Taking £3000 to Australia

[TW]Fox · 19 Dec 2010 at 20:59

So find me a relevent rate then?

You are obviously itching to pwn the thread with your Forex genius and go into a level of detail far in excess of anything the OP actually requires, so go for it.

Find me an accurate rate with which to appraise Friday's VISA Wholesale rate.

If we assume 2 days delivery then Wednesdays rate was 1.5743623564, is that ok for you? If it is then we can still see that the Visa Wholesale rate is good :confused:

dowie · 19 Dec 2010 at 21:07

[TW]Fox;18036827 said:
So find me a relevent rate then?

You are obviously itching to pwn the thread with your Forex genius and go into a level of detail far in excess of anything the OP actually requires, so go for it.

Not really I'm merely questioning something that appeared dubious at first and did indeed turn out to be. You've stated that xyz is *The best* and you've got no idea why or indeed whether it is.

Perhpas it is perhaps it isn't but for the OP's needs - he wants to spend 3 grand in Australia - he'd prob be better off using an fx broker and shifting the lot into an AUD bank account.

[TW]Fox · 19 Dec 2010 at 21:08

dowie said:
Not really I'm merely questioning something that appeared dubious at first and did indeed turn out to be. You've stated that xyz is *The best* and you've got no idea why or indeed whether it is.

Show me a better card.

Perhpas it is perhaps it isn't but for the OP's needs - he wants to spend 3 grand in Australia - he'd prob be better off using an fx broker and shifting the lot into an AUD bank account.

If you think that - great - demonstrate it with some figures. I've demonstrated the figures behind my opinion, you've done nothing but try and descredit my opinion. How about you help the OP by finding a cheaper and more convenient method than the one I've suggested?

You still refuse to comment on why you think that Visa rate is bad, btw :confused:

All you seem to be doing is mysteriously alluding to how much you know about Forex without actually bothering to share any of this knowledge in the thread to help the OP out. If you've got a BETTER solution than mine, please do explain it and demonstrate it, it might help the OP out.

dowie · 19 Dec 2010 at 21:15

[TW]Fox;18036870 said:
If you think that - great - demonstrate it with some figures. I've demonstrated the figures behind my opinion, you've done nothing but try and descredit my opinion.

I've highlighted silly comparisons that make no sense yes.

You still refuse to comment on why you think that Visa rate is bad, btw

I've not stated it is 'bad' -AFAIK it is a rate that is fixed the day before by visa, your purchases might then get charged by the retailer to your account on that day or maybe the next day or maybe the day after that - visa then use the rate they got the day before.

If you've got a BETTER solution than mine, please do explain it and demonstrate it, it might help the OP out.

Yep - open an AUD bank account, transfer cash via an fx broker.

[TW]Fox · 19 Dec 2010 at 21:17

dowie said:
Yep - open an AUD bank account, transfer cash via an fx broker.

Please show us how much in AUD he'd end up with in his AUD bank account (Which he'll need to open after setting up an Australian address first) after he'd done this.

It's going to need to be quite a saving to beat just pitching up at Melbourne Tullamarine with a credit card, slipping it into the ATM, and withdrawing cash/spending on the card as and when you need it.

dowie · 19 Dec 2010 at 21:25

If you've got the free time to work it all out then go for it - get some quotes from various FX brokerages transfer your fictional £3000 then estimate the various withdraws you'd make over the next few months - check the visa rate, add some interest onto your withdrawals - perhaps decide that some of the purchases don't hit your account for a few days etc... etc..

If GBP strengthens over the next few months then perhaps you'll be better off with your method however it would seem prudent, if you're looking to spend the 3 grand in AUD and will then be earning AUD, to simply transfer it now and maintain an AUD bank account.

dustofnations · 19 Dec 2010 at 21:51

[TW]Fox;18036542 said:
Not really, no.

No it wont, because as of 1st November 2010 Nationwide withdrew the low-fee foreign spending on debit cards. This used to be the best option (and indeed is the option I took when I did Aus), but it is not any more.

The cost of withdrawing cash and paying it off at the statement date on a Halifax clarity is no more than Visa wholesale + 1ish%.

The cost of withdrawing cash from a Nationwide debit card is Visa Wholesale + 2% + £1 withdraw charge.

Please can you explain how the Nationwide debit card is cheaper?

My comparison makes perfect sense - it is the rate given for a transaction made TODAY. Buy something in Australia on your Visa card *today* and that is the rate you will be charged.

Joe Public cannot acheive a better rate with less hassle than the Visa Wholesale rate. You can go to a lot of trouble to pre order cash for delivery in the future at a set rate, but thats hardly the same thing at all, and is hedging anyway.

Exchange rate fluctuations go up and down and are hardly a 'worry'.

I am amazed at your continued criticism of my suggested course of action.

Here is me suggesting a method of carrying money which involves simply using a cashpoint as normal and costs only 1% on top of the visa wholesale rate and you've dedicated several posts to rubbishing it whilst demonstrating you don't really know the facts.

I bet you wont be getting the same rate as Visa Wholesale by using an FXBroker and sending £3k - they'll want some profit!

Visa still make a bid/offer spread profit. You should be able to get a better rate currenyfair.com, but I wouldn't dispute this is a reasonable way for such a small amount of money. In effect Visa are acting as the FX Broker.

Incidentally I wouldn't bother attempting to wait for the exchange rate to change (as noted by [TW]Fox). It is a highly volatile "market" and is considered speculative (i.e if you were an investor you would never be involved in money market spread betting or futures etc)

dustofnations · 19 Dec 2010 at 21:54

Smithy · 19 Dec 2010 at 21:58

Just had a thought... isn't there a way I can take advantage of the Halifax Clarity card's no fees to buy AUD from a local currency exchanger in Australia?

I'd pay the currency exchange X amount of AUD using my credit card (of which I'd get a decent exchange rate), the equivelent GBP gets added as balance to the credit card (it would just appear as one single, big transaction), I then use my current account to pay off the balance, the exchange then pays the X amount of AUD in to my Australian bank account.

Am I missing something here?

Strife212 · 19 Dec 2010 at 22:09

3k is only about [----] thick, just take it in notes :cool:

[TW]Fox · 19 Dec 2010 at 22:15

Smithy said:
Just had a thought... isn't there a way I can take advantage of the Halifax Clarity card's no fees to buy AUD from a local currency exchanger in Australia?

I'd pay the currency exchange X amount of AUD using my credit card (of which I'd get a decent exchange rate), the equivelent GBP gets added as balance to the credit card, I then use my current account to pay off the balance, the exchange then pays the X amount of AUD in to my Australian bank account.

Am I missing something here?

I think that would work - the usual catch when buying currency on a credit card is that it gets charged as a cash advance at huge interest but of course the Clarity doesnt charge enormous interest for that.

Thing is though I doubt the rate you'd get walking in off the high street would be any better, probably worse, than the Visa Wholesale rate you'd get using a cash machine with your card?

megakid · 19 Dec 2010 at 22:20

Smithy said:
Hi mate. Sorry, I didn't follow that... what exactly is ozforex? Do they act as a middle man for the transfer from one account to another?

Yep they're just a middle man to make the transfer and charge you just $10 for the service. All works online (except for a single phone call to verify you are who you say you are - they call you).

www.ozforex.com.au - they specialize in UK/OZ transfers so should suit what you want to do.

[TW]Fox · 19 Dec 2010 at 22:26

They are only offering 1.5614 mind, though thats a good rate compared to most. Not as good as Visa rate though.

dustofnations · 19 Dec 2010 at 22:33

And if you are paying an upfront fee of $10, then you are losing out doubly.. a worse FX rate and a fee.

Smithy · 19 Dec 2010 at 22:38

[TW]Fox;18037234 said:
I think that would work - the usual catch when buying currency on a credit card is that it gets charged as a cash advance at huge interest but of course the Clarity doesnt charge enormous interest for that.

Thing is though I doubt the rate you'd get walking in off the high street would be any better, probably worse, than the Visa Wholesale rate you'd get using a cash machine with your card?

How would that work then? I was only musing on the idea and haven't thought it through. Essentially all it is is transferring AUD from my UK credit card account to my Australian current account. My thinking was that it would almost be like buying a fictional item from a shop for X AUD (the equivalent of £3000) using my credit card, then the shop taking the X AUD out of their till (in place of the fictional item) and giving it to me so that I may pay it in to my Australian account. As far as Halifax are concerned, I've just bought something from a shop for X AUD and so it appears as a normal transaction.

The only exchange rate I'd be concerned with then is the Visa Wholesale Rate applied to the credit card for making the X AUD purchase for the fictional item. I'd then pay the £3000 balance off using my UK current account.

Probably talking ******** here by the way. You may have to explain how you initially interpreted my idea.

[TW]Fox · 19 Dec 2010 at 22:48

It wont appear as a normal transaction (Well, probably not) because credit card companies class currency purchase as cash, not as a purchase.

Therefore you may as well simply withdraw money from a cashpoint and deposit it into your AU bank account.

dustofnations · 19 Dec 2010 at 22:53

Cash withdrawals on Credit Cards are usually big no-nos unless you want to get hit with a massive percentage fee (often 5%+).

SMN · 19 Dec 2010 at 23:06

As someone in Australia at the moment on a bit of a tour, What i did was go to Thomas Cook - you can get the Prepaid MasterCard there.

Basically, a fully usable MasterCard which they'll load for you with however much you want when you buy it. You can also top it up online. Whenever you pay using it in Aus, you just say "Credit, PIN" (you'll know what this means after a few days!) and you can use it same as your standard chip/pin card. Same applies for ATM withdrawals; I seem to remember a small withdrawal charge so do this as minimal as possible

[TW]Fox · 19 Dec 2010 at 23:22

dustofnations said:
Cash withdrawals on Credit Cards are usually big no-nos unless you want to get hit with a massive percentage fee (often 5%+).

SMN said:
As someone in Australia at the moment on a bit of a tour, What i did was go to Thomas Cook - you can get the Prepaid MasterCard there.

Please read the thread before replying

I have already explained:

a) Which credit card you can take which WONT hit you with a massive fee, and works out very cost effective for cash withdrawls

b) Why a Thomas Cook prepaid mastercard is a massive ripoff.

Smithy · 19 Dec 2010 at 23:53

[TW]Fox;18037301 said:
They are only offering 1.5614 mind, though thats a good rate compared to most. Not as good as Visa rate though.

Does that translate to much of a difference with £3000? It may be worth doing for peace of mind; only carrying one card around, having all my money in a single Australian bank account in AUD...