Money Exchange & Currency Transfer

Read this if you are moving to Spain or to any country outside the UK

If you are considering buying a property, car or even a boat in Spain or elsewhere overseas, you need to arrange a method of payment and this usually means:-

A. Exchanging your Sterling into Euros
B. Transferring it over to a Spanish Bank Account

The exchange and transfer of medium to large sums of money abroad is, for most of us, an unusual event and knowing how to obtain the highest exchange rate and how to transfer it at the lowest cost is very important

There are three factors that affect the amount of actual cash you end up with in Spain after transferring £s or $s into Euros

1. The exchange rate you receive from the bank or money exchange company
2. The transfer charge that is made by the bank or exchange company to send it to Spain.
3. The charge made by the Spanish bank for receiving your money and opening an account.

The average person, quite naturally, thinks that the best way to arrange this transfer is via his own bank but, in my opinion, this is rarely to your best advantage.

Whether the amount is to cover payment of a deposit, staged payments or completion of a property purchase, the first priority should be to ensure that you obtain the highest rate of exchange available. Banks rarely offer this.

How do you get more Euros for your Pounds?

The Answer: Use a Money Transfer Company

Factor 1. The exchange rate

The best Money Transfer Companies are backed by one or other of the major financial institutions. They deal solely in the buying and selling of foreign currencies and because they buy such huge multi million sums, they obtain their Euros at an exceptionally advantageous rate. Their profit is made by selling the Euros or Dollars at a rate above the price at which they purchased them and reselling them to you, their clients, at an exchange rate considerably better than could be acquired from a normal high street bank

Factor 2. Money Transfer Charges

Whether you choose an English Bank or Transfer Company, a charge is usually made for handling the transfer of the money into your Spanish account.

I recently carried out a survey and the results were quite startling. Bank charges for transferring your money into your chosen Spanish bank account varied dramatically. I was given figures from £20 up to £68 per transaction, depending on how quickly the money needs to be transferred. The banks also advised me that transfer can take up to six days and also that quick delivery could not be guaranteed, even at higher rates.

The Transfer Companies confirmed to me that they could offer fast transfer at a maximum cost of £15 and some make no charge at all.

By discussing this transaction with both your Bank and the Transfer Companies you will be able to negotiate the very best rate, just as you get varying quotes in business for other services.

When you have chosen your Transfer Company and are ready to go ahead with your property purchase, you will be far better prepared by having established a personal rapport with a named contact within a chosen money exchange organisation.

Test it for yourself: complete the following form without commitment. Whilst at the same time ask your bank what is the most favourable terms they can offer and what will be their charges!

To ensure objectivity, this form will actuate a response request from two or more of the four most respected UK Currency Transfer Companies.

Match their exchange rate against that offered by your bank.

Name
Telephone
Email
Please select the kind of assistance you require: I would like a currency transfer specialist to contact me to discuss money exchange issues. Alternatively, please provide a quotation and advise what commission and telegraphic transfer fees you charge.
Quote for transfer of	into Euros (€)

ERROR: Please check all highlit fields have been completed.

Press to receive a quotation from a currency transfer specialist to be contacted by a currency transfer specialist to answer any questions.

One last piece of advice

Remember Factor 3. Your Bank or Transfer Company will ask to which foreign (Spanish) bank account do you wish your money to be transferred?

How do you select your Spanish bank? If you already have an account in Spain, remember to ask them what charge they will make for accepting the transfer. It can be 0 % but of those I checked this month, it varied from 0.3 to 2.5%. That is, from 150 Euros to 1,250 Euros: again it was per transaction. Don't be caught!

Read full details of the excellent agreement I have just arranged with Sr Josep Banuls Vidal, Director of the Bank La Caixa, Espana.

As always I am pleased to receive comment on the quality and benefit derived from your use of information provided on this website. Please contact me using my feedback form.