Need to send the equivalent of USD $5,000 to England

anna10 on 15/03/2014 - 08:49

What are the considerations with sending USD 5,000 to the UK, eg I could:

1) Have someone in Aust with a US bank account, send USD5K to the UK and then I reimburse them here in AUD - not sure of all those conversions? They are fine w' that, but not sure that it's good for me

2) me send the equivalent of USD5K straight from my account converting from AUD to GBP - what's cheapest reliable way to send money

3) any other options

There are conversion considerations and fluctuations and cost of moving currency etc and probably other things I have yet to think of. Timing is not so important though.

Any thoughts / q's please?

Financial

Comments

  • Unbranded on 15/03/2014 - 10:03

    You can send money through paypal. All you need is the email address of the person you are sending it to who also needs to have a paypal account. Paypal can do the currency conversions for you if you choose. There may be a paypal fee involved depending on the type of transaction it is.

    • Lichen6420 on 15/03/2014 - 11:09

      +1 Paypal is the simplest way these days. There is no fee to send money (private transfer not payment for goods) but they do make money on the conversion (like any bank does).

      • sparkles on 15/03/2014 - 11:15
        +6

        The exchange rate you will get via PayPal will be woeful. I wouldn't put something like this in the hands of PayPal, plus they quite enjoy putting holds on peoples money.

        You should be able to transfer this via online banking. Just manually calculate the equivalent USD into AUD, then transfer that to the UK account who will receive GBP. My CBA account lets you do it online, but only up to $2000 daily online. Tested it and the current exchange rate on there for GBP1000 is 1 AUD = 0.5121 GBP* with a $22 fee.

      • Geewhizz on 15/03/2014 - 13:40

        There is no fee to send money

        That depends on your funding source. From memory, direct from Paypal balance or bank account + no fee, fromm CC there is one.

  • anna10 on 15/03/2014 - 11:13

    Ok thanks, I'll check the conversion fee on paypal when the time comes. Which raises the q , how does a person get that cash out of paypal once they receive it? Is there another fee to transfer to their bank account? I just use paypal via Amex to pay for things.

    • Lichen6420 on 15/03/2014 - 11:31

      It is free to withdraw Paypal funds to a linked bank account.

      If receiving party does not have Paypal setup with a linked bank account and verified account etc it's probably not worth the hassle for a once off. But if they already have it setup it is very very easy.

      • [Deactivated] on 15/03/2014 - 22:33

        Last time I made a large payment on PayPal from my cc to PayPal to a US business it cost me around $200 more than the following transaction which I made directly through cc to business cutting out PayPal. I was spending a little over $3k in each transaction. First time I was weary of the business I was dealing with, second time I realized the only people trying to rip me off were PayPal.

  • nowlan on 15/03/2014 - 11:34
    +3

    Currencyfair?

    • alwayslooking on 17/03/2014 - 12:33

      I've used Currency Fair before. Best way imo.

  • zultan on 15/03/2014 - 11:43
    +2

    Don't use Paypal their conversion rates and fees are astronomic. Look at Xe.com or OZforex both are fee free and will offer a better rate than high street banks.

  • jdf on 15/03/2014 - 12:14

    Try Western Union, you can do it online from a bank account or credit/debit card & the person can pick it up from a western union outlet in the UK, they also have transfer to bank accounts for some country's (not sure if UK is in that list)

    • sparkles on 15/03/2014 - 13:23
      +1

      They charge an arm and a leg. Used it once as emergency when my wallet got snatched overseas and was left penniless. Use only as a last resort.

      • jdf on 15/03/2014 - 16:37

        That's true, but I found them cheaper than a bank transfer & paypal. If there is another option would love to know.

        • ferguscan on 15/03/2014 - 23:22
          +2

          ozforex

        • MementoMori on 17/03/2014 - 10:35
          +1

          Yes - use OzForex. Great service and price.

  • anna10 on 15/03/2014 - 12:31

    I've read many warnings against Western Union.

  • sneaker-head on 15/03/2014 - 15:57
    +1

    Bitcoin could be a legitimate option for you here. As long as you and your recipient are somewhat technically inclined.

  • anna10 on 15/03/2014 - 16:26

    I'm being too cautious to try Bitcoin :(

    • CheapCoffee on 15/03/2014 - 21:10
      +4

      Not to mention the fluctuation in the price. I wouldn't recommend cryptocurrency as a mean to transfer money at the moment.

  • ferguscan on 15/03/2014 - 23:21
    +2

    I use ozforex to transfer money overseas all the time.

    They are the forex provider for ING Direct.

    They offer good rates and are easy to use.

  • affable on 16/03/2014 - 07:48

    I know its none of our business why you need to pay someone in UK in USD but are you certain its not some kind of scam? How well do you know the recipient, is it for business or personal reasons? A UK citizen would normally be wanting pounds, to me its suspicious that the price be negotiated in USD?

    • anna10 on 16/03/2014 - 08:21

      Thanks for your concern, it is an OK family matter.

  • SolarEvents on 16/03/2014 - 13:17

    Use Exchange for free
    Www.exchange4free.com.au

    I do it all the time, no fees only thing you pay is 2 cents on the spread between Aud/gbp

    I last month send 6600 pounds to Oz , cost me $120, it works both ways, normally we send money back to the UK from here.
    Good service and u have the money in 3-4 days

  • snvl on 16/03/2014 - 17:37

    If you are going to do it more than once and it is for a family member: open a city plus account, send the card and they can withdraw from it. You cannot withdraw 5000 the same day tho.

  • sl17 on 16/03/2014 - 20:24
    +3

    OzForex!

  • Azn310 on 16/03/2014 - 23:28

    Try Hai ha money transfer, they have branches across Australia, i have used one in Bankstown and Cabramatta. They give you good exchange rates, much better than banks, and charge $25 fee for that amount i believe. Usually you give money here, they give the person in UK cash or deposit into bank right away.

    I have transferred about 20k total to and from Asia before in small instalments, and friends transferred money from Asia to Aus to buy houses here.

    Just another option for you, website http://haihamoneytransfer.com.au/moneytransfer/international

  • [Deactivated] on 17/03/2014 - 00:08

    Firstly forget your first option - hardest and most expensive.

    For what it's worth, some info from CHOICE on the topic here

    http://www.choice.com.au/reviews-and-tests/money/banking/tra…

    Short of it is that Currencyfair and Ozforex are worth a look in, both are reputable.

    Definitely don't use internet banking or your bank - you'll get hit with a fee going out, a poor exchange rate, and if you're unlucky a fee at the other end depending on how your bank sends the payment.

    You probably already know, but you'll likely need the payee name and address, as well as their bank account (ideally an IBAN) and their bank's SWIFT code.

  • porsche26c on 17/03/2014 - 06:46

    just had a light bulb idea, put the money on a international travel debit card. send it via registered post. they can withdraw the cash as needed from multiple atms that accept certain cards.

    • Gina Rinehart on 17/03/2014 - 16:31

      Could do it with a Citibank Visa Debit - they give the visa/mastercard exchange rate which is as good as you'll get anywhere, however I'm not sure with the legal aspects of sending a debit card internationally. You'd have to know & trust the person you're sending it to, make sure it's registered post, etc.

      They could withdraw it from an ATM for no fee, destroy the card and you could close the bank account when it's empty.

      All hypothetical, of course, but it could possibly be the cheapest way to do it, sadly.

  • Stallion on 17/03/2014 - 07:56

    I use my Citibank Plus account for all my international TT's as well as overseas travel usage.

    You can apply for it online for free and there is no account keeping fee. https://www.citibank.com.au/AUGCB/apfa/augcb/ocmff/LandingPa…

    It is free to transfer to any bank account international or local and they provide a very good exchange rate too.

    Check here for their rates. https://www.citibank.com.au/global_docs/mobile/mobilefx.htm

    I know other banks i.e ANZ which charge you a $30 transfer fee as well as give you a bad exchange rate. Sometimes they even take a % of the whole amount transferred.

    Hope this helps. Once you've done this. You can do this anytime again hassle free because you've saved the transfer details via their internet banking.

    Their site is secure and you can use either your iPhone or android to register for OTP for transactions to go through or they even provide you with a device if you don't have either of those phone types. Another security alternative is they sms you the otp also.

  • anna10 on 17/03/2014 - 08:20

    There's some very interesting info coming out and I'm making notes and looking at links. Thanks. Any more light bulbs, let us know ;)

  • anna10 on 18/03/2014 - 20:09

    Thanks guys, forex it will be.

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