Dollars to Euros

For residents of Spain.
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Topic Author
devich
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Joined: Fri Apr 30, 2021 8:32 pm

Dollars to Euros

Post by devich »

Hi,

I'm curious as to how much it will cost to covert dollars to euros, in fees and bad exchange rates, and the easiest and/or least expensive way to do it. Say bringing $8,000 from US investment accounts monthly into a Spanish checking account.

Also, is it a good idea to use credit cards from US banks to buy things when living in Spain, I'm guessing that's an expensive way to covert dollars because of the euro exchange rate used or international transaction fees charged by the US bank? Are there any legal or regulatory pitfalls to having a credit card from a Spanish bank. Not using the credit cards to borrow, just to get rewards of some kind, pay it off each month.

I suppose a debit card tied to the Spanish checking account into which you've already exchanged dollars to euros could be used, but probably no rewards.

Thanks,
student
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Re: Dollars to Euros

Post by student »

A number of places reimburse ATM fees internationally and the exchange rate is good. Fidelity, Schwab, Chase Sapphire checking, Ally. See https://upgradedpoints.com/finance/best ... -atm-fees/
terran
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Re: Dollars to Euros

Post by terran »

Capital one credit cards (at least the quicksilver card) are good as they don't charge foreign transaction fees and the exchange rate is good. I'm sure there are others too. I want to look into the First Tech Federal Credit union card as it supposedly offers true chip and PIN like is used in most other countries (and no foreign transaction fees).

The Schwab investor checking debit card doesn't charge foreign transaction fees, has a good exchange rate, and reimburses ATM fees on ATM withdrawals, so that's a good way to get cash. I think I've heard the same about the Fidelity debit card, but haven't tried it.

I haven't used it, but if you need to actually transfer from dollars to euros or want to hold euros in an account I would take a look at https://wise.com/

I think https://www.interactivebrokers.com/ might be capable of holding/converting different currencies too.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

terran wrote: Sat Jul 24, 2021 9:40 pm Capital one credit cards (at least the quicksilver card) are good as they don't charge foreign transaction fees and the exchange rate is good. I'm sure there are others too. I want to look into the First Tech Federal Credit union card as it supposedly offers true chip and PIN like is used in most other countries (and no foreign transaction fees).

The Schwab investor checking debit card doesn't charge foreign transaction fees, has a good exchange rate, and reimburses ATM fees on ATM withdrawals, so that's a good way to get cash. I think I've heard the same about the Fidelity debit card, but haven't tried it.

I haven't used it, but if you need to actually transfer from dollars to euros or want to hold euros in an account I would take a look at https://wise.com/

I think https://www.interactivebrokers.com/ might be capable of holding/converting different currencies too.
I have IBKR and for the hell of it, deposited $20 and converted half as forex. When I went to the ATM (US) however, it simply showed my account balance as $18. If the ATM can exchange on the spot, do we even need to convert in advance?

I often hear that the exchange rate at the ATM is bad, but you guys are saying otherwise.
terran
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Re: Dollars to Euros

Post by terran »

Marseille07 wrote: Sat Jul 24, 2021 9:44 pm I have IBKR and for the hell of it, deposited $20 and converted half as forex. When I went to the ATM (US) however, it simply showed my account balance as $18. If the ATM can exchange on the spot, do we even need to convert in advance?
If all of your expenses are in Euros I suppose there could be an argument for holding some funds in euros to reduce currency fluctuation risk, but I don't know how big a deal that is.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

terran wrote: Sat Jul 24, 2021 9:48 pm
Marseille07 wrote: Sat Jul 24, 2021 9:44 pm I have IBKR and for the hell of it, deposited $20 and converted half as forex. When I went to the ATM (US) however, it simply showed my account balance as $18. If the ATM can exchange on the spot, do we even need to convert in advance?
If all of your expenses are in Euros I suppose there could be an argument for holding some funds in euros to reduce currency fluctuation risk, but I don't know how big a deal that is.
Yeah, I haven't been able to test how the balance shows up at the ATM abroad. As mentioned, my US ATM simply said $18; there was no trace of carrying another currency at all. If holding Euro will be worthwhile, the ATM needs to recognize my Euro holding.
EddyB
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Re: Dollars to Euros

Post by EddyB »

Marseille07 wrote: Sat Jul 24, 2021 9:51 pm
terran wrote: Sat Jul 24, 2021 9:48 pm
Marseille07 wrote: Sat Jul 24, 2021 9:44 pm I have IBKR and for the hell of it, deposited $20 and converted half as forex. When I went to the ATM (US) however, it simply showed my account balance as $18. If the ATM can exchange on the spot, do we even need to convert in advance?
If all of your expenses are in Euros I suppose there could be an argument for holding some funds in euros to reduce currency fluctuation risk, but I don't know how big a deal that is.
Yeah, I haven't been able to test how the balance shows up at the ATM abroad. As mentioned, my US ATM simply said $18; there was no trace of carrying another currency at all. If holding Euro will be worthwhile, the ATM needs to recognize my Euro holding.
I think the IBKR debit card will always operate in your base currency (dollars). However, IBKR can be a very good way to convert currency—at amounts of 20,000 euros or more, you are getting the spot rate on your conversion and paying a commission of 0.002% (or the minimum of $2). If you have a Spanish account in (exactly) the same name, you can then transfer euros to that account with no fees (on the IBKR side, anyway).
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

EddyB wrote: Sat Jul 24, 2021 11:55 pm I think the IBKR debit card will always operate in your base currency (dollars). However, IBKR can be a very good way to convert currency—at amounts of 20,000 euros or more, you are getting the spot rate on your conversion and paying a commission of 0.002% (or the minimum of $2). If you have a Spanish account in (exactly) the same name, you can then transfer euros to that account with no fees (on the IBKR side, anyway).
Yeah I'm aware IBKR's exchange rate is excellent. My question is, if I take the IBKR debit card abroad and try their ATM, can I withdraw the local currency that I have already converted prior to the trip. This would be extremely useful as I don't have to transfer money anywhere or get USD converted on the spot.
Topic Author
devich
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Re: Dollars to Euros

Post by devich »

terran wrote: Sat Jul 24, 2021 9:40 pm Capital one credit cards (at least the quicksilver card) are good as they don't charge foreign transaction fees and the exchange rate is good. I'm sure there are others too. I want to look into the First Tech Federal Credit union card as it supposedly offers true chip and PIN like is used in most other countries (and no foreign transaction fees).

The Schwab investor checking debit card doesn't charge foreign transaction fees, has a good exchange rate, and reimburses ATM fees on ATM withdrawals, so that's a good way to get cash. I think I've heard the same about the Fidelity debit card, but haven't tried it.

I haven't used it, but if you need to actually transfer from dollars to euros or want to hold euros in an account I would take a look at https://wise.com/

I think https://www.interactivebrokers.com/ might be capable of holding/converting different currencies too.
I went to WISE and it showed that to transfer $8,000.00 to euros would cost $20.75 in bank ACH fees and $34.69 in WISE fees, total fees of $55.44. Their exchange rate seems to match the dollar/euro exchange rate I see on Yahoo, 0.8495 euros per dollar, so that's good.

The result is fees of $55.44 per $8,000 which is 0.69%. If I'm operating on a 4% withdrawal from my retirement funds each year to live on, an expense of 0.69% is not trivial, it is 17.25% of my annual income.

If I convert a whole year's worth of dollars to euros, $96,000 at once, WISE says the ACH plus their fee is $417.18, or 0.43%, still not trivial at 10.75% of annual income...
EddyB
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Re: Dollars to Euros

Post by EddyB »

Marseille07 wrote: Sun Jul 25, 2021 12:00 am
EddyB wrote: Sat Jul 24, 2021 11:55 pm I think the IBKR debit card will always operate in your base currency (dollars). However, IBKR can be a very good way to convert currency—at amounts of 20,000 euros or more, you are getting the spot rate on your conversion and paying a commission of 0.002% (or the minimum of $2). If you have a Spanish account in (exactly) the same name, you can then transfer euros to that account with no fees (on the IBKR side, anyway).
Yeah I'm aware IBKR's exchange rate is excellent. My question is, if I take the IBKR debit card abroad and try their ATM, can I withdraw the local currency that I have already converted prior to the trip. This would be extremely useful as I don't have to transfer money anywhere or get USD converted on the spot.
No, you can’t (at least not when I looked at this last year).
Topic Author
devich
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Re: Dollars to Euros

Post by devich »

devich wrote: Sun Jul 25, 2021 12:30 am
terran wrote: Sat Jul 24, 2021 9:40 pm Capital one credit cards (at least the quicksilver card) are good as they don't charge foreign transaction fees and the exchange rate is good. I'm sure there are others too. I want to look into the First Tech Federal Credit union card as it supposedly offers true chip and PIN like is used in most other countries (and no foreign transaction fees).

The Schwab investor checking debit card doesn't charge foreign transaction fees, has a good exchange rate, and reimburses ATM fees on ATM withdrawals, so that's a good way to get cash. I think I've heard the same about the Fidelity debit card, but haven't tried it.

I haven't used it, but if you need to actually transfer from dollars to euros or want to hold euros in an account I would take a look at https://wise.com/

I think https://www.interactivebrokers.com/ might be capable of holding/converting different currencies too.
I went to WISE and it showed that to transfer $8,000.00 to euros would cost $20.75 in bank ACH fees and $34.69 in WISE fees, total fees of $55.44. Their exchange rate seems to match the dollar/euro exchange rate I see on Yahoo, 0.8495 euros per dollar, so that's good.

The result is fees of $55.44 per $8,000 which is 0.69%. If I'm operating on a 4% withdrawal from my retirement funds each year to live on, an expense of 0.69% is not trivial, it is 17.25% of my annual income.

If I convert a whole year's worth of dollars to euros, $96,000 at once, WISE says the ACH plus their fee is $417.18, or 0.43%, still not trivial at 10.75% of annual income...
My bad, no more drunk commenting, I promise, kind of,...the 0.43%-0.69% fees are only on the money I take out, not the whole retirement nest egg. A smallish 'income tax' of half a percent or so...
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

EddyB wrote: Sun Jul 25, 2021 12:31 am No, you can’t (at least not when I looked at this last year).
That's a bummer. So, does the ATM convert my USD to Euro on the spot? I'm hoping withdrawing Euro is possible, even if the source is USD and not the Euro in my account.
EddyB
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Re: Dollars to Euros

Post by EddyB »

Marseille07 wrote: Sun Jul 25, 2021 12:46 am
EddyB wrote: Sun Jul 25, 2021 12:31 am No, you can’t (at least not when I looked at this last year).
That's a bummer. So, does the ATM convert my USD to Euro on the spot? I'm hoping withdrawing Euro is possible, even if the source is USD and not the Euro in my account.
You almost certainly don’t want the ATM to make any conversion. IBKR is a MasterCard debit card. You can find the MasterCard conversion rate on the web, but it’s generally a “fair” rate. If you’re holding the currency in your account in an other-than-base currency, though, you may have to convert *that* currency back to dollars, too.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

EddyB wrote: Sun Jul 25, 2021 1:21 am
Marseille07 wrote: Sun Jul 25, 2021 12:46 am
EddyB wrote: Sun Jul 25, 2021 12:31 am No, you can’t (at least not when I looked at this last year).
That's a bummer. So, does the ATM convert my USD to Euro on the spot? I'm hoping withdrawing Euro is possible, even if the source is USD and not the Euro in my account.
You almost certainly don’t want the ATM to make any conversion. IBKR is a MasterCard debit card. You can find the MasterCard conversion rate on the web, but it’s generally a “fair” rate. If you’re holding the currency in your account in an other-than-base currency, though, you may have to convert *that* currency back to dollars, too.
Yeah, if the ATM abroad doesn't recognize my Euro then there's little point having Euro in IBKR. It's also a bummer if MasterCard's conversion rate sucks. I'm stuck, thought too high of IBKR and its ecosystem.
EddyB
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Re: Dollars to Euros

Post by EddyB »

Marseille07 wrote: Sun Jul 25, 2021 1:42 am
EddyB wrote: Sun Jul 25, 2021 1:21 am
Marseille07 wrote: Sun Jul 25, 2021 12:46 am
EddyB wrote: Sun Jul 25, 2021 12:31 am No, you can’t (at least not when I looked at this last year).
That's a bummer. So, does the ATM convert my USD to Euro on the spot? I'm hoping withdrawing Euro is possible, even if the source is USD and not the Euro in my account.
You almost certainly don’t want the ATM to make any conversion. IBKR is a MasterCard debit card. You can find the MasterCard conversion rate on the web, but it’s generally a “fair” rate. If you’re holding the currency in your account in an other-than-base currency, though, you may have to convert *that* currency back to dollars, too.
Yeah, if the ATM abroad doesn't recognize my Euro then there's little point having Euro in IBKR. It's also a bummer if MasterCard's conversion rate sucks. I'm stuck, thought too high of IBKR and its ecosystem.
Even though the ATM card doesn’t work as you’d like, IBKR is a good place to hold up to 100,000 euros (if cash is part of your AA), and it’s a great tool for both converting cash and transferring it across borders.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

EddyB wrote: Sun Jul 25, 2021 1:52 am Even though the ATM card doesn’t work as you’d like, IBKR is a good place to hold up to 100,000 euros (if cash is part of your AA), and it’s a great tool for both converting cash and transferring it across borders.
Indeed. This is something I'm planning to explore when we can ever go abroad.

The ATM card situation is really strange, since I had $10 and 6 EUR or so and my US ATM said $18; I wonder what would have happened if I went ahead and withdrew $18.
EddyB
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Re: Dollars to Euros

Post by EddyB »

Marseille07 wrote: Sun Jul 25, 2021 1:57 am
EddyB wrote: Sun Jul 25, 2021 1:52 am Even though the ATM card doesn’t work as you’d like, IBKR is a good place to hold up to 100,000 euros (if cash is part of your AA), and it’s a great tool for both converting cash and transferring it across borders.
Indeed. This is something I'm planning to explore when we can ever go abroad.

The ATM card situation is really strange, since I had $10 and 6 EUR or so and my US ATM said $18; I wonder what would have happened if I went ahead and withdrew $18.
This isn’t an endorsement, but you can access your available margin credit with the ATM card, so assuming you have investments there, you’d just take any excess (above your dollars) from margin.
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Didymograptus
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Re: Dollars to Euros

Post by Didymograptus »

I know that many on the "UK Yankee" message boards are very satisfied with the service and cost of Transferwise (now Wise) to move money from the US to the UK. I have no doubt that the service will be equally good moving money to Euros. In the past I've used Xoom which is currently a tad more costly but good service there too.
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Shallowpockets
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Re: Dollars to Euros

Post by Shallowpockets »

devich wrote: Sat Jul 24, 2021 9:27 pm Hi,

I'm curious as to how much it will cost to covert dollars to euros, in fees and bad exchange rates, and the easiest and/or least expensive way to do it. Say bringing $8,000 from US investment accounts monthly into a Spanish checking account.

Also, is it a good idea to use credit cards from US banks to buy things when living in Spain, I'm guessing that's an expensive way to covert dollars because of the euro exchange rate used or international transaction fees charged by the US bank? Are there any legal or regulatory pitfalls to having a credit card from a Spanish bank. Not using the credit cards to borrow, just to get rewards of some kind, pay it off each month.

I suppose a debit card tied to the Spanish checking account into which you've already exchanged dollars to euros could be used, but probably no rewards.

Thanks,
I read the replies and am confused. Seems like OP wants to access to $8k a month. He is thinking of converting it into euros and using a Spanish checking account. Not necessary at all. The easiest way is to simply use his CC or an ATM card (with no transaction/ATM fees reimbursed). Get Euros from the ATM for cash, otherwise credit cards. Cash management of his account from which he is drawing the $8K can be between US accounts. Use auto pay for the CC account. Same as on vacation. If the CC you use is a rewards CC of some sort, then you would still reap those rewards.
That's it.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

EddyB wrote: Sun Jul 25, 2021 2:04 am
Marseille07 wrote: Sun Jul 25, 2021 1:57 am
EddyB wrote: Sun Jul 25, 2021 1:52 am Even though the ATM card doesn’t work as you’d like, IBKR is a good place to hold up to 100,000 euros (if cash is part of your AA), and it’s a great tool for both converting cash and transferring it across borders.
Indeed. This is something I'm planning to explore when we can ever go abroad.

The ATM card situation is really strange, since I had $10 and 6 EUR or so and my US ATM said $18; I wonder what would have happened if I went ahead and withdrew $18.
This isn’t an endorsement, but you can access your available margin credit with the ATM card, so assuming you have investments there, you’d just take any excess (above your dollars) from margin.
If this is the site to look up the exchange rate, it doesn't seem terrible: https://www.mastercard.us/en-us/persona ... rency.html. Maybe one option is to just carry USD in IBKR and let them do the conversion on the spot.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

EddyB wrote: Sun Jul 25, 2021 1:21 am You almost certainly don’t want the ATM to make any conversion. IBKR is a MasterCard debit card. You can find the MasterCard conversion rate on the web, but it’s generally a “fair” rate. If you’re holding the currency in your account in an other-than-base currency, though, you may have to convert *that* currency back to dollars, too.
Checking my IBKR now, my forex position's gone...it just says $18 in USD. I deposited $20 previously and bought $10 worth of forex. I didn't close this position back to USD (as far as I remember). This is very strange, but can explain why the US ATM showed the balance as $18.
rich126
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Re: Dollars to Euros

Post by rich126 »

Shallowpockets wrote: Sun Jul 25, 2021 1:17 pm
devich wrote: Sat Jul 24, 2021 9:27 pm Hi,

I'm curious as to how much it will cost to covert dollars to euros, in fees and bad exchange rates, and the easiest and/or least expensive way to do it. Say bringing $8,000 from US investment accounts monthly into a Spanish checking account.

Also, is it a good idea to use credit cards from US banks to buy things when living in Spain, I'm guessing that's an expensive way to covert dollars because of the euro exchange rate used or international transaction fees charged by the US bank? Are there any legal or regulatory pitfalls to having a credit card from a Spanish bank. Not using the credit cards to borrow, just to get rewards of some kind, pay it off each month.

I suppose a debit card tied to the Spanish checking account into which you've already exchanged dollars to euros could be used, but probably no rewards.

Thanks,
I read the replies and am confused. Seems like OP wants to access to $8k a month. He is thinking of converting it into euros and using a Spanish checking account. Not necessary at all. The easiest way is to simply use his CC or an ATM card (with no transaction/ATM fees reimbursed). Get Euros from the ATM for cash, otherwise credit cards. Cash management of his account from which he is drawing the $8K can be between US accounts. Use auto pay for the CC account. Same as on vacation. If the CC you use is a rewards CC of some sort, then you would still reap those rewards.
That's it.
Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
----------------------------- | If you think something is important and it doesn't involve the health of someone, think again. Life goes too fast, enjoy it and be nice.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

rich126 wrote: Sun Jul 25, 2021 3:44 pm Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
Thanks, I've been asked this question and wasn't aware it's a trap & there's a clear answer as to which is better & why.
rich126
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Re: Dollars to Euros

Post by rich126 »

Marseille07 wrote: Sun Jul 25, 2021 3:46 pm
rich126 wrote: Sun Jul 25, 2021 3:44 pm Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
Thanks, I've been asked this question and wasn't aware it's a trap & there's a clear answer as to which is better & why.
Here are several articles on this situation.
https://www.forbes.com/sites/geoffreymo ... 3c79713307
https://www.godsavethepoints.com/credit ... les-trick/
https://go.hfcu.org/blog/why-you-should ... ing-abroad

And they all kind of say the following -
When I request to be charged in the local currency, my card issuer will make the conversion for me when they process the charge; banks and credit unions typically get the best exchange rate for the day of the purchase, which they pass on to their cardholders.

However, if I elect to be charged in U.S. currency, a third party enters the transaction, an intermediary between the merchant and the card issuer that calculates the currency exchange while I’m waiting to sign my charge slip. The convenience of knowing that my purchase cost X U.S. dollars as I’m settling my bill comes with a cost: anywhere from 3% to 3.5% of my purchase. On top of this fee, the intermediary will slap me with an exchange rate that’s not as good as the one my card issuer will give me.
----------------------------- | If you think something is important and it doesn't involve the health of someone, think again. Life goes too fast, enjoy it and be nice.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

rich126 wrote: Sun Jul 25, 2021 3:49 pm
Marseille07 wrote: Sun Jul 25, 2021 3:46 pm
rich126 wrote: Sun Jul 25, 2021 3:44 pm Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
Thanks, I've been asked this question and wasn't aware it's a trap & there's a clear answer as to which is better & why.
Here are several articles on this situation.
https://www.forbes.com/sites/geoffreymo ... 3c79713307
https://www.godsavethepoints.com/credit ... les-trick/
https://go.hfcu.org/blog/why-you-should ... ing-abroad

And they all kind of say the following -
When I request to be charged in the local currency, my card issuer will make the conversion for me when they process the charge; banks and credit unions typically get the best exchange rate for the day of the purchase, which they pass on to their cardholders.

However, if I elect to be charged in U.S. currency, a third party enters the transaction, an intermediary between the merchant and the card issuer that calculates the currency exchange while I’m waiting to sign my charge slip. The convenience of knowing that my purchase cost X U.S. dollars as I’m settling my bill comes with a cost: anywhere from 3% to 3.5% of my purchase. On top of this fee, the intermediary will slap me with an exchange rate that’s not as good as the one my card issuer will give me.
Thank you, very helpful. I think I was choosing USD previously, need to select local next time :-D
EddyB
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Re: Dollars to Euros

Post by EddyB »

Shallowpockets wrote: Sun Jul 25, 2021 1:17 pm
devich wrote: Sat Jul 24, 2021 9:27 pm Hi,

I'm curious as to how much it will cost to covert dollars to euros, in fees and bad exchange rates, and the easiest and/or least expensive way to do it. Say bringing $8,000 from US investment accounts monthly into a Spanish checking account.

Also, is it a good idea to use credit cards from US banks to buy things when living in Spain, I'm guessing that's an expensive way to covert dollars because of the euro exchange rate used or international transaction fees charged by the US bank? Are there any legal or regulatory pitfalls to having a credit card from a Spanish bank. Not using the credit cards to borrow, just to get rewards of some kind, pay it off each month.

I suppose a debit card tied to the Spanish checking account into which you've already exchanged dollars to euros could be used, but probably no rewards.

Thanks,
I read the replies and am confused. Seems like OP wants to access to $8k a month. He is thinking of converting it into euros and using a Spanish checking account. Not necessary at all. The easiest way is to simply use his CC or an ATM card (with no transaction/ATM fees reimbursed). Get Euros from the ATM for cash, otherwise credit cards. Cash management of his account from which he is drawing the $8K can be between US accounts. Use auto pay for the CC account. Same as on vacation. If the CC you use is a rewards CC of some sort, then you would still reap those rewards.
That's it.
The OP says he wants to bring it into a Spanish checking account. Can the OP pay, e.g., his or her rent and utilities other than by bank transfer?
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whodidntante
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Re: Dollars to Euros

Post by whodidntante »

Marseille07 wrote: Sat Jul 24, 2021 9:44 pm I often hear that the exchange rate at the ATM is bad, but you guys are saying otherwise.
It's typically very good. One thing to watch out for is dynamic currency conversion, where the ATM "offers" a terrible conversion rate for no benefit other than showing you familiar units on the screen. Never accept DCC. It's a much worse deal.
Marseille07
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Re: Dollars to Euros

Post by Marseille07 »

whodidntante wrote: Sun Jul 25, 2021 5:05 pm
Marseille07 wrote: Sat Jul 24, 2021 9:44 pm I often hear that the exchange rate at the ATM is bad, but you guys are saying otherwise.
It's typically very good. One thing to watch out for is dynamic currency conversion, where the ATM "offers" a terrible conversion rate for no benefit other than showing you familiar units on the screen. Never accept DCC. It's a much worse deal.
Thank you. I've definitely seen this when paying with CC, I don't recall seeing this at the ATM but will definitely look out for that.
CCD
Posts: 136
Joined: Wed Mar 09, 2016 9:17 am

Re: Dollars to Euros

Post by CCD »

For small amounts I'll just get Euro with a no fee ATM card like Schwab or Fidelity, IBRK charges $0.50 for ATM use, not a lot but not free. For larger amounts I buy Euro with IBRK and you get one free transfer a month so I do that to my local account in Europe. Names in the accounts have to match.
Topic Author
devich
Posts: 21
Joined: Fri Apr 30, 2021 8:32 pm

Re: Dollars to Euros

Post by devich »

EddyB wrote: Sun Jul 25, 2021 4:18 pm
Shallowpockets wrote: Sun Jul 25, 2021 1:17 pm
devich wrote: Sat Jul 24, 2021 9:27 pm Hi,

I'm curious as to how much it will cost to covert dollars to euros, in fees and bad exchange rates, and the easiest and/or least expensive way to do it. Say bringing $8,000 from US investment accounts monthly into a Spanish checking account.

Also, is it a good idea to use credit cards from US banks to buy things when living in Spain, I'm guessing that's an expensive way to covert dollars because of the euro exchange rate used or international transaction fees charged by the US bank? Are there any legal or regulatory pitfalls to having a credit card from a Spanish bank. Not using the credit cards to borrow, just to get rewards of some kind, pay it off each month.

I suppose a debit card tied to the Spanish checking account into which you've already exchanged dollars to euros could be used, but probably no rewards.

Thanks,
I read the replies and am confused. Seems like OP wants to access to $8k a month. He is thinking of converting it into euros and using a Spanish checking account. Not necessary at all. The easiest way is to simply use his CC or an ATM card (with no transaction/ATM fees reimbursed). Get Euros from the ATM for cash, otherwise credit cards. Cash management of his account from which he is drawing the $8K can be between US accounts. Use auto pay for the CC account. Same as on vacation. If the CC you use is a rewards CC of some sort, then you would still reap those rewards.
That's it.
The OP says he wants to bring it into a Spanish checking account. Can the OP pay, e.g., his or her rent and utilities other than by bank transfer?
OP here, it was just a hypothetical...somewhere I read it's best to keep investments in the US but have a local checking account. May be obsolete in this day and age. I would only use the Spanish checking account for things that typically one pays with a check or autopay from checking account, rent/mortgage, utilities, cable/internet/phone, and other things that might have a % fee for using a credit/debit card or a discount for cash/check. Thanks for the responses, learned a lot.
bberris
Posts: 2412
Joined: Sun Feb 20, 2011 8:44 am

Re: Dollars to Euros

Post by bberris »

Marseille07 wrote: Sun Jul 25, 2021 3:46 pm
rich126 wrote: Sun Jul 25, 2021 3:44 pm Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
Thanks, I've been asked this question and wasn't aware it's a trap & there's a clear answer as to which is better & why.
It's not just at stores. I've experienced 3 of 4 ATMs in Mexico ask if you want to do dynamic conversion (they don't call it that.) by giving you their US $ cost for pesos. You hit the cancel button and then you get pesos at the fair conversion rate.
sfnerd
Posts: 348
Joined: Tue Apr 08, 2014 1:16 am

Re: Dollars to Euros

Post by sfnerd »

Shallowpockets wrote: Sun Jul 25, 2021 1:17 pm
devich wrote: Sat Jul 24, 2021 9:27 pm Hi,

I'm curious as to how much it will cost to covert dollars to euros, in fees and bad exchange rates, and the easiest and/or least expensive way to do it. Say bringing $8,000 from US investment accounts monthly into a Spanish checking account.

Also, is it a good idea to use credit cards from US banks to buy things when living in Spain, I'm guessing that's an expensive way to covert dollars because of the euro exchange rate used or international transaction fees charged by the US bank? Are there any legal or regulatory pitfalls to having a credit card from a Spanish bank. Not using the credit cards to borrow, just to get rewards of some kind, pay it off each month.

I suppose a debit card tied to the Spanish checking account into which you've already exchanged dollars to euros could be used, but probably no rewards.

Thanks,
I read the replies and am confused. Seems like OP wants to access to $8k a month. He is thinking of converting it into euros and using a Spanish checking account. Not necessary at all. The easiest way is to simply use his CC or an ATM card (with no transaction/ATM fees reimbursed). Get Euros from the ATM for cash, otherwise credit cards. Cash management of his account from which he is drawing the $8K can be between US accounts. Use auto pay for the CC account. Same as on vacation. If the CC you use is a rewards CC of some sort, then you would still reap those rewards.
That's it.
This.

Also, Schwab is *awesome* for an international ATM card. Reimburses fees everywhere, great rate, and they can even ship you a card quickly if you lose it abroad (I live in Thailand and they've shipped to me here and in other countries).

Remember: don't tell your banks you've moved (use a US address wherever possible) and make sure to get multiple credit cards (with no foreign transaction fees) and ATM cards as backups. And, as other posters have mentioned, always tell the ATM to use the local currency, and your bank will convert at a good rate. Don't let the card terminal or the ATM ever do conversion to USD for you, as it will charge you a terrible rate.
sfnerd
Posts: 348
Joined: Tue Apr 08, 2014 1:16 am

Re: Dollars to Euros

Post by sfnerd »

bberris wrote: Mon Aug 02, 2021 7:06 am
Marseille07 wrote: Sun Jul 25, 2021 3:46 pm
rich126 wrote: Sun Jul 25, 2021 3:44 pm Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
Thanks, I've been asked this question and wasn't aware it's a trap & there's a clear answer as to which is better & why.
It's not just at stores. I've experienced 3 of 4 ATMs in Mexico ask if you want to do dynamic conversion (they don't call it that.) by giving you their US $ cost for pesos. You hit the cancel button and then you get pesos at the fair conversion rate.
Yes - it's an awful trap!
https://www.investopedia.com/dynamic-cu ... cy%20(CPC).
Toses1973
Posts: 1
Joined: Sun Aug 15, 2021 12:22 pm

Re: Dollars to Euros

Post by Toses1973 »

Hi, I´ve just registered to try & help you. I had an international career for over 20 years and returned to Spain in 2005. All my accounts (checking, savings, credit cards and investments were mainly, and still are, in the US. No problem with that, except that: 1) You have to inform the AEAT (spanish IRS) by March 31st of every year by filling Form 720. And 2) depending on your situation i.e. income, capital gains, etc... you may have (or not) to submit a tax return (IRPF) by June 30th of every year.

You will need to open a checking account (cuenta corriente) in Euros. It is almost mandatory, otherwise it will be too complicated. Look for a bank that charges no fees or commissions if you make periodic deposits and/or you receive international funds transfers.

I get Euros in three ways: 1) I use my US bank debit (ATM) card to withdraw cash from my US checking a/c and then, I deposit the cash into my spanish a/c. In the past, most ATM networks didn´t charge a fee. That has changed and these days very few banks offer withdrawals from non-spanish banks without charging a fee. Also, look for ATMs that offer you the option to choose between an amount in EUR or USD to debit your US a/c. Use always the amount in EUR. 2) For most expenses in Spain (and, in fact, in most countries when I travel to Europe, South America and even Asia and Australia) I use my US credit card. I´ve used VISA or MasterCard over the past 16 years & found out that they offer a very competitive exchange rate, very close to the spot rate of the day. Be sure to have a credit card that charges no fees for foreign transactions. 3) Should I need a larger amount in Euros (whatever the reason) I send an international wire transfer from my US a/c to my spanish EUR a/c. Again, the rate quoted by my US bank is very, competitive and the wire is free if I do it myself online.

Last comment: All of the above may depend on your particular status with your US bank. You may have heard of Citigold (Citibank), Premier (HSBC), Platinum (Bank of America), etc... If you are a high tier in one of those banks you end up paying much less in fees & commissions.

Feel free to ask additional questions although I will not provide very detailed responses for obvious reasons. Good luck !!
pasadena
Posts: 2336
Joined: Sat Jul 02, 2016 1:23 am
Location: PNW

Re: Dollars to Euros

Post by pasadena »

Marseille07 wrote: Sun Jul 25, 2021 3:51 pm
rich126 wrote: Sun Jul 25, 2021 3:49 pm
Marseille07 wrote: Sun Jul 25, 2021 3:46 pm
rich126 wrote: Sun Jul 25, 2021 3:44 pm Yeah, I agree. Generally the exchange rate on ccs is very good and a number of ccs have no foreign transaction fees. The only time you need to be careful are the stores that ask you if you want the charge in the local currency or dollars. You should always pick the local currency otherwise the exchange rate there will be very poor in most cases.

If an ATM fee is charged and not reimbursed then you want to get as much cash as possible since the fee is usually a fixed amount and doesn't increase with the amount of cash received.
Thanks, I've been asked this question and wasn't aware it's a trap & there's a clear answer as to which is better & why.
Here are several articles on this situation.
https://www.forbes.com/sites/geoffreymo ... 3c79713307
https://www.godsavethepoints.com/credit ... les-trick/
https://go.hfcu.org/blog/why-you-should ... ing-abroad

And they all kind of say the following -
When I request to be charged in the local currency, my card issuer will make the conversion for me when they process the charge; banks and credit unions typically get the best exchange rate for the day of the purchase, which they pass on to their cardholders.

However, if I elect to be charged in U.S. currency, a third party enters the transaction, an intermediary between the merchant and the card issuer that calculates the currency exchange while I’m waiting to sign my charge slip. The convenience of knowing that my purchase cost X U.S. dollars as I’m settling my bill comes with a cost: anywhere from 3% to 3.5% of my purchase. On top of this fee, the intermediary will slap me with an exchange rate that’s not as good as the one my card issuer will give me.
Thank you, very helpful. I think I was choosing USD previously, need to select local next time :-D
I confirm. Whenever you buy something abroad, or withdraw cash abroad, always choose to pay in the local currency (if you get the choice). As a general rule, you want to conversion to be done by your bank (or CC issuer), not by whatever specific system is used at the point of payment (the ATM or the point-of-sale system) as they will almost always use a worse rate, taking a cut there, and sometimes tack additional fees.

Same thing for exchanging money - avoid the exchange booths at the airport like the plague. Use an ATM or visit an actual bank.

Same thing with Paypal - pay in the merchant's currency - Paypal's exchange rate is normally not as good as your bank's.
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