[Island Moose]

I'm sorry, I have searched the previous posts, but I can't find one that answers this question:

I am about to transfer a considerable sum from Canada to NZ, have already set-up a Westpac account. I want the best rate, but I value the worry-free nature of bank wire transfers (versus online trading companies). Is this a good way to get the money to NZ and where can I monitor the daily rate and/or learn about fees? What must I do to avoid losing money in the process?

Thank you all,


Moose (John)

[Ana&Steve]

I know there are several threads on the topic, but you are right, it's hard to get them to come up:confused: Try " currency exchange ", that gave me a few valid hits. I'm sure the experts will respond by tonight or tomorrow, they must be out having a great weekend!:)
Ana

[IanW99]

We use ASB to transfer funds from the UK and exchange rate has always been very good (probably not the best, but pretty safe).

One piece of advice if you want to use the banks to transfer funds is to check which type of exchange rate they use for the transfer.

AFAIK, there are two types Tourist and Business and you do NOT want tourist.

Others on the forum have used online trading companies with good results e.g. with www.xe.com (http://www.xe.com/)

I use x-rates (http://www.x-rates.com/) for following the exchange rate as it shows a nice graph.

Also, it is possible to transfer money to a NZ account but keep it in a foreign currency which means you could exchange it at a suitable time - ask your bank for details.

Ian

[Sam B]

We just used XEtrade (see above) to bring the money for our house over. If you're bringing a large amount, then I'm sure it's worth the extra hassle because a small difference in exchange rate can mean quite a lot more money. They were very helpful and phoned me several times to help me in response to emails that I sent. I'm pretty sure they offer a better exchange rate than any bank.

[Howie]

Yes XE is a pain to set up, but well worth it for the exchange rate. I used them to transfer money to NZ and now find it the easiest way to transfer money from NZ to Canada and the US. I now use them a lot to send small amounts for birthdays, etc. Check them out.

[Island Moose]

Thank you for your replies,

I noted that Westpac NZ is offering 1.21698 while XE.com is offering 1.21847, a difference of .002 cents/dollar or $200/$100K.

I will watch the numbers carefully, I didn't realize you could leave the money in Canadian funds even after transferring. This will reduce some of the urgency to find a good rate.

John

[tiefchord]

I think you're looking at mid-market rates, honestly. Unless you're transfering in the millions, you won't be offered those rates. I highly suggest atleast setting up the XETrade requirements ahead of time (which aren't a big deal) - as in my experience no bank has ever come close. Also, if you even had the possibility, do NOT transfer CAD -> CAD (held within an NZ institution somehow). That is setting yourself up for some absolutely royal pain down the line. Additionally, you'd have to have an account with Westpac that was opened as an account in CAD.

Call up Westpac and ask them over the phone: "What is your buy rate on CAD?"

This is an arena where big surprises in what rate is said/advertised and what is actually offered when the transfer happens, by the transferring entity, can seriously differ. That's one reason I personally used XE - they were upfront about every cost, period, whilst the banks were also upfront with fees, but a total rip-off when it came to rates.

[Super_BQ]

Hi Island Moose,

I myself am a Canuck from BC.

From the point of view of exchanging $ from 1 currency to another, my best advice is to don't do it unless you have to. Depsite being in NZ for almost a decade, i've never had the real urge to play the currency exchange game. But if you think there's gain in doing so, you can take the gamble.

Almost all banks offer 'offshore accounts' - I have no idea why they call a foreign currency account offshore because strictly speaking, offshore really means the funds are held overseas. Anyways, the exchange rate you see on TV is typically the open market rate by those that exclusively trade currencies. Unfortunately, banks are not in the game of speculating currencies because it's far more profitable to tack on 2% difference (which is called the spread) than to try and bet on which way the currencies will move. Anotherwords, in order to get the rates shown on TV you have to be a "specialist" or a person that has business based on currencies. Take wheat for example, it's a commodity widely traded and in order to get the best rate, you have to be a specialist or simply "a major wheat farmer". But take a normal person that wants a container load of wheat, they won't get the best rate.

Speaking of currencies, that is how the famous Barrings Bank of London went bankrupt. An abuse of a key executative accountant was able to bet the whole bank on the Japanese Yen - hoping that the yen would devalue, it didn't and forced a margin call as it went the other way.

The NZ$ is quite strong and for good reason. People like yourself that want to bring huge amounts of $ to NZ because at 8% term deposits ; hell that's better than what most NZ managed funds can do (less their management fees). Which makes me question how Kiwi Saver could beat 8% in the short term?

As more people bring $ in NZ (ie Shania Twain), this gives the banks more power to lend it out to the kiwis that likes to pay 9 or 10% mortgage on their house. It's the classic case of the rich getting richer.

Wiring funds between Canada and NZ is safe and not an issue in terms of security. Though you can bet that the CRA will know about it. Why?

Ever wonder why when visiting Canada the visitors declaration card always asks if you're bringing over more than $10,000 of currency in? Primarily because of anti-laundering though not illegal - just have to fill out the proper forms upon arrival. But when you wire money overseas, it's the BANKS that automatically fill in the form. So eitherway you bring a suitcase full on the plane or wire it - it makes no difference as the gov't will know.

BQ

[Island Moose]

Hmmm....unless I'm completely out of it, tiefchord and Super BQ, are you suggesting the opposite approach? "From the point of view of exchanging $ from 1 currency to another, my best advice is to don't do it unless you have to" & "...do NOT transfer CAD -> CAD"

Westpac has both a regular account and a foreign currency account they are suggesting. The Conversion rates I quoted are those the bank is telling me they would give me today...I will clarify with them...get it in writing so to speak.

Interesting, I will have to look more closely into this...I don;t want to play the markets, far from it...I just want to get down there with as much $$ as I can for a house deposit.

[zardell]

ASB London deal in mid rate transfers (the same rate that you'll see on www.xe.com for example) for moving UK sterling to NZ.

Is there an ASB you could contact John ?

May be worth a shot and you can always transfer your funds from ASB NZ to any bank you like once you're in NZ.

Have PM'd you.

Julie

xx

[tiefchord]

I can almost guarantee you that there is not a single bank that will offer you a better rate than XE and the like are capable of. Banks are in the business of making money - as is XE/CustomHouse etc - but the latter are making it up in volume. I've shopped around locally, both recently, and previously in the past, and most banks have either hidden fees or 2-5%+ take in their advertised rates.

I am not suggesting you do not transfer your money - I am suggesting that you use a dedicated FX place to do it. XE haven't screwed over anyone yet - and I didn't have a single issue with them when transfering over money a while back ago. In fact, they were more interested, security-wise, in my motivations rather than trying to speed things along.

Also - consider that a bank cannot commit to any rate at all. The rates are varying by the second. They couldn't even put it down in writing - which is where the profit-margin creeps in when you actually go to initiate the transfer with them.