Hi folks,

Please can anyone recommend the most cost-effective way to transfer around 10-12,000 Euros from a Spanish bank (La Caixa) to the UK. I have a resident/NIE-validated account with IBAN/BIC codes. Transferring money directly from La Caixa into a UK bank would incur unfavorable rates and commission. La Caixa’s rate for SEPA payments with full data identification is 0.40% of the transaction amount. I have a Barclays Euro Account too.

There seem to be two main options:

PAYPAL

Paypal say: “As a buyer, we will not charge you to use PayPal unless it involves currency conversion? so this should be:

La Caixa (incurring payment for SEPA) -> Paypal account in euros -> Barclays Euro Account in UK -> Currency Club (or similar) to transfer euros to GBP. 

10,000 euros La Caixa ? 40 euros (La Caixa SEPA payment comission) = 9,960 euros converted into GBP via Currency Club Buy Back service: ?8,369.75

OR

TRANSFERWISE

10,000 euros - 40 euro commission = 9,960 converted by Transferwise = ?8,486.

Are these calculations correct?

Another site recommends using an app such as Azimo, O2 Wallet or Barclay’s Pingit or a P2P/Peer-to-Peer site like Currency Fair but I don?t know anything about these options.

Your advice and/or suggestions would be much appreciated!

I use TORfx to transfer currency based on very low commission rates, good exchange rates and speed of transfer. I recently saw a table quoting PAYPAL as one of the most expensive options.

Hola Rob, Many thanks for your response, which is really helpful. I’ll look into that. All the best!

Hola - they will require you to setup a client account to comply with money laundering regs etc but I have used them for 2-3 years and always found them excellent.

http://www.torfx.com/

We use currencies direct (based near San Pedro).. but do all of Spain as all done by email/phone.
I have used them for UK to Spain, you would have to check their rates the other way.
No commission, but it is built into the rate they give you.

Likewise, Hi Fx have a higher rate, but charge a flat fee of around Eu10 for the transfer?

Both good options.

Well OK guys things change…........

Today I have had a ‘run-in’ with TORFX who told me they had to reverify me as a client - OK I accept regulations/anti money laundering blah blah…........so I scanned some documents and sent them - they asked me to rescan at higher resolution as they were not clear…........Ok 2nd time, but still not acceptable. I do not want to post original private documents so now we have a stand off or rather we don’t because I will not trade with them again.

Now, as I said, I understand the need for regs BUT - have I become a money laundering terrorist since they first accepted me - NO and anyway I am not sending them suitcases full of used Bin Ladens (500? notes) I am transfering them money from a mainstream UK bank. I thought the only major checks were at the point of entry of any cash (remember that its virtually now banned for all transactions anyway, didn’t know that well it’s true) into the system - so what is their problem.

Anyway their origins benefits (for me) are now not so strong as Lloyds UK will now online transfer sterling to Lloyds Bank Int Spain to arrive in Euros at competitive rates and in the same century. I assume Barclays and Santander (banks in both UK/Spain) also have good arrangements.

So there it is rant over - do your research and make your own decisions on what’s best for you, as I intend to do.

Pity life is so complicated - remember how lucky you are you other (OK most) Europeans to have the Euro in your home countries - what - the Euro crisis? No that’s over, isn’t it?

Si Rob.. sooo annoying! We are still using Currencies Direct for one off occasional transfers, but someone I met who is an Ex employee (and now with Hi FX) told me they changed their policy recently. At first we were charged a ‘fixed transfer fee’ per transaction - 10GBP (which infact they waived - I think they wanted our business!).. but now this fee (which actually costs any/all companies 8.75GBP - but I’m not going to quibble about 1.25GBP)... is now built into the exchange rate…
But they are still slightly better than my bank in the UK who charge 9GBP as a flat fee for a SEPA payment. However, their rates are not quite as good as CDirect, so we still use them.
I have not been in touch with Hi FX as I don’t want to go through the whole registration thing again.

Hope you get it sorted Robi…

Well I am looking for a new company - and Currencies Direct are on my list. It seems that being able to visit an office is very useful for ID verification etc and they have an office near me.

I just checked with Lloyds Bank who now offer an easy online transfer service but what a rip off - around 2 points down plus transaction fees - anybody using banks for this service must like throwing their money away…........

Opened an account with Currencies Direct - very easy to do, and have done my first trade and was pleased with their efficient service. Didn’t pay a commission but I think that might be applicable for some low amount deals. However, I tend to try to accumulate sterling and move it in larger amounts and then get a better deal.