Transferring Currencies (AUD, CAD, USD, Euro etc.) - Your Best Options
Hey guys,
I know this topic comes up often as many of us are travelling and/or working/living abroad.
There are many options for getting currency from your home country to where you will be living, but I want to dive into the best options I have found over the years (i.e. best rates), and I invite you to add any others worth considering.
Until very recently, I have always found that XE Trade (of XE.com) had by far the most competitive rates. They skim a bit on the rates but it is as close to the true rate as I have been able to find; much better than banks etc. Also, they don’t charge any fees. You have to sign up for a trading account which is a minor process but worthwhile in the long run. Personally, this is what I have always used when I need to send money to Canada. I have found it easy to use and the rates are very competitive.
About a week ago, @zempheth, who is also currently living in Whistler, informed me of a service he started using called TransferWise. This service was built by the same guys who built Skype, and Richard Branson is an investor in the company. These guys pretty much give you the live market rate and then charge a very small fee on top. I have done the comparisons and TransferWise actually puts more money in your pocket at the end of the transfer compared to anyone else, including XE Trade, which surprised me.
Examples based on today’s rates based on $1000 AUD vs CAD:
The actual live and accurate rate is:
1,000.00 AUD = 985.250 CAD
Using XE Trade I would get:
1,000.00 AUD = 966.00 CAD (no fees, so I would receive $966.00 and lose about $19 on the rate)
Using TransferWise I would get:
1,000 AUD = 978.84 CAD (including their fee of $6.96 AUD which is ALL you’re losing on the transfer)
* Both the rate skimming with XE Trade and the fees charged with TransferWise scale the less or more you send, so the same as the example above applies regardless of how much you send. The benefit of TransferWise becomes more obvious the more you send.
Another benefit with TransferWise is you can pay with your credit card. All they charge is 0.6% on the transaction. I send for free via bank transfer but it is definitely good to have the credit card option.
As you can see, you come out on top using TransferWise. As far as I’m aware, this is the best way to send money from one currency to another. Please let me know if you know of any other options which are competitive or better than the two listed above.
Update: I just completed my first transfer with TransferWise and it was simple and hassle free. ?
Thanks Jeremy, spread the love!
I’ve done a few transactions with Transferwise and its unreal. It takes about 3-4days roughly and currently only supports the major currencies. A secondary benefit is the funds arrive to the bank account as a domestic transfer so when I sent money from AUD to CAD I didn’t get stung with an international wire transfer fee, which is $17.50 for TD Bank for example. The exchange rate is locked in once TW has received the funds (initial transaction time + roughly 24hrs).
The system was designed for remittance primarily but I find it works great for medium to long term travelling as all you need to do is set up a bank account at your destination and send money from your home account.
I have a referral link if anyone is interested in giving it a go. You can sign up and make a initial transfer up to 500pounds (~$800) without any fees, so literally just the exchange rate.
https://transferwise.com/u/aa628e
Cheers
I have a referral link if anyone is interested in giving it a go. You can sign up and make a initial transfer up to 500pounds (~$800) without any fees, so literally just the exchange rate.
Haha, you should have told me! ?
Someone else should get on this. Live rate with no fees. ?
Here’s another “free initial transfer” link if anyone wants: https://transferwise.com/ef/1b8037
Shit, I saw the link after I signed up :(
Here is my “friend code link” if anyone wants to use it.
https://transferwise.com/u/e6acfd
I’ll likely get a few when I arrive to Canada anyway.
Saw this article and thought of this thread!
http://www.pointhacks.com.au/foreign-currency-transferwise-guide/
I use my ANZ Visa debit card in Japan at all Seven & I holding convenience store. In total I loss $27.50 AUD in fees per $1000.00 AUD. Max withdrawal per day 50,000 yen. Easy and convenient. I travel to Japan every year and I always make sure I take a a heap of yen home for next trip. One time when the AUD was 103 yen while in Japan I took back home 300,000 yen in cash to use on my return trip. So I save 20 cent on the AUD the next trip. So keep your eye on the market if you are planing on revisiting that country again.
All good points Johno.
I think this thread is more marketed to those living in another country and transferring large sums etc.
I use my ANZ Visa debit card in Japan at all Seven & I holding convenience store. In total I loss $27.50 AUD in fees per $1000.00 AUD. Max withdrawal per day 50,000 yen. Easy and convenient. I travel to Japan every year and I always make sure I take a a heap of yen home for next trip. One time when the AUD was 103 yen while in Japan I took back home 300,000 yen in cash to use on my return trip. So I save 20 cent on the AUD the next trip. So keep your eye on the market if you are planing on revisiting that country again.
For travelling as a holiday, yes this is an acceptable and viable strategy. For us working holiday goers, this is a horrible idea.
First off you’re spending about $137.50 for $5000 transferred (Which for a lot of us is a reasonable amount.) I plan on spending about 4500 on a car alone.
Secondly you’re probably not checking what the banks exchange rate is. With Canada it’s currently $1 CAD to $1 AUD but Commonwealth Bank is only giving back $0.92 per $1 AUD you transfer. So add on your $137.50 to 8c per dollar. That’s $400 on top vs the 0.99c that these companies give.
Now we are out $500ish. Since we can use these services, it’s definitely worth the effort to sign up and send your funds overseas 
Damn,
I wish I had the time to pop back into the forums earlier to see this.
Xe.com changed their forex provider from custom house to HiFX, and note that because of the way that HiFX wires the money through, you’ll be up for a transfer fee.
I copped a $15 fee from RBC.
Going to try to use TransferWise to see how we go. =)
Damn,
I wish I had the time to pop back into the forums earlier to see this.
Xe.com changed their forex provider from custom house to HiFX, and note that because of the way that HiFX wires the money through, you’ll be up for a transfer fee.
I copped a $15 fee from RBC.Going to try to use TransferWise to see how we go. =)
Feel free to use my code. I only need 1 more to get the bonus!!!!!