From time to time we perform BER Rate Checks to ensure the advertised rates for Banks and Brokers are accurate.
The below check was run for ANZ Internet Banking International Money Transfers (IMT) Rates (fx rates advertised at anz.com) on 28/04/2015 and 4/5/2015 (AUD exchange rates).
The rates on both dates and for all currencies were worse than those advertised by ANZ for IMT.
Here at BER we are very keen on promoting Exchange Rate Margin and Fee transparency. Where possible we publish the publicly available bank and fx vendor exchange rates advertised on their publicly accessible websites and any incorrect rates would affect the vendor’s positions in the BER comparison table.
Some customers have been reporting that the exchange rates for International Money Transfers published by their Financial Institutions on their websites are better than those available to their customers via Internet Banking.
We came across an article in The Australian Financial Review today on an interesting experiment of splitting a $200K AUD->USD transfer into two, with half sent via OzForex and the other half by one of the ‘big four’ Australian banks on the same day to compare what arrives at the other end.
The results are illuminating….!
If you have ever converted currencies or transferred money overseas, you may have been shocked to discover how much you were charged by your friendly bank to move your money.
Recently, a friend was preparing to transfer $200K overseas. I asked him if he would split the transaction into two lots, in order to try OzForex.
After signing up to their online platform, he transferred $100K through one of Australia’s big four banks and the other $100K through OzForex.
CurrencyFair is the best way to exchange currency and send funds to bank accounts worldwide. Our unique, new peer-to-peer marketplace ensures big savings on exchange rates and fees, and puts YOU back in control. There’s now an efficient and safe alternative to ridiculous bank and broker charges.
CurrencyFair is an online currency exchange market place. The market place is peer-to-peer, with the ability for CurrencyFair to supply liquidity. CurrencyFair is headquartered in Ireland with employees in UK, Australia and Poland.
There are a number of cost components to making and receiving international payments, most of which are far from transparent to customers:
Currency conversion rates : Banks charge huge margins for currency conversion to the majority of businesses and individuals. They tend to fix rates once a day and therefore need to incorporate enough margin to protect against intraday rate volatility.
In addition, the level of price discrimination is extortionate – they get away with it because they can; businesses and consumers have been kept apathetic to using better alternatives.
Correspondent bank fees : These relate to the network of banking relationships that are utilised to complete an international transfer. Each correspondent bank skims a fee of the transferred amount for simply acting as link in the payment chain.
Customers are rarely made aware in advance as to how many correspondent banks are in the chain and what they will charge.