Depositing in Euros
Looking for help when depositing in euros. I have a MB account, set up in £. Can I transfer money across from here and at what cost or am I better off depositing using debit card ( Nat West) ???
Long term am looking to set up a Neteller account but thinking this best set up in $.
Can anyone confirm if I am on the right track?
Post from HeeeHAWWWW at RP:
"Dunno, if anyone's interested, but just figured out moneybooker's exact exchange rate method:
Rates are updated every 15 minutes (6pm, 6:15, 6:30 etc), and use the opening price from the previous update. Their "wholesale rate" is then 0.5% worse than that, and then they add 1.75% commission, ie a total of 2.25875% exactly.
Thus, if you transfer at 6:29pm, you get the rate from 6pm[6.15pm surely?], minus 2.25875%. You can get exact rates from xe.com (tools/charts, set it to one minute update, use the opening price).
Doesn't sound like much, but e/rates have been bouncing around something crazy. On a 10k transfer you can save 20-50 quid just by timing it 15 minutes different"
I think he means it updates each 15 mins but with the previous rate. So at 6:15 it would be updated to 6pms rate. At 6:30 it would update with the rate from 6:15. So at 6:29, the last update was 6:15 so you get the rate from 6pm.
Originally Posted by Pokebus
To answer your question James, I have always found it better to use MB for exchange transactions than banks or CCs. The rates are better and there are no nasty fees (banks love to add fees). If you do loads of MB transactions then you can get VIP status, and then you can have two MB accounts in different currencies.
As to calculating the MB transactions; I have never managed to work out how they triangulate through the Euro. So If I transfer From £ to $ then first they convert to € using the £/€ rate and then they convert to dollars using the $/€ rate. Doing this does not seem to incur 1.75% each time, but it is not 2.25875% either (But I will go back and check that...)
Anyone else managed to figure out the calculation for £->$?
Threads merged, see above for more useful info and use the tagged thread links below.
This is almost where I am.
Originally Posted by JamesAdamson
For £ I just use a halifax debit card with a dedicated student current account. I don't use it for anything else, and I've never had any charges (maybe 25p once or twice) so never saw the need for moneybookers. Don't mind waiting a few days for withdrawals as I keep enough float.
For $ I've opened a neteller which is GBP at the moment but I'm going to change to USD. Then I'll fund that once when the exchange rate is good, and to keep it separate just dutch US books with pinny, and perhaps open another betfair account in $. Either way it'll be a closed system. I'm going to be spending quite some time in the states so I'll keep it as dollars and never need to worry about the exchange rate.
For € I'm not sure what to do. I was thinking about doing a closed loop system by opening a euro moneybookers account (since I don't need MB for £, and won't need it for $ once neteller is up and running.) I'd fund that moneybookers account once and then open a betfair account in euros, and just lay euro bookie agains euro exchange, eventually withdrawing euros back to £.
Does that seem like a plan? Or would it be better to just stick to a debit card, and just lay the euro bookies against my £ betfair account? That would leave the moneybookers account free for use for.. dollars?
That's my main question. I'm 100% I want to keep USD on a completely separate loop, but don't know whether I should for euros with a € moneybookers and € betfair account, or should just stick to laying £ vs € and underlay slightly to compensate for conversion fees on the withdrawals.
Thanks a bunch
I wrestled with the same question a while back and in the end to be honest I never came to any hard and fast conclusion - I thought I would use a second VIP moneybookers account for USD and then use Nationwide Flex for Euro, but to be honest it's not really worked out like that. Similarly regards the closed loop, I had planned to do that but it's just not worked out that way really - although I do have a float in USD, it's really wasted during any period where I'm not working in USD (I should do something about that really and put it to work!).
But generally your plan sounds good. There's always the issue of forex fluctuations though of course, for example as the pound strengthens against the dollar, all those USD I bought back 2-3 months ago are starting to lose their value... almost makes it worthwhile taking the hit for converting them back to GBP unless I@m going to start utilizing the USD in US books soon.
On a related note, has anyone tried to withdraw from Monebookers USD back to a Nationwide Flex debit card? I'm just wondering whether the conversion is done at the Monebookers side (which would be costly) or at the Nationwide side (which might not be so costly).
Dirty, dirty basta.....
As a relatively new Moneybookers user I was enjoying the experience.
Until the man in their forex department decided that £30 "lost" in exchange rates (on 900e wd to GBP) wouldn't go noticed.
Is it / has it always been that bad - it turned my £55 matched bet profit in to £25.00 - I'm still beside myself.
Aside from aiming for VIP status (which when I do it, I'll use for $'s) is there a way around this..
I've just found: International bank account - Why bank in different currencies? - Lloyds TSB International
Which looks like it'll give me a e or $ account for a £7.50 per month charge - has anyone bothered going to these lengths?
I actually think I might cry.
Do we all just live with this?
I am not in the UK, so I am not the one to give you the best answer. What I have read though is that a lot of people use Nationwide Flex.
You should also look in to getting yourself a Neteller account in addition to your moneybookers account. That way you can have a float for both GBP and EUR/USD.
From what I read your moneybookers account is in GBP. You will lose out in the long run if you plan on doing bookies that only has € or $ as option. You should open a neteller account with either € or $. I would suggest USD as there are a lot of good US books out there, and it will be useful when you want to dutch US sports. But this is really up to you.
Both neteller and moneybookers charge about 2% of the total amount in currency fees.
Yes it is quite bad but at the end of the day Moneybookers are offering a service for which they want to get paid and the rate that they use to be fair is roughly equivalent to most of the high street banks. But of course that doesn't make it any more palatable.
Originally Posted by mrbenjaminjo
As mentioned above you can use Nationwide Flex for overseas transfers - they DID offer a zero percent rate for transfers to foreign currency, however since 3 days ago they have increased the GBPUSD charge to 1% or something like that (0.8% comes to mind for some reason). I think GBPEUR transactions are cheaper than USD... whatever it is they do charge for it now since this last week.
The Gambling Times - Threads Tagged with nationwide
There is also another new bank called Ivobank that also offer international currency accounts for UK residents. I don't know a lot about them though or whether they're regulated by the FSA/covered by the FSCS etc.
Holding a float of USD currency is a good idea, BUT it means you are exposed to currency fluctuations - any fluctuation in GBPUSD etc means you either gain or lose money depending on whether the pound loses or gains strength against the dollar.
Some people just live with it - 'what goes up can come down' etc. However it does depend on when you bought into the dollar as well to a large extent. For example if you bought into the dollar 3 months ago when the pound was very weak, right now you're getting hammered as the pound slowly gains strength back against the dollar. Arguably if you bought into USD right now then it could go either way... although this is always true at any point in time really, who has a crystal ball after all.
There is the possibility of hedging any foreign exposure by buying GBPUSD on a spread bet / CFD (contract for difference) account for example if you have USD exposure. That way when the GBPUSD rate goes up, you 'win' money on the spread bet which offsets the corresponding loss you make on the USD exposure. However this isn't easy to do if you have less than $10k in USD since most spread markets only allow you to buy £1 per 0.0001 GBPUSD 'pip' movement (which equates to a $10k USD exposure).
The Gambling Times - Threads Tagged with currency
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