Any Advice on this one?

I am about to move a large amount of money from the UK to the USA, the proceeds of the sale of my house in Wales.

Normally when we send money back and forth in the past we have just moved it from a conventional bank in either country to the other end inside the banking system, however, as you probably all know they give a crap exchange rate and  charge transfer fees, wiping the manager’s butt fees and anything else they can think of at the time fees.  As we were only sending relatively small amounts we always just wore it, cursed, grimaced, moaned and bitched and paid!

However, this is a good six figure sum and we note these FX companies do not appear to charge half as much fees and give a better rate to boot.  As many of you are ex pats does anyone have any comments or recommendations to make on this subject?  Any pitfalls for the unwary?

Comments would be appreciated.

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Author: christinaosborne

Landed on one side safely.

15 thoughts on “Any Advice on this one?”

  1. This is a useful site:

    http://www.fxcompared.com/

    Usually the best FX brokers are registered with the FSA and HMRC and have segregated client funds, a bit like solicitors accounts. A friend buys property abroad, and just shops around the brokers for the best deal.

    I don’t know of any snags, except there was one a couple of years collapsed and there is no compensation scheme!

  2. A, thanks very much! Most useful, have set spousal unit onto researching your recommendation. Mind you if there is no compensation for going broke maybe one had better just pay the Nat West!! Ouch.

  3. Tina, it’s a bit like that, but the FSA only guarantee deposits up to £85,000 anyway, and it’s a real pain trying to spread large amounts of money which you may need quickly to buy a property for example, because you have to open about six deposit accounts. The interest is pathetic anyway for any short term deposits.

  4. Essentially, you are just buying currency from a broker so no guarantees, but choose one with the above in mind, and you will get a much better rate of exchange, and lower fees.

  6. Jolly good advice A, these things are not done too often in a lifetime for ordinary people.
    What we have always run up against is the anti laundering regulations. Every time you move more than $10,000 every bell in the system goes off! When we were buying the flat in Brum it caused God knows what problems. I nearly got arrested in a bank in Brum. Thank heavens the manager knew me and refused to implement all the nonsense, I was in there for HOURS! Incredibly tedious and hideously embarrassing. Lets face it, the average drug baron, or baroness in this case, hardly buggers about with a provincial branch of Nat West do they? (More like HSBC if stories are to be believed through Mexico City!) They really do go out of their way to inconvenience ordinary citizens.

  8. I know exactly what you mean, Tina.

    I used to attend meetings with my mother when she felt she couldn’t cope with all this money laundering nonsense every time she wanted to re-invest her money. She had to prove who she was each time, and had become thoroughly fed up with it all. She didn’t have a passport, she hadn’t travelled abroad for ten years and didn’t possess a driving licence or, and they were becoming desperate here, she didn’t have a shot-gun licence.

    She was in fact, a non-person! Most money launderers have already sussed out the system, and it merely inconveniences the rest of us!

  9. Our branch of HSBC in France went into a terrible panic when we tried to move cash from our current account abroad. ” Where has this money come from?” they squeaked. “It has only just arrived in your account.” I had to explain that it had “just arrived” from our savings account in their very own branch where it had been sitting quietly for some time. I’m not sure any self-respecting money launderer would want to use them.

  10. You’re absolutely right, Araminta. The law abiding get the hassle and the criminals sail through. I’m very tempted to sprinkle talcum powder over any banknotes I pay in to a bank.

  11. Just another thought, Tina, if you are paying UK taxes you may be liable for Capital Gains, but no doubt you have thought about this one.

  12. Fortunately not. I had the good sense to keep every bill ever incurred on the property for over a decade and as I spent a lot converting it they cannot rob me! Plus I didn’t rent it out for years, only the last couple in fact.

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