P2P international currency exchanges

Discussion in 'General Discussion | Travel' started by Gargoyle, May 31, 2015.  |  Print Topic

  1. Gargoyle
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    Anyone have experience with or opinions on the various P2P services for international currency transfer? TransferWise, CurrencyFair, Azimo, Midpoint or others? Fees and exchange rates are way lower than any of the traditional methods (bank transfer, xe.com, international wire, etc.)

    How is security, reliability, speed of transfer completion, etc?

    Alternately, thoughts on USFOREX? Their rates appear to be better than xe.com, but not as good as the P2P services.
     
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  2. About Again

    About Again Gold Member

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    i've used a few FX services over the past 15 years, currently i use a large bank, and pay a margin of 15 basis points (0.15%) on the Interbank rate, the rate the banks trade at, and in addition, i get hit with a flat USD10 per trade by my processing bank (my bank offshore), then that bank's clearing bank here in the US charge USD25, then my bank here, where the final beneficiary account sits, and they charge me USD15, so flat fees btw the three banks amount to USD50 per transfer.

    major banks, security is no issue, very reliable, in the account overnight, usually within 18 hours, subject to cut off times.

    i believe transparent fee structure is one thing, re the USD 50 i'm paying, generally i'm transferring 50-100K per transfer, so that fee fee is minimal, where they make their money is on the margin they take when you do the trade, how many basis points, i've seen outrageous margins charged, amex offer a FX service too, called me for months, they cld never give me a margin, i cld never give them the business, i want a transparent margin on the interbank rate i can see in real time online, i have my own trading platform online, that the major banks offer to business owners, you don't have to deal with a FX currency trader to execute the trade, all automated online.

    The question i wld have for any of those operates wld be, what point margin on the interbank rate will you offer me on the trades?
     
    Last edited: May 31, 2015
  3. Gargoyle
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    Supposedly the P2P services are at the interbank rate, because they don't actually exchange currencies. For example, if I want to send from USD to EUR, and you want to send from EUR to USD, they pool the money, take my USD and send them to your recipient, take your EUR and send them to my recipient. If they are dealing with currencies were there is sufficient bi-directional trade they can balance it out. Fees are around 0.05 plus any fee to wire/ACH from my bank to their account.
     
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  4. About Again

    About Again Gold Member

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    interesting, cld be good, i can't speak to your queries, as i haven't had any experience with them, if they are genuinely giving you the interbank rate, and just taking .05 fee, cld be a good deal.
     
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