International Money Transfer - Paying Euro Invoices

[RegMolehusband]

I regularly pay a supplier's Euro invoices by means of an international money transfer with my bank LloydsTSB.

The exchange rate they use often seems a little startling in comparison to that quoted by Reuters for example. Do the banks make a profit on international transfers?

Does anybody know of a cheaper way to pay a Euro invoice from a Sterling account?

Cheers

"Reg"

[Marcellus]

Yes they do make money out of transfers in addition to the fee.

Don't forget reuters and places often only give a "mid price" rate so there will be a spread there anyway.

When I've seriously looked at the rate I'm being charged (my brother owns a "treasury" company) we reckon they're taking about 0.5% on the rate plus the £15 fee.

[Seany88]

I believe you can push them a bit on the rate, though it is hard work and your manager would need to be up to speed on who can authorise it etc.

[Incredible Sulk]

Seany88 said:

I believe you can push them a bit on the rate, though it is hard work and your manager would need to be up to speed on who can authorise it etc.

I make quite a few euro payments through RBS. One of the counter staff explained what they (RBS) do customer wise. For all smallish payments, say a couple of thousand euros, effectively the payments centre bundle up loads of payments until they get enough to do a sensible sized forex deal. You get the rate that that deal gets done at, and the bank makes its money via the fee that they charge. So you never know exactly what rate you will get, but it will be somewhere in the range that the GBP/EUR was that day.

For bigger amounts you can lock in a rate - the local branch has to phone up the payments centre, who organise an FX deal, and you get that rate. I did that twice when buying property abroad, but it is a pain in the arse to do.

I don't think I've ever been shafted on the rates I get when I don't know what rate they are going to do the deal at - looking back, I've always got the big figure. The pips I'm not too worried about.

[henna777]

RegMolehusband said:

I regularly pay a supplier's Euro invoices by means of an international money transfer with my bank LloydsTSB.

The exchange rate they use often seems a little startling in comparison to that quoted by Reuters for example. Do the banks make a profit on international transfers?

Does anybody know of a cheaper way to pay a Euro invoice from a Sterling account?

Cheers

"Reg"

I also bank with Lloyds and control exchange fluctuations by using their marketslink where you exchange any main currency at very competitive rates much closer to spot. Obviously you will need a euro account but it means you escape the vageries of not actually knowing the exchange on the IMT as you are paying in euros. I also bank with HSBC and their rates are a country mile off spot so all dealings via Lloyds. Hope this helps.

[RegMolehusband]

Very helpful comments. Thanks all

[samrr]

I reccomended Anello FX the other day.

We used to use Barclays then Amex payments when paying $ invoices. We switched to a FX trading comapany and started getting quotes from all three.

The trading companies have always worked out saving us every time.

[ClassicMercs]

Loads of FX dealers out there want your business.

We have Lloyds, as well as the LloydsLink facility. The rate is only part of the deal - its the charges on top.

Luckily only use Lloyds now to get Euro's out of our account (international charity must pay into an account in our name) and to the FX dealer in return for some good old £'s.

[Windsorphil]

We have accounts in dollar, euro and sterling - but I use HiFX and Worldwide currencies when I need to make exchanges, always getting both to quote - you can instruct them to forward the appropriate sum to your supplier, too. All very quick and competitive.

For small amounts (less than about 1500 euro then the bank is pretty competitive when all fees are taken into account).