I run an online business and frequently need to transfer money form US dollars to Euros, or Euros to pounds sterling. The truth is, banks charge a lot for this. Not only do they charge a transaction fee, but they’ll also use currency exchange margins that shave off another 2 – 3% of your money. This can all add up. e.g. A simple currency transfer of 2000 pounds sterling is likely to cost at least 100 pounds.
That’s a bank charge of 5% for simply asking for my money in a different currency!
But, there is a better way.
I have started using CurrencyFair and these currency exchanges are ending up costing a mere 0.5% or less. I recorded a video to show you how it all works, and give you real examples so you can see the money savings.
There is one downside. You must be resident in the EU/EEA countries, Australia, New Zealand or Canada to sign up for a CurrencyFair account. Another downside as far as I am concerned is that you cannot transfer money from Paypal into the CurrencyFair account, but there are ways around that (do you realize how much Paypal charge for currency conversion? ).
If this all seems interesting and you want to check them out, sign up for a free account using the link below, and get one free transfer.
Money Exchanged & Transferred Later that Day
Since posting the article, I have had two emails asking about any hidden costs when the money is transferred out to my bank in the UK. Therefore I carried out the exchange to pounds sterling and then the transfer just to show you there aren't any. When I did the exchange, the exchange rate offered as immediately available was slightly higher than in the video. I actually had to make two separate conversions because there wasn't enough readily available sterling for the best rate offered, so had to take the next one down as well for the balance. Overall the average conversion rate I got was 0.7868
Here is the transfer out of CurrencyFair:
You can see that my €1000 got 786.82 GBP which then had the 2.50 fee taken out. That left me with 784.32 GBP.
I then went ahead with the transfer to my bank account in the UK. The date of the transfer was 21st April 2016, and the screenshot below shows my bank account in the UK receiving the money:
Note the full amount – 784.32 GBP credited to my account on 21st April, so it was the same day (though I didn't see it in my account until this morning (22nd). I assume it was there at the close of the banking day yesterday.
So there you have it. The overall process of moving money from Spain to the UK, including ultra cheap fees (it cost me a total of 5 GBP for this transaction compared to the interbank rate) took 3 days. 2 days to get the money from my Spain bank to CurrencyFair, and another day to get from CurrencyFair to the UK bank.
The only other fees I had on this transaction was my Spanish bank charging my €2.50 for the transfer to CurrencyFair. Your bank may also charge this.
See how much you can save with this handy CurrencyFair calculator:
Claim your free transfer here: CurrencyFair
I also recommend you check out the reviews and websites shown in the video to make up your own mind about this service.