Moving money between countries

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A_C_E
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Joined: Fri Feb 22, 2013 11:22 pm

Moving money between countries

Post by A_C_E » Wed Mar 29, 2017 4:04 pm

What is the cheapest and safest way to send a large sum (6 digits in $) of money from:
1. USA to India
2. India to USA
Thank you!

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LiveSimple
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Re: Moving money between countries

Post by LiveSimple » Wed Mar 29, 2017 4:17 pm

Bank wire transfer

A_C_E
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Re: Moving money between countries

Post by A_C_E » Wed Mar 29, 2017 5:58 pm

Don't banks offer poor exchange rates? Are some better than others?

enebyberg
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Re: Moving money between countries

Post by enebyberg » Wed Mar 29, 2017 6:45 pm

Bank wire transfer. I've done it before. Works pretty well. Try to send it through a US bank that has relations with a bank in Indian. Or has relations with a bank in a place like London that has a lot of dealing with your bank in India. That helps to cut the cost. Send it on a day that does not have a lot of currency volatility.

Diogenes
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Re: Moving money between countries

Post by Diogenes » Wed Mar 29, 2017 8:26 pm

Bank wire transfer is generally the worst way to move money. High fees, bad rate spread. Try TransferWise, you will receive the spot rate and a low fee.
I uses them frequently. Great app, and efficient movements.

Gill
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Location: Florida

Re: Moving money between countries

Post by Gill » Wed Mar 29, 2017 8:37 pm

Diogenes wrote:Bank wire transfer is generally the worst way to move money. High fees, bad rate spread. Try TransferWise, you will receive the spot rate and a low fee.
I uses them frequently. Great app, and efficient movements.
You would trust a large sum to this outfit? No thanks. I'll use one of the major international banks.
Gill

egoldstein
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Re: Moving money between countries

Post by egoldstein » Wed Mar 29, 2017 11:25 pm

I use TransferWise for international transfers, which requires an established bank account at both ends. I have no complaints and the exchange rates and fees are more attractive than offered directly by my bank.

AlohaJoe
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Location: Saigon, Vietnam

Re: Moving money between countries

Post by AlohaJoe » Thu Mar 30, 2017 12:26 am

Gill wrote:
Diogenes wrote:Bank wire transfer is generally the worst way to move money. High fees, bad rate spread. Try TransferWise, you will receive the spot rate and a low fee.
I uses them frequently. Great app, and efficient movements.
You would trust a large sum to this outfit? No thanks. I'll use one of the major international banks.
Yes. I've used transferwise, currencyfair, and ofx for similar amounts of money.

A current quote tells me that if I transfer $USD200,000 to Australia via Wells Fargo I get $AUD248,880. If I transfer it with OFX I get $261,011. Paying $AUD12,000 (about $USD9,000) is a pretty steep price for insurance to use a major bank instead of OFX. But some people are happy to pay that $9,000.

To the OP: Using any of these services will generally result in better exchange rates than using a bank. However, there are some circumstances where banks will give you favorable rates. It is easy to call your bank and ask for a quote and then compare it to what OFX/whatever will give you. I've done that numerous times as have many of my friends. A few minutes on the phone to save thousands of dollars is a no-brainer.

With a transfer of that size, the exchange rate is what you care about the most. The wire transfer fee is likely less than $100, so I wouldn't worry too much about it.

One downside to using OFX/whatever is...you still need to get money from your account to their account. If you do that with a wire transfer then ... obviously you're still paying a wire transfer fee. You can move the money "for free" using ACH but there are daily limits ($25,000 or $50,000 I think) and the settlement takes longer (2-3 days) compared to a wire transfer. Also, setting up ACH involves a delay -- usually a week or so.

Cruise
Posts: 590
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Re: Moving money between countries

Post by Cruise » Thu Mar 30, 2017 12:57 am

https://transferwise.com/us/

I just did a sample transfer of 100K USD to Indian Rupee:
715 USD TransferWise fee (included)
64.93750 Guaranteed exchange rate
6,447,319.69 Rupee

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randomizer
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Re: Moving money between countries

Post by randomizer » Thu Mar 30, 2017 1:04 am

Another vote for Transferwise. I've also used OFX, which is almost as cheap. Banks will rob you blind for this kind of thing.
75:25 — HODL the course!

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kramer
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Location: Philippines

Re: Moving money between countries

Post by kramer » Thu Mar 30, 2017 4:10 am

Ideally, you have a US dollar account to receive the funds, at least for the US to India transfer. I don't know if this is possible in India.

Here in the Philippines they have US dollar accounts at banks and moving that kind of money would probably only cost the wire transfer fee (say less than 50 dollars). Then you can exchange in the country to get a better rate.

Rookie_Investor_Bob
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Re: Moving money between countries

Post by Rookie_Investor_Bob » Thu Mar 30, 2017 8:00 am

1. USA to India you can wire the money for a small fee(compared to the 6 digit $) from the bank. For small amounts I have sent a account payee check.
2. India to USA: I usually do it through a demand draft from a nationalized bank for best rates.

I am not very comfortable with online transfer website because they ask for my social.

A_C_E
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Re: Moving money between countries

Post by A_C_E » Thu Mar 30, 2017 11:02 am

Thank you all for the responses. The wire fee as I understand is only a minor expense. Looks like travel wise seems to be cheaper than xoom, a service I previously used. That helps answer the question about transfer from us to India.
I am still struggling with transferring large sums from an outside country to here. Quora had the following link:
https://www.quora.com/What-is-the-cheap ... ndia-to-US
Any idea if that is a good way or if I should just go with a DD from a nationalized bank?
Thank you!

Bud
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Re: Moving money between countries

Post by Bud » Thu Mar 30, 2017 12:49 pm

Transferwise....

Diogenes
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Re: Moving money between countries

Post by Diogenes » Thu Mar 30, 2017 2:44 pm

Gill wrote:
Diogenes wrote:Bank wire transfer is generally the worst way to move money. High fees, bad rate spread. Try TransferWise, you will receive the spot rate and a low fee.
I uses them frequently. Great app, and efficient movements.
You would trust a large sum to this outfit? No thanks. I'll use one of the major international banks.
Gill
Well, let's see. Major investors are a founder of PayPal, plus Peter Thiel, and Richard Branson. Those guys trust them. TW moves $1B per month, have a London HQ and 600 employees. So the answer is yes I do. I have had nothing but good experiences over the many times I have used them, but did some research.
Many people thought the same way about Amazon, back in the day. Why would anyone buy books over the internet?
For anyone that routinely and regularly personally move funds internationally monthly, bank wires are foolish. They really nail you on the spot rate spread, even if the bank claims not to charge a fee. Also, if your funds are sent in Dollars instead many banks at the other end will nail you even more. TransferWise sends the money in the local currency. There are a couple of other similar firms, but not as well backed.

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