Suggested strategy for large international money transfer?

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notsure
Posts: 19
Joined: Sun Apr 21, 2013 9:39 am

Suggested strategy for large international money transfer?

Post by notsure » Fri Apr 26, 2013 1:40 pm

I anticipate making a large transfer (of more than $300,000) from a U.K. bank account to a U.S. bank account in the coming months (i.e. from £ to $). I have done some research but haven't found a strategy that seems to be risk-free and low-cost.

The forex companies I've read about, like currencyexchange.com or xe.com, seem a little too risky for me -- but maybe I'm being overcautious? I would be happier with a safer transfer if it cost slightly more. However, given the size of the transfer, I don't want to lose out too much.

I also wonder if I should be making multiple transfers over time instead of a single transfer, in order to spread the currency risk?

If anyone has any experience with such transfers, particularly between the U.K. and U.S., I would be very curious to hear about it.

Grt2bOutdoors
Posts: 19477
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Location: New York

Re: Suggested strategy for large international money transfe

Post by Grt2bOutdoors » Fri Apr 26, 2013 1:43 pm

Use a major bank to wire the money, in one transaction. I would not be playing with some online entity.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Jfet
Posts: 1081
Joined: Tue Dec 21, 2010 7:20 pm

Re: Suggested strategy for large international money transfe

Post by Jfet » Fri Apr 26, 2013 1:48 pm

Grt2bOutdoors wrote:Use a major bank to wire the money, in one transaction. I would not be playing with some online entity.
+1

I think the limit at Bank of America is around $5,000,000. It will probably get flagged and checked by some anti money laundering government entity but that is probably routine.

notsure
Posts: 19
Joined: Sun Apr 21, 2013 9:39 am

Re: Suggested strategy for large international money transfe

Post by notsure » Fri Apr 26, 2013 8:24 pm

I'm glad neither of you is against using a major bank. Thank you for the advice.

jenn3
Posts: 6
Joined: Sun Mar 04, 2012 7:13 pm

Re: Suggested strategy for large international money transfe

Post by jenn3 » Mon Apr 29, 2013 3:21 pm

I did this a few weeks ago, but not for such a large amount. The money was in my account at Barclays in UK.

At Barclays, FOREX trades over 25,000 GBP are arranged directly with the dealers and the price of the trade I was told when the deal was done is what I got, less a $20 fee lost on the way when it was wired to Vanguard.
The transfer took five days because I requested standard service for which Barclays charged 25 GBP.

Hope this is useful.

notsure
Posts: 19
Joined: Sun Apr 21, 2013 9:39 am

Re: Suggested strategy for large international money transfe

Post by notsure » Mon Apr 29, 2013 4:20 pm

Thanks jenn3. That is indeed helpful, real £-to-$ experience. I'll look into Barclays.

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