Cheapest Way to Pay a US Company 5K

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surfisup1000

5288 posts

Uber Geek

#948178 9-Dec-2013 15:59

1080p: What are the fees for just walking into a Western Union and handing them the cash? I thought it would be ~$25 or so, wouldn't it?

There are several components to the costs though -- the transaction 'fee', and the fx margin.Maybe WU offers horrible fx rates!!

Personally, I've found credit cards to be a reasonable method to get an OK fx rate for purchases.

But, if when CC is not possible, I have a fx account with ASB -- i receive the funds in the same currency as the foreign exchange and call the bank dealing room for the best deal to convert into NZD. The banks advertised rates are always much worse and I always get a much better deal by calling the dealing room.

For sending funds overseas, I don't see why you couldn't call the dealing room direct anyway.

wellygary

8335 posts

Uber Geek

#948213 9-Dec-2013 16:45

networkn: Interested to know where I might get an idea if the NZ/USD will get to 84-85c by the end of December, how does one get a feel for the likelihood of such a thing?

Buy a Dartbboard and some darts and rent a monkey.

but in all seriousness FX rates are pretty much a crapshot and what makes things go up and down are pretty unpredictable,

nathan

5695 posts

Uber Geek
Inactive user

#948220 9-Dec-2013 16:58

networkn: Interested to know where I might get an idea if the NZ/USD will get to 84-85c by the end of December, how does one get a feel for the likelihood of such a thing?

I doubt that will happen in the next 3 weeks, by end of December

I'd almost bet on it

Next year I'm banking on a lower NZD/USD FX rate

mdf

3518 posts

Uber Geek

Trusted

#948242 9-Dec-2013 17:58

All the major banks and the more reputable FX dealers will open a foreign currency account (FCA). This is essentially a New Zealand account denominated in an overseas currency. This means you can make foreign transfers without incurring the exchange fees (though obviously you may still incur those when you deposit money in and out).

If you are making frequent foreign currency payments, the banks and FX dealers offer a range of more sophisticated products (forwards, swaps and options, primarily) that let you lock in an exchange rate now, lessening the risk of being hit by FX fluctuations later. A forward is basically an agreement that you will exchange $X NZD for $Y USD at Z rate. If the exchange rate moves against you in the meantime, you won't pay any more (on the flip side, if it moves in your favour, you won't pay any less either). An option is kind of like insurance that the rate won't move beyond a certain amount, though you will pay for the privilege. Swaps are really complex. One of these might be right for you. If it's a reputable NZ dealer, they will give you something called a "Risk Disclosure Statement" or similar, outlining the pros and cons of the various products.

If you are asking for advice (e.g. will the rate go up or down), this is financial advice and they will be obliged to give you more disclosure statements. In all likelihood, they are more likely to say "I can't provide financial advice to you" though.

It's really hard to open an account with a US bank. There's lot's of regulation about money laundering and funding terrorism that more or less makes it impossible.

zcars12

6 posts

Wannabe Geek

#948251 9-Dec-2013 18:18

Mine some Bit Coins. No transaction or any other fees.

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