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TransferWise - Information (Tips and Tricks)

  1. gostang9 Sep 5, 2018

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    Hi all,

    I've seen advice posted several times on OF to use TransferWise rather than PayPal for sending money internationally. I resisted until recently and used only PP F&F. However, as I've come to realize the major cost advantage from buying in other currencies (ie: GBP currently devalued significantly), I decided to sign up.

    First impression: WOW! My wife and I both earn USD but live in Canada and spend mostly CAD. Therefore we convert currency regularly and over the years have tried many methods with varying success at getting to the spot FX rate. Below is our typical experience:

    +3.7% with PayPal (ACH withdrawl from connected USD account and direct deposit into CAD account, takes 2 to 5 days to complete)

    +2.2% at local bank (deposit check from US account into USD account at our CAD bank, shows up instantly)

    +1.8% with XE Trade account (ACH withdrawal from connected USD account and direct deposit into CAD account, takes ~3 to 5 days to complete transfer)

    +0.8% with TransferWise (ACH withdrawal from connected USD account via re-directed login and direct deposit into CAD account, takes only ~ 20 hours to complete transfer)

    +0.3% with Norbert's Gambit in trading account (deposit check from US account into USD trading account at CAD bank, buy US stock & sell CAD stock, make phone call to journal the shares, shows up within 1 day)

    TransferWise is by far the simplest, most flexible and quickest option while getting very close to the Spot FX rate. They charge a fixed rate that is made very clear and visible before you make the transfer. This rate does increase as you go up in the total value of currency. Transferwise also allows you to create multiple FX accounts and convert and hold within various currencies.

    If anyone has not created a TransferWise account and is considering sending money from one currency to another (your own account or someone else's) I would strongly suggest signing up sooner rather than later.

    EDIT: If you're not already a member of TransferWise and would like to join, here's a link to sign up.
     
    Edited Sep 5, 2018
  2. gostang9 Sep 5, 2018

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    Question for other users, how can you use foreign currency in your TransferWise account to pay for goods at a store in another country?

    Example: I have converted USD to GBP in my TransferWise account (at a good rate as explained in my OP). I know I can send these GBP funds to a UK user (or TransferWise user with GBP fund account activated). However, is there a way for me to withdraw those funds somehow at a UK bank and get GBP direct from my account?
     
  3. Deafboy His Holiness Puer Surdus Sep 5, 2018

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    I've used TransferWise a few times and becoming a big fan. None regarded watch buying.
    - Paid for services to a Indian travel company. Funds deposited directly into the company's bank account.
    - Transferred amounts from my US bank account to my Canadian bank account

    The fee is about the amount you mentioned above.
    I don't have Transferwise foreign accounts so don't know how to answer your query.
     
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  4. albertob Sep 5, 2018

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    I also use TransferWise quite a lot.

    It is marvelous and it has helped me to reduce the fees consistently. I bought a watch located in UK paying in GBP, but My bank account is in euro. Was immediate and fantastic. The watch owner received the money in 40 seconds.

    Going back to your question. I use a blend of different fintech tools.

    I opened an account with Revolut. Here I can store multiple currencies and I do the exchanges via TransferWise (or via revolut itself)

    Cheers
     
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  5. gostang9 Sep 5, 2018

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    I wonder if a UK based watch retailer might not accept a bank transfer for a watch valued at ~5000 GBP? If a travel company did, it might not be out of the realm of possibility...?
     
  6. gostang9 Sep 5, 2018

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    I just went to their website signed up to be an early participant from the US...
    Revolut.JPG
     
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  7. MikeMan2727 Sep 5, 2018

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    I completely agree. I have been using Transferwise for a long time now and it is my preferred method for receiving money on these forums. I have had several international deals here and it has been easy for both buyer and seller.

    My favorite aspect is that you can input what the recipient will get and they will get just that - no more, no less.
     
  8. gostang9 Sep 5, 2018

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    I see what you did there... well played! ;)
     
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  9. MikeMan2727 Sep 5, 2018

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    :D
     
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  10. gostang9 Sep 5, 2018

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    I could edit my OP and add my own link... ::stirthepot::
     
  11. ext1 Sep 5, 2018

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    Really interested in this Transferwise thing too....does the recipient need to have Transferwise account? I assume I can connect this with cards and bank accounts but what are the receiving options for the recipient?
     
  12. gostang9 Sep 5, 2018

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    I don't believe they need to be a TransferWise member. It allows you to send to someone as long as you know their IBAN and bank information.

    Hopefully someone who has used it to send money will confirm...
     
  13. ext1 Sep 5, 2018

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    Huh, that's amazing. So I can basically wire people using card/my account? That would be a great option since sellers prefer wire. Yep please would be great if someone that has used it can confirm
     
  14. albertob Sep 5, 2018

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    Yes there is no need for another account.

    You just need one TransferWise account and the IBAN of the recipient :)
     
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  15. ext1 Sep 5, 2018

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    Thank you! Will try it out when I need to transfer funds next time around. :thumbsup:
     
  16. Deafboy His Holiness Puer Surdus Sep 5, 2018

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    In fact, they wanted a wire transfer ($$) but I convinced them to use Transferwise.
    It was my first time too. So both me and the travel company live on the edge (me sending a rather large amount of non-recoverable funds using a new transfer method to a tiny Indian company, and they receiving funds using a new source) :D
     
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  17. albertob Sep 5, 2018

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    I transferred up to 5k euro with TransferWise and it was flawless and ridiculous fees.

    My bank would have charged me 4%
     
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  18. jmazpiazu Sep 5, 2018

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    Correct. You can wire funds to non transferwise account holders. You can use both your credit card or wire them directly from your bank account.

    I have been using Transferwise for quite a long time now, mostly to send money from my account in the EU to the US and I could not be happier with the service they provide. You will save a significant amount in fees compared to traditional banks.
     
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  19. ext1 Sep 5, 2018

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    When someone wants a wire transfer, can't they indistinguish anyway if I send them with TW? Or does the received fund say something about TW?
     
  20. jmazpiazu Sep 5, 2018

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    No. The recipient will only get the following information: name of the person who wired the money, amount of the wire and a 14 digit number.

    No mention to Transferwise at all.
     
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