Wire $50K Out of the Country

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JHU ALmuni
Posts: 125
Joined: Tue Jan 20, 2015 12:40 pm

Wire $50K Out of the Country

Post by JHU ALmuni » Fri Jan 18, 2019 10:47 am

Looking for a recommendation on the best way to wire $50K Out of the country. My bank offer wire transfers but their exchange rate is not the greatest and will end up losing close to $1K because of their exchange rate.

I also just tried World First bank with $1K that was transfered last week and still not received at destination, so they seem slow.

Any other suggestions on how to wire the money and get a favorable exchange rate?

michaeljmroger
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Re: Wire $50K Out of the Country

Post by michaeljmroger » Fri Jan 18, 2019 11:22 am


JohnFiscal
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Location: Florida

Re: Wire $50K Out of the Country

Post by JohnFiscal » Fri Jan 18, 2019 9:00 pm

I have recent personal experience with this by recently sending about $32K USD to our Canadian bank from the US. Also I'm aware of international transfers generally due to sending funds to wife's family's home country as well as to Canada. For the recent large transfer I could have transferred directly between our RBC US account and our RBC Canadian account; it would have been very fast but would have cost around $800 in the "hidden fees" of the exchange rate. As you say, wire transfer is fast and we did do that a few years ago: wire transfer to a Canadian bank. Fast, but expensive on direct fees and on the exchange rate from Chase Bank.

For the recent exchange I shopped around. This article is quite good: https://www.nerdwallet.com/blog/banking ... countries/, it mentions the 'transferwise' mentioned earlier.

In the end I used www.ofx.com, also mentioned in the article. Neither transferwise or ofx are wire transfers (although I believe both offer wires at additional cost) but more like EFTs in the US. The process is a bit slow as first you have to "link" the source bank to ofx, and then link the recipient's bank to ofx. This can take a few days. I started with a small transfer of $150.00 US to make certain I had the correct destination. When that showed up I immediately sent the balance. Customer service was excellent, as a new client they called me a couple of times. For the second, largest, transfer the total time was about 5 business days. Excruciatingly slow. But worth it to me to save close to $1000 US.

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JoMoney
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Re: Wire $50K Out of the Country

Post by JoMoney » Fri Jan 18, 2019 9:20 pm

The country you're transferring to might make a difference.
I've used xe.com 'Personal Money Transfer' in the past to transfer to an Australian bank account. The XE.com service was actually through a company called "Custom House" which was bought by Western Union.
https://www.xe.com/xemoneytransfer/
https://onlinefx.westernunion.com/
They offered the ability to 'Wire', but that had extra fees and I wasn't rushed so used the feature where I transferred via ACH to them, and they deposited it using a foreign equivalent. The exchange rate was much better than any of the bank offerings, the only thing better I found was withdrawing cash via ATM with my no-foreign transaction fee, atm fees reimbursed account... and then depositing the cash (but the amount was limited to my daily ATM limit).
The only downside I had with the xe.com transfer was the process of providing and verifying documentation to prove my identity and the accounts was a bit cumbersome.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

SoHobo
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Re: Wire $50K Out of the Country

Post by SoHobo » Fri Jan 18, 2019 9:35 pm

I have used XE to transfer money from Europe to the USA. The rates were good and the transfers were executed very quickly.
I used a bank before, the same bank in Europe as in the USA. Wire transfer costs on both sides, poor rates and slow execution.

AlohaJoe
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Re: Wire $50K Out of the Country

Post by AlohaJoe » Fri Jan 18, 2019 9:37 pm

JHU ALmuni wrote:
Fri Jan 18, 2019 10:47 am
Looking for a recommendation on the best way to wire $50K Out of the country. My bank offer wire transfers but their exchange rate is not the greatest and will end up losing close to $1K because of their exchange rate.
Why are you using your bank to exchange money? Just wire it in USD and leave it up to the recipient decide what to do with USD. It is their responsibility, not yours, and they should be the one researching options.

introvertengineer
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Location: Califronia

Re: Wire $50K Out of the Country

Post by introvertengineer » Fri Jan 18, 2019 9:43 pm

I use Transfer Wise and the fund arrvies to the destination country on the same day, and withdrawal from my bank is done in the following days. Depends on which country you want to transfer money, this experience could be different.

jminv
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Re: Wire $50K Out of the Country

Post by jminv » Fri Jan 18, 2019 9:45 pm

What is the currency pair? This matters.for example, ofx has good rates on some pairs but on one that I’m familiar with you can lose 4%. This is a pair that not every transfer firm has so less competition, terrible rate. Another reason I don’t like ofx is their mandatory know your customer personal phone call whereas the other companies don’t do this. Be prepared to talk to them for 10-20 minutes on what pairs you want to use, how much you’re going to transfer, how often you’ll transfer. and what the expenses are for.

There are some sites that let you compare the rates you will receive for your particular dollar amount and currency pair. For example:
https://www.finder.com/international-money-transfers

If you were converting, for example, 32k dollars to euros then transferwise has the best rate of the ones they compare.

I used to use Schwab and then xe. Lately, I’ve started using transferwise since I have regular expenses in the 2-3k range, they’re competitive, it’s simple, and they’re very fast now with my currency pair (24 hours).

cheesepep
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Re: Wire $50K Out of the Country

Post by cheesepep » Fri Jan 18, 2019 10:00 pm

Question for foreign wires. This happens to me and happens to foreign clients who wire money to me. When someone wires, say $1000, to a foreign bank (or vice versa), I receive only $975 and I also pay a $15 wire transfer fee, so I only receive $960. How come I can't receive $1000 (of course I owe the $15)? The other side also pays the wire transfer fee also...

On a side note, do I report this $1000 or $975 as income?

AlohaJoe
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Re: Wire $50K Out of the Country

Post by AlohaJoe » Sat Jan 19, 2019 2:35 am

cheesepep wrote:
Fri Jan 18, 2019 10:00 pm
Question for foreign wires. This happens to me and happens to foreign clients who wire money to me. When someone wires, say $1000, to a foreign bank (or vice versa), I receive only $975 and I also pay a $15 wire transfer fee, so I only receive $960. How come I can't receive $1000 (of course I owe the $15)? The other side also pays the wire transfer fee also...

On a side note, do I report this $1000 or $975 as income?
I've never seen that happen with an international wire transfer. You'll need to ask the sending bank. But my guess is the other side isn't actually paying a wire transfer fee and instead told the bank to take the $25 fee out of the amount transferred.

You only received $975, so report $975.

jminv
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Re: Wire $50K Out of the Country

Post by jminv » Sat Jan 19, 2019 6:34 am

cheesepep wrote:
Fri Jan 18, 2019 10:00 pm
Question for foreign wires. This happens to me and happens to foreign clients who wire money to me. When someone wires, say $1000, to a foreign bank (or vice versa), I receive only $975 and I also pay a $15 wire transfer fee, so I only receive $960. How come I can't receive $1000 (of course I owe the $15)? The other side also pays the wire transfer fee also...

On a side note, do I report this $1000 or $975 as income?
Your clients should be sending you a wire so that you receive $1000, before any fees your bank charges you. So with your current banking arrangement you should receive $1000, then your bank charges you $15, and you net $985. You should not be receiving $960. That suggests to me that either your clients are sending you the $1000 but deducting a 2.5% wire transfer fee of some kind on their end (they could also be sending you whatever $1000 is in foreign currency and letting it convert on your end where you're charged a 2.5% fee by your bank rather than sending you $1000 which would save them the conversion fees) or your bank is charging you $15 plus some other $25 fee. Ask your bank to verify it's not on your end. You need to modify your payment terms to ensure that you receive $1000 net of all fees on their end, not $1000 minus any fees they incur on their side and not $1000 in foreign currency which is converted on your end, not theirs.

As to the $15 incoming wire transfer fee your bank charges on your end, find a bank/broker that doesn't charge for incoming wires, such as Schwab. This, and the foreign atm fee rebates, is why I originally used Schwab.

ivk5
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Re: Wire $50K Out of the Country

Post by ivk5 » Sat Jan 19, 2019 7:45 am

As noted by other posters, OP needs to provide the currency pair. Presumably USD to ???

TransferWise good for many but can sometimes do better. (Eg I do much better than TransferWise on CHF to USD using Revolut during business hours.)

heerekj1
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Re: Wire $50K Out of the Country

Post by heerekj1 » Sat Jan 19, 2019 9:27 am

Based on recommendations here, I used transferwise last year to transfer 45K to Australia. It costs about $340. I was very satisfied with their customer support.

You will need to provide additional forms of identification if you transfer more than 10K or have multiple transfers that add up to more than 10K. I think I needed to provide a picture of a utility bill with my name and address, picture of myself holding my drivers license and something else. Each transfer seem to take 2-3 business days.

typical.investor
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Re: Wire $50K Out of the Country

Post by typical.investor » Sat Jan 19, 2019 10:04 am

jminv wrote:
Sat Jan 19, 2019 6:34 am
cheesepep wrote:
Fri Jan 18, 2019 10:00 pm
Question for foreign wires. This happens to me and happens to foreign clients who wire money to me. When someone wires, say $1000, to a foreign bank (or vice versa), I receive only $975 and I also pay a $15 wire transfer fee, so I only receive $960. How come I can't receive $1000 (of course I owe the $15)? The other side also pays the wire transfer fee also...

On a side note, do I report this $1000 or $975 as income?
Your clients should be sending you a wire so that you receive $1000, before any fees your bank charges you. So with your current banking arrangement you should receive $1000, then your bank charges you $15, and you net $985. You should not be receiving $960. That suggests to me that either your clients are sending you the $1000 but deducting a 2.5% wire transfer fee of some kind on their end (they could also be sending you whatever $1000 is in foreign currency and letting it convert on your end where you're charged a 2.5% fee by your bank rather than sending you $1000 which would save them the conversion fees) or your bank is charging you $15 plus some other $25 fee. Ask your bank to verify it's not on your end. You need to modify your payment terms to ensure that you receive $1000 net of all fees on their end, not $1000 minus any fees they incur on their side and not $1000 in foreign currency which is converted on your end, not theirs.

As to the $15 incoming wire transfer fee your bank charges on your end, find a bank/broker that doesn't charge for incoming wires, such as Schwab. This, and the foreign atm fee rebates, is why I originally used Schwab.
Not sure it's just you and them. There are likely intermediate banks in the middle. The client is probably actually sending $1000, but that's not what your bank recieves.

AlohaJoe
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Re: Wire $50K Out of the Country

Post by AlohaJoe » Sat Jan 19, 2019 10:08 am

typical.investor wrote:
Sat Jan 19, 2019 10:04 am
Not sure it's just you and them. There are likely intermediate banks in the middle. The client is probably actually sending $1000, but that's not what your bank recieves.
Ah, true, I forgot about correspondent banks & their hidden fees. If you don't pay careful attention it is very easy to get hit by them.

Here's one article I quickly googled that gives an overview: http://expatfinance.net/international-b ... -bank-fees

lostdog
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Re: Wire $50K Out of the Country

Post by lostdog » Sat Jan 19, 2019 10:09 am

Just as long as it's not to a Nigerian king...
Total World Stock and Total World Bond. The simple two fund diversified portfolio. "Simplicity is the master key to financial success."

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