Charles Schwab brokerage funding in foreign currency

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Topic Author
holaquetal
Posts: 10
Joined: Wed May 13, 2020 2:43 am

Charles Schwab brokerage funding in foreign currency

Post by holaquetal » Fri May 22, 2020 1:17 am

Hi,

I was wondering if there's someone here who uses Charles Schwab and has sent funds to his/her account sending foreign currency to the correspondent banks that Charles Schwab has over the world. If you do, if you are sending the foreign currency domestically, let's say GBP from an UK bank account to their correspondent bank account in the UK, did you need to do a SWIFT transfer or a domestic transfer was enough?

I have sent MXN in Mexico via a domestic transfer a year ago, and it was credited in USD in around 48 hours without issues, it was a small amount of money. I recently sent more via domestic transfer, and they can't credit the money because apparently the domestic transfer does not send all my details and they need to inquiry about it more with their correspondent bank. They told me I should have sent a SWIFT wire, but my banks are reluctant to do a SWIFT wire if it is a domestic transfer. Has somebody had a similar situation happen?

typical.investor
Posts: 1897
Joined: Mon Jun 11, 2018 3:17 am

Re: Charles Schwab brokerage funding in foreign currency

Post by typical.investor » Fri May 22, 2020 1:57 am

holaquetal wrote:
Fri May 22, 2020 1:17 am
I have sent MXN in Mexico via a domestic transfer a year ago, and it was credited in USD in around 48 hours without issues, it was a small amount of money. I recently sent more via domestic transfer, and they can't credit the money because apparently the domestic transfer does not send all my details and they need to inquiry about it more with their correspondent bank. They told me I should have sent a SWIFT wire, but my banks are reluctant to do a SWIFT wire if it is a domestic transfer. Has somebody had a similar situation happen?
I have never done it.

I assume you have seen this https://www.schwab.com/public/file/P-10740369

So your local bank where you have MXN doesn't want to use SWIFT because you are sending it to Schwab's bank which is also in Mexico?

In any case, the above document from Schwab states "To ensure your account is properly credited, please provide the eight-digit
account number and name(s) listed on your Schwab account.". Perhaps that is what was missing. Maybe you can get your bank to include that next time. Schwab seems to recommend telling them they need to do that before initiating the transfer.

Topic Author
holaquetal
Posts: 10
Joined: Wed May 13, 2020 2:43 am

Re: Charles Schwab brokerage funding in foreign currency

Post by holaquetal » Fri May 22, 2020 2:08 am

typical.investor wrote:
Fri May 22, 2020 1:57 am
holaquetal wrote:
Fri May 22, 2020 1:17 am
I have sent MXN in Mexico via a domestic transfer a year ago, and it was credited in USD in around 48 hours without issues, it was a small amount of money. I recently sent more via domestic transfer, and they can't credit the money because apparently the domestic transfer does not send all my details and they need to inquiry about it more with their correspondent bank. They told me I should have sent a SWIFT wire, but my banks are reluctant to do a SWIFT wire if it is a domestic transfer. Has somebody had a similar situation happen?
I have never done it.

I assume you have seen this https://www.schwab.com/public/file/P-10740369

So your local bank where you have MXN doesn't want to use SWIFT because you are sending it to Schwab's bank which is also in Mexico?

In any case, the above document from Schwab states "To ensure your account is properly credited, please provide the eight-digit
account number and name(s) listed on your Schwab account.". Perhaps that is what was missing. Maybe you can get your bank to include that next time. Schwab seems to recommend telling them they need to do that before initiating the transfer.
Yup with that PDF as reference.

Yes, basically that is the reason they are giving me they can't do SWIFT. I asked with a few banks I got accounts with, I think it might just not be a common operation in the branches I have my accounts.

I didn't inform it before transfer, but they told me my account number and name was there of my Schwab account, but that they couldn't see my origin bank name, account's owner and number, address of the bank and my address, etc and that it needs to be there for compliance reasons, so supposedly they would ask their correspondent bank for that data, but that it could take time. I informed I have made the exact same operation a few months ago, they were even able to track this operations and found out they look exactly the same as this one but they were credited though, really weird honestly.

typical.investor
Posts: 1897
Joined: Mon Jun 11, 2018 3:17 am

Re: Charles Schwab brokerage funding in foreign currency

Post by typical.investor » Fri May 22, 2020 2:16 am

holaquetal wrote:
Fri May 22, 2020 2:08 am
I didn't inform it before transfer, but they told me my account number and name was there of my Schwab account, but that they couldn't see my origin bank name, account's owner and number, address of the bank and my address, etc and that it needs to be there for compliance reasons, so supposedly they would ask their correspondent bank for that data, but that it could take time. I informed I have made the exact same operation a few months ago, they were even able to track this operations and found out they look exactly the same as this one but they were credited though, really weird honestly.
I think they maybe processed it last time even though it wasn't strictly "in compliance", but they don't want to keep doing that.

Topic Author
holaquetal
Posts: 10
Joined: Wed May 13, 2020 2:43 am

Re: Charles Schwab brokerage funding in foreign currency

Post by holaquetal » Fri May 22, 2020 2:24 am

typical.investor wrote:
Fri May 22, 2020 2:16 am

I think they maybe processed it last time even though it wasn't strictly "in compliance", but they don't want to keep doing that.
Yeah I agree with you.

German Expat
Posts: 677
Joined: Fri Oct 16, 2009 10:49 pm

Re: Charles Schwab brokerage funding in foreign currency

Post by German Expat » Fri May 22, 2020 4:47 am

I have a standing monthly order sending Swiss Francs (using the IBAN shown in the PDF) and it works without a glitch every month. I am considering stopping it to swap fully to Revolut and IB for the no fee currency exchange. I use IB for larger amounts and once in a while use Revolut for smaller amounts (up to 6k per month free currency exchange).
Convenience with the automatic transfer keeps me sending it direct to Schwab and the exchange rate is decent.

Skiandswim
Posts: 143
Joined: Tue Dec 21, 2010 3:24 pm

Re: Charles Schwab brokerage funding in foreign currency

Post by Skiandswim » Fri May 22, 2020 5:56 am

I have had challenges with the Charles Schwab international transfers (maybe just operator error). Now I just use TransferWise (several other similar services), enter my associated debit card and funds are exchanged and deposited into USD / Euro account. Small fee ~ 0.5-1%, but exchange rates seem very competitive.

Topic Author
holaquetal
Posts: 10
Joined: Wed May 13, 2020 2:43 am

Re: Charles Schwab brokerage funding in foreign currency

Post by holaquetal » Fri May 22, 2020 11:12 am

German Expat wrote:
Fri May 22, 2020 4:47 am
I have a standing monthly order sending Swiss Francs (using the IBAN shown in the PDF) and it works without a glitch every month. I am considering stopping it to swap fully to Revolut and IB for the no fee currency exchange. I use IB for larger amounts and once in a while use Revolut for smaller amounts (up to 6k per month free currency exchange).
Convenience with the automatic transfer keeps me sending it direct to Schwab and the exchange rate is decent.
IBKR has a mobile app that allows you to do currency exchanges at market rate without having to go "trader mode", might be worth for you to check it out as an extra to Revolut.

I am considering switching to IBKR as well. I have made some research and depositing MXN is much more painless from experiences I have got from other people, plus the control of when to exchange the money is nice. I was kind of reluctant because in my case I would have to pay inactivity fees for a couple of years probably but I am starting to think it might be worth it to pay.

Skiandswim wrote:
Fri May 22, 2020 5:56 am
I have had challenges with the Charles Schwab international transfers (maybe just operator error). Now I just use TransferWise (several other similar services), enter my associated debit card and funds are exchanged and deposited into USD / Euro account. Small fee ~ 0.5-1%, but exchange rates seem very competitive.
What kind of issues happened to you? I have used transferwise for some currency pairs but unfortunately mxn/usd is not available.

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