Euro transfer abroad

[athew]

I have already transferred some Euros via the bank transfer system to a broker abroad. Although the rate on teletext was 1.6168 E to £1, I was charged 1.589E / £1. When I make my final transfer next month there could be a difference of £500+ if I don't get the published rate again. I suppose I won't be doing this very often but is there a smarter way to do this? After all, why publish a rate if my bank doesn't use it? Or does the rate depend on how much you are transferring?

Enough to even get me a new burgee frt'boat!

 

[stewart]

The rate you will have seen published will generally be a mid price but in reality there will be a rate that the bank buys at and one that it sells at, and it makes money through this difference, just like with shares. Between now and when you complete the transaction the exchange rate could move either way, either costing you more or allowing a saving. In theory you could fix the rate by changing the money now into Euros and holding in a Euro bank account, but not sure if it's worth it, depends on your attitude to risk.

 

[gjgm]

I am not sure quite what this teletext rate is, but it is probably the inter-bank price, where banks trade one currency against another at a specific moment between themselves. A normal traded amount would be between 5 and 10 million euros. Total turnover in foreign exchange markets on a daily basis is probably up in the thousands of billions.
Same as everything else, the price improves with volume. Its just you might need rather alot ....

 

[tcm]

Re: commercial v tourist rates

the normally published (good) rate is for commercial, the nasty rate is for tourists. Obviously, the more you buy, the better the rate.

To achieve the commercial rate, yiou need a foreign-based bank account. Make a transfer to that account, then draw it out of that accouint when you get there. I saved enough to pay for the trip (easily) doing this to transfer cash out there .

 

[athew]

Re: commercial v tourist rates

Thanks to all!

Keep smiling....