Who is the best to use for foreign exchange?

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cyberhub

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#142459 13-Mar-2014 17:02

I regularly send US funds and I kinda get the feeling that the bank is ripping me off.
Can anyone recommend a cheaper way?

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sonyxperiageek

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#1005082 13-Mar-2014 17:10

PayPal?

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wellygary

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#1005083 13-Mar-2014 17:12

It is probably a combination of the transfer charges and the exchange rate that are taking a bit out of the $$ ( although the strong NZ$ will not be helping)

Have you considered setting up a US dollar account with your bank at least then you will be able to choose the time and rate when you exchange into NZ dollars.

ech3lon

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#1005094 13-Mar-2014 17:48

Bitcoin comes to mind

surfisup1000

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#1005101 13-Mar-2014 18:02

cyberhub: I regularly send US funds and I kinda get the feeling that the bank is ripping me off.
Can anyone recommend a cheaper way?

First of all, give an example of where you suspect the bank ripped you off. Just the amounts and fees, and transfer date is OK.

I do transfers reasonably frequently (via ASB) and get around 40 basis points off the midrange of the current wholesale rate for transfers up to 20k.

A transfer closer to 100k will get you a better rate.

surfisup1000

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#1005103 13-Mar-2014 18:03

wellygary: It is probably a combination of the transfer charges and the exchange rate that are taking a bit out of the $$ ( although the strong NZ$ will not be helping)

Have you considered setting up a US dollar account with your bank at least then you will be able to choose the time and rate when you exchange into NZ dollars.

Bank margins are reasonably static regardless of the level of the nzd.

Batman

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#1005105 13-Mar-2014 18:19

They have a buy rate a sell rate.

What you read in the internet or papers is the average of the two.

Could that be why you feel cheated?

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kiwitrc

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#1005140 13-Mar-2014 19:16

Our company use Thomas Cook and get better rates than the banks offer, not sure if thats because we transfer a lot of money per year.

Someone in GZ had the clever idea (if its a friend, family member etc) of sending them an EFTPOS card and putting the money you want to transfer into that and have them draw it out at the other end as required. Of course thats not such a good plan for a business transfer.

nigelj

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#1005257 13-Mar-2014 22:38

kiwitrc: Our company use Thomas Cook and get better rates than the banks offer, not sure if thats because we transfer a lot of money per year.

Someone in GZ had the clever idea (if its a friend, family member etc) of sending them an EFTPOS card and putting the money you want to transfer into that and have them draw it out at the other end as required. Of course thats not such a good plan for a business transfer.

Keep in mind that a) You'd be most likely breaching any number of a bank's rules (including not personally holding the card), b) If you are suggesting that 'friend' takes the money out of an ATM, there is ~ $7/go charges (unless you use a Westpac account and a Bank of America ATM - then it's 'free'), c) Some banks when it realises it is an account likely to be in NZD will actually convert the transaction to NZD before debiting money from the NZ account. (ANZ in Australia do this, at the ATM/EFTPos machine, use their (sometimes inflated) rate, then put it over the transaction network as NZD, instead of AUD/whatever and let the holding bank to the Forex. d) Potential implications if 'Foreign Person X' is found with an EFTpos card in someone else's name and from a different country (a conclusion could be jumped to that it's 'funny money', or worse, identity theft).

Best to use a FOREX broker (of which there are many) and shop around.

Kyanar

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#1005428 14-Mar-2014 10:46

nigelj:
kiwitrc: Our company use Thomas Cook and get better rates than the banks offer, not sure if thats because we transfer a lot of money per year.

Someone in GZ had the clever idea (if its a friend, family member etc) of sending them an EFTPOS card and putting the money you want to transfer into that and have them draw it out at the other end as required. Of course thats not such a good plan for a business transfer.

Keep in mind that a) You'd be most likely breaching any number of a bank's rules (including not personally holding the card), b) If you are suggesting that 'friend' takes the money out of an ATM, there is ~ $7/go charges (unless you use a Westpac account and a Bank of America ATM - then it's 'free'), c) Some banks when it realises it is an account likely to be in NZD will actually convert the transaction to NZD before debiting money from the NZ account. (ANZ in Australia do this, at the ATM/EFTPos machine, use their (sometimes inflated) rate, then put it over the transaction network as NZD, instead of AUD/whatever and let the holding bank to the Forex. d) Potential implications if 'Foreign Person X' is found with an EFTpos card in someone else's name and from a different country (a conclusion could be jumped to that it's 'funny money', or worse, identity theft).

Best to use a FOREX broker (of which there are many) and shop around.

(This is the THIRD TIME I've typed this post out, and Geekzone's "quality" forum has eaten it. This is getting VERY ANNOYING and I apologise in advance if the tone of my post reflects this).

Expect that you're absolutely wrong. Westpac has a card called an Express Card which is actually a set of two cards. You get one card in NZ, and Westpac prints and directly sends the second card to the overseas person with that other person's name on it (they won't send it to anyone in NZ). It's a Visa, so can be used anywhere Visa is accepted or cash can be withdrawn via an ATM (free if it's ATM Global Alliance such as Bank of America, ScotiaBank or Barclay). You load money onto the card in NZ and the cash is immediately available on the other card overseas. You don't have to be a Westpac customer to sign up for it either.

dacraka

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#1005508 14-Mar-2014 12:48

NZForex is really good - fast at 24/7 support emails/calls - and you get a $30 Amazon gift card - they have better rates than the banks and no fees if you transfer over a certain amount : )
Definitely recommend them : )

Kyanar

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#1006553 16-Mar-2014 09:21

I looked at NZForex (they're only for amounts over $2,000 though so not my bag unfortunately) and Tranzfers (which is NZForex for smaller amounts) and found that when I checked, they actually had inferior rates to OrbitRemit (who I use). At this moment right now though, NZForex has a better rate than Orbit. Definitely all of the above are better than the bank rates though, which are absolutely hideous in comparison.

I'd say it's best to gather together a list of options and give each of them a quick look when you want to make a transfer to see which will give you the best rate at any given time.

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cyberhub

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#1009652 20-Mar-2014 10:27

dacraka: NZForex is really good - fast at 24/7 support emails/calls - and you get a $30 Amazon gift card - they have better rates than the banks and no fees if you transfer over a certain amount : )
Definitely recommend them : )

Thanks everyone, I have used NZForex. Their service was really good and I like their online system and I saved a few hundred dollars compared with my bank. So great result all round.

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