Paying for € Purchases

[petem]

I also recommend transferwise. If you follow this link then you get your first transfer "free":

Transferwise

Pete

Thanks but the problem is that to get the cashback the amount being transferred has to be the same as the previous amount. In my case they were different amounts.

Pete

 

[petem]

CurrencyFair is even better than Transferwise, you can get a better rate and pay a supplier's bank account direct from your account there for a 3€ charge. You can even better the inter bank rate by asking for a better rate and hopefully someone exchanging the other way will take it.

Thanks, will try CurrenyFair and Transferwise and see who's offering the best rates the next time.

 

[petem]

@mlines, yep but at what spread?

@Pete, fwiw I would caution credit risk of fx brokers. I'm not saying it's bad but you should check or at least think. The money is generally in client accounts but as you know that requires them to put it there on the euros end of the deal. On the sterling end of the deal you remit to their sterling client account but you need to wade thru t and c to find what permissions they have to remove it. Clearly it must get removed else how is the sterling paid for.

I prefer to keep a euro account in London and France at banks, both online. I buy euros in London at thin spreads and hold them in London, then make a bulk transfers to France account after which I'm in mapism's sepa area system online.

Lots of ways to skin this cat though

Thanks JFM. If I want to purchase € in advance of buying a boat (to hedge) can I do that (safely) without having a € bank account?

 

[longjohnsilver]

I looked into this a while ago and concluded that the safest way was to open a Euro bank account (Nationwide in IoM in my case) and have the exchanged funds paid directly to it. There have been too many fx brokers who have gone under, a recent one down our way, Crown currency, losing many millions.

Why take the risk?

 

[EugeneR]

I prefer XE.com's xetrade.com to get the smallest spread and pay directly into the recipient's bank account. Large multinational, part of Western Union i.e. probably lower credit risk.

 

[EugeneR]

For hedging, there is no need to buy and hold the currency itself... buy a contract for the amount of Euro you need e.g. www.cmcmarkets.co.uk and take the difference when you go to buy the actual Euro later. Your profit will cover what you need to pay more later, or vice versa.

 

[nigelmercier]

I use a Halifax Clarity Card.