One way to get excellent Forex rates: OANDA

Discussion in 'Other Credit Card Programs' started by jbcarioca, Apr 23, 2011.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    There are constant discussions about how to get the best rates for foreign exchange. I am generally reluctant to make a specific recommendation, but here is a really good solution if you regularly need FX.

    OANDA.com is probably best known for the forex quotes, historical and current that they offer free on their site. Most people who use it do it to justify forex pricing for expense reports, tax returns etc.

    They also have a forex trading service, and a forex transfer service. I use them for the forex transfers only. The downside is that you need to have accounts available for a source and destination for the money on both sides. The upside is that the rates you actually receive, after all fees, are usually well within the band of actual interbank trading rates. Typically I find it takes two days or so to have my account credited with money in and another 2-3 days for credit out, so it is not instant. That seems to be because they use at least correspondents on each side, one of which has always been Royal Bank of Scotland when I use them.

    For example my most recent transfer was sending Euros to the US, so buying US$ with Euros. The interbank rate on the 21st April, when I did this, ranged from 1.43293 to 1.45482, and I received net 1.4530. This my Euro 10,000 resulted in $14,530 deposited in my US account. I find those rates almost unbelievable, but time after time that is what happens; I receive net rates within the interbank trading range. That happens consistently in no other way I know; even no-fee credit card are never near that.

    I am certain their are others like to, possibly as good, but I do not know them myself.

    Their site is:
    http://www.oanda.com/currency/converter/

    there are links there to all the services they offer. I have no connection with these people other than as a happy customer so YMMV.
     
  2. below sea level
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    below sea level Silver Member

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    I'm going to try this one. $25 is better than what I currently get charged for my international transfers.
     
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  3. jbcarioca
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    jbcarioca Gold Member

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    I hope your experience duplicates mine. Please tell us about it. Remember, the net rate is the big deal, not just the transfer fee, even though that is quite reasonable.
     
  4. below sea level
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    below sea level Silver Member

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    I'm following up to say that I've tried this now, and am more than happy.

    The fee is actually higher than what it normally costs me because you first need to wire transfer into the Oanda account, meaning the actual cost is $25 plus whatever your bank charges for the service. However, their exchange rate is so much better that I recovered the fees plus several hundred dollars on a $15k transfer.

    I sent them an email about the ability to direct transfer into the account to avoid the wire transfer fees, and they responded saying it was in the plan for the future.

    In short, give them a try. I'll be using them again.
     
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  5. jbcarioca
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    jbcarioca Gold Member

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    Depending on your bank it is often possible to send money to them without extra fees. I use five banks and have a fee with only one of them. That one, in France, only charges a tiny fee because the OANDA account is within the Euro zone.
     
  6. below sea level
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    below sea level Silver Member

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    Yeah, it's entirely dependent on your personal bank. It's impossible with my current bank, but I don't pay any other fees to them so it's not enough to make me want to leave.
     
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  7. I have no idea but I am going try this one. I want to know, what I get from here. I feel good I get a small information about forex rate from OANDA. Thank you so much.

    Regards

    Forex Rates
     
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