# Money transfer



## italihurr (Feb 28, 2017)

Hello all.

I want to transfer from the UK a fairly substantial sum of money and understand the rate is normally better (maybe 3 cents of a Euro per GBP?) through a broker/exchange house than via a bank. However, how secure is it? There appears to be a strong element of trust in this (the customer must, obviously, first transfer the money to the broker). 

Any advice here, please? Any recommended company?


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## tmarshall57 (Jan 17, 2017)

I've used HIFX and Currencyfair to transfer chunks of money from the UK to my Sabadell account in advance of a property purchase. Both offer security guarantees and membership of / adherence to relevant regulatory bodies.

I found HIFX offered a guaranteed exchange rate in advance of you paying them by direct debit whereas Currencyfair offered an improved exchange rate that was fixed for your transaction if you had already transferred the money to your Currencyfair account. I found the difference in exchange rate with Currencyfair made them the most economical. They also charged no fees in my case.


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## Lynn R (Feb 21, 2014)

I also use Currency Fair for transferring money to Spain and have never had any problems. For transfers they charge a flat fee of €3 regardless of the amount, which is very cheap.


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## The Skipper (Nov 26, 2014)

italihurr said:


> Hello all.
> 
> I want to transfer from the UK a fairly substantial sum of money and understand the rate is normally better (maybe 3 cents of a Euro per GBP?) through a broker/exchange house than via a bank. However, how secure is it? There appears to be a strong element of trust in this (the customer must, obviously, first transfer the money to the broker).
> 
> Any advice here, please? Any recommended company?


The truth is that there is a risk. You are handing your money to an independent trading company that could, in theory, go bust before converting your money and sending it to your Spanish bank. That is why I use Transferwise, which not only gives a very competitive rate and transfers the money within hours, but it has substantial businessmen amongst its backers, including Sir Richard Branson. However, I would still feel uneasy about handing over a huge sum of money in one transaction and would make a series of daily transactions to spread the risk.


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## Alcalaina (Aug 6, 2010)

The Skipper said:


> The truth is that there is a risk. You are handing your money to an independent trading company that could, in theory, go bust before converting your money and sending it to your Spanish bank. That is why I use Transferwise, which not only gives a very competitive rate and transfers the money within hours, but it has substantial businessmen amongst its backers, including Sir Richard Branson. However, I would still feel uneasy about handing over a huge sum of money in one transaction and would make a series of daily transactions to spread the risk.


TransferWise and CurrencyFair are covered by the same security regulations as high street banks and the funds used for customer exchanges are kept separate from their own funds, so even in the extremely unlikely event of one going bust, your money would be safe.

https://www.currencyfair.com/trust/regulation/


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## Madliz (Feb 4, 2011)

CurrencyFair every time. I've found nowhere else with better rates or faster service.


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## tmarshall57 (Jan 17, 2017)

Madliz said:


> CurrencyFair every time. I've found nowhere else with better rates or faster service.


I agree, the current commercial exchange rate is 1.1710 euros to the GBP and Currencyfair are offering (for a £20k exchange transaction) 1.1660 to the GBP


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## Madliz (Feb 4, 2011)

tmarshall57 said:


> I agree, the current commercial exchange rate is 1.1710 euros to the GBP and Currencyfair are offering (for a £20k exchange transaction) 1.1660 to the GBP


That is the rate for an immediate exchange. I always set the rate I want, slightly more beneficial to me, naturally, and wait with crossed fingers. Only if I'm in a hurry do I go with the rate they are offering. A little patience often pays dividends!


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## 95995 (May 16, 2010)

The OP has posted the same question on the forums of 3 countries (Spain, France and Germany), and has been provided with a useful comparative link as well as suggestions etc. I suspect the query has been more than adequately responded to.

Just saying


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## The Skipper (Nov 26, 2014)

Alcalaina said:


> TransferWise and CurrencyFair are covered by the same security regulations as high street banks and the funds used for customer exchanges are kept separate from their own funds, so even in the extremely unlikely event of one going bust, your money would be safe.
> 
> https://www.currencyfair.com/trust/regulation/


In theory yes but companies that get into difficulties don't always obey the regulations - just like firms of solicitors who are are supposed to keep clients' money in separate accounts but don't always do it. Many solicitors have been struck off for improperly using client funds in difficult times although in such cases the Law Society covers the clients' loss. I agree, however, that the risks of transferring money with companies like Currency Fair and Transferwise are very low but I don't think anyone can say with absolute certainty that the money is 100% safe.


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## 95995 (May 16, 2010)

The Skipper said:


> In theory yes but companies that get into difficulties don't always obey the regulations - just like firms of solicitors who are are supposed to keep clients' money in separate accounts but don't always do it. Many solicitors have been struck off for improperly using client funds in difficult times although in such cases the Law Society covers the clients' loss. I agree, however, that the risks of transferring money with companies like Currency Fair and Transferwise are very low but I don't think anyone can say with absolute certainty that the money is 100% safe.


And a great many banks have ignored regulations and acted illegally. Banks are most certainly not 100% safe either.


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