rate)? ![]() You can get a bank account with multiple currencies which will solve this issue, for example by setting up an account with HSBC in Hong Kong, Singapore, Australia or the UK. Usually this means you need a bank account in the two different currencies. The way that these services work is that you transfer (via wire transfer usually or ACH in the US) to their bank account and then they will wire or direct transfer to you in the exchanged currency. ![]() 4% on higher volume transactions. They have awesome customer service because you can get a direct line to the founder 24/7. Curexe – offers a transparent 1% cost on currency exchanges and goes down to.xe.com – fee varies depending on the currency.(Note: 10 free transfers with CurrencyFair if you use the link) CurrencyFair – charges usually 0.5% one way, they also have a marketplace where you can trade with other people directly.OFX – charges usually 0.5% one way or 1% round trip.Wise will definitely still need the sender to have bank account and will need the sender to verify their identity with a copy of a passport or similar documentation. The other alternatives on this list will need you to have a bank account in your name in both countries. They seem to be able to facilitate a transfer even if you do not have a bank account in both countries (but I have not confirmed this). Wise, formerly TransferWise – charges 0.5% one way or 1% round trip.If you’re transferring $5k to $100k, you can avoid the fees and pay only around 0.5% by using any one of these currency exchange companies: There are several options for avoiding these fees, but it really depends on how much money you are exchanging and which currencies you are exchanging. But still, even the Wells Fargo currency exchange rates of 2% round-trip (1% one-way) is a lot of money to pay when there are other lower cost options. You will notice that the fees in the US are a bit more reasonable than the UK, Australia and Canada. Although they are not a bank they are a popular option for international transfers. It’s not the rates you receive when exchanging cash over the counter in the bank (although rates for both situations are usually very high). This is probably what would happen if you sold a house in one country and bought another house in another country. The table above represents the rates you receive if you were to wire money into your bank account, for example in another currency. Here are some fees from wire transfer exchange with popular banks in the US, Australia, the UK and Canada Country You don’t see the fee because you just see how much foreign currency you received when exchanging. The reason why they charge so much is because this is a hidden fee. Usually they do not disclose the fee, they just disclose the rate that you get to exchange. The banks make a margin on top of this, and give you their exchange rate with the fee included. This is the rate the banks pay when they are trading with each other (usually a few million dollars per trade). The rate the banks pay when exchanging money is called the “inter-bank” rate. Check how much they charge above the “inter-bank” rate This means that on your $200,000 house you just paid $7,000 to the bank to transfer the money for you. The average fees are around 7% round-trip or 3.5% one way. ![]() Of course you’re not going do a round trip exchange, but it gives you the idea of how much the banks are making. That’s on a round-trip exchange, meaning if you changed the money then changed it back you would lose 13%. You might be shocked to discover that the fees are as high as 13%. How much do you pay the bank when you wire the money? $200,000 house, transferring from London to New York, or from Sydney to San Francisco. So let’s say you are moving countries and you sold your house in one country and bought in another. Banks charge as much as 13% fees on a round trip exchange You don’t see currency exchange fees easily. The fees they charge you when you exchange money are hidden. Every time you do, the banks try and take from you as much as they can get away with. If you’re like me who travel often, or perhaps you have lived in different areas around the world, you constantly change money. ![]()
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