Best way to transfer money from Germany to Thailand

[Peter Denis]

8 hours ago, GrandPapillon said:

thanks for the nice explanation, got it

Thanks, and I now also did PM you a Guideline document on TransferWise (now WISE) and how to get hold of the evidence that transfers you did from a foreign to a Thai bank-account originated from abroad (and this irrespective which method - TW or other - you are using).

[tgw]

On 3/1/2021 at 6:11 PM, GrandPapillon said:

ah, when I use "Monthly expenses" for the label, it's a local transfer and I get hit with a much better rate than the advertised interbank rates or BoT rates

 

I'm not sure we are talking about the same thing, the interbank rate is usually the best rate at any time.

[stat]

On 3/1/2021 at 1:16 PM, HighPriority said:

Why don’t YOU do the transfer and get back to us ?

Because I am not in Thailand ...

[stat]

1 hour ago, tgw said:

 

I'm not sure we are talking about the same thing, the interbank rate is usually the best rate at any time.

Strictly speaking there is no such thing as a F/X interbank rate. There is a market rate in pips that changes constantly. Many participants claim interbank rates, however there is no "worldwide" interbank f/x rate. ECB has other rates then bank of Thailand etc. Usually what most people mean is the rate that is stated just once a day without spreads.

 

Best exchange would be if Interactive Brokers offered Thai Baht trading.

 

https://www.interactivebrokers.eu/de/index.php?f=796

 

I have been pestering them for months but they wont do it.

[GrandPapillon]

3 hours ago, stat said:

Strictly speaking there is no such thing as a F/X interbank rate. There is a market rate in pips that changes constantly. Many participants claim interbank rates, however there is no "worldwide" interbank f/x rate. ECB has other rates then bank of Thailand etc. Usually what most people mean is the rate that is stated just once a day without spreads.

 

Best exchange would be if Interactive Brokers offered Thai Baht trading.

 

https://www.interactivebrokers.eu/de/index.php?f=796

 

I have been pestering them for months but they wont do it.

well put, exchange rates work in spread silo

[Peter Denis]

11 hours ago, stat said:

Strictly speaking there is no such thing as a F/X interbank rate. There is a market rate in pips that changes constantly.

...

You are correct that there is no such thing as a Worldwide standardized mid-market exchange rate.

But the variations between the mid-market exchange rates are very very small, as they all use approx the same method to calculate it (i.e. the median rate between current selling/buying rates of a basket of banks).  There will of course also be variation due to the frequency of updates (often approx once a minute), so comparison between the mid-exchange rates as calcalculated by different organizations should be done at exactly same moment, as a couple of seconds later the rates might have been updated already.

TransferWise uses the mid-exchange rate published by Reuters, which updates it in real time while the trading market is open.

> https://transferwise.com/gb/mid-market-rate

[tgw]

19 hours ago, stat said:

Strictly speaking there is no such thing as a F/X interbank rate. There is a market rate in pips that changes constantly. Many participants claim interbank rates, however there is no "worldwide" interbank f/x rate. ECB has other rates then bank of Thailand etc. Usually what most people mean is the rate that is stated just once a day without spreads.

 

Best exchange would be if Interactive Brokers offered Thai Baht trading.

 

https://www.interactivebrokers.eu/de/index.php?f=796

 

I have been pestering them for months but they wont do it.

 

yes, I mean FX spot +/- spread is the interbank rate, and that gets applied to incoming wires, possibly at a fixed time per day or several times per day.

 

I worked on the FX settlement rates for a large credit card company once (from the bank side), and it was just pure fraud. they sampled the rates 6 to 8 times par day, and then applied the worst rate to payments. disgusting.

 

Edited March 3, 2021 by tgw

[GrandPapillon]

7 hours ago, tgw said:

 

yes, I mean FX spot +/- spread is the interbank rate, and that gets applied to incoming wires, possibly at a fixed time per day or several times per day.

 

I worked on the FX settlement rates for a large credit card company once (from the bank side), and it was just pure fraud. they sampled the rates 6 to 8 times par day, and then applied the worst rate to payments. disgusting.

 

hey banks got to make some money ????

[GrandPapillon]

did a WISE transfer this morning, and it was sent in less than 60sec today, nice

 

local transfer from KBANK as usual,

[Peter Denis]

7 hours ago, GrandPapillon said:

did a WISE transfer this morning, and it was sent in less than 60sec today, nice

 

local transfer from KBANK as usual,

When you need proof that the transfer originated from abroad (which is required when using the Monthly Income Transfer method to meet Immigration financial requirements), let me know and I will PM you a Guideline document on how to get hold of that evidence.

[GrandPapillon]

8 hours ago, Peter Denis said:

When you need proof that the transfer originated from abroad (which is required when using the Monthly Income Transfer method to meet Immigration financial requirements), let me know and I will PM you a Guideline document on how to get hold of that evidence.

I think you did send that document in PM, thanks. But not for my case, don't need the ITT flag for my transfer.

[Pattaya80]

Attention Peter

I would appreciate the information you refer to regarding evidence from transferwise to show IO evidence of foreign transfer

I'm new here and already sent my 800,000 to k bank but now I'm worried when i apply for non o

It will be difficult showing it was from BOA in USA

HOPEFULLY u see this 

[Peter Denis]

3 hours ago, Pattaya80 said:

Attention Peter

I would appreciate the information you refer to regarding evidence from transferwise to show IO evidence of foreign transfer

I'm new here and already sent my 800,000 to k bank but now I'm worried when i apply for non o

It will be difficult showing it was from BOA in USA

HOPEFULLY u see this 

Hi Pattyaya80,

I did PM you the requested Guideline document, and you are welcome.

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[GrandPapillon]

On 3/2/2021 at 8:20 AM, stat said:

Strictly speaking there is no such thing as a F/X interbank rate. There is a market rate in pips that changes constantly. Many participants claim interbank rates, however there is no "worldwide" interbank f/x rate. ECB has other rates then bank of Thailand etc. Usually what most people mean is the rate that is stated just once a day without spreads.

 

Best exchange would be if Interactive Brokers offered Thai Baht trading.

 

https://www.interactivebrokers.eu/de/index.php?f=796

 

I have been pestering them for months but they wont do it.

you could technically buy THB/USD Swap within 2 or 3 days of their maturity, that would be very close to a spot rate, and lock-in the THB cost of your transfer

[stat]

On 3/3/2021 at 9:35 AM, tgw said:

 

 

 

1 hour ago, GrandPapillon said:

you could technically buy THB/USD Swap within 2 or 3 days of their maturity, that would be very close to a spot rate, and lock-in the THB cost of your transfer

 

Interesting idea! But I cannot transfer the actual Baht amount out if IB to my knowledge.

 

I can hedge currency changes though, thanks!

 

https://www.interactivebrokers.com/en/index.php?f=759

 

 

[GrandPapillon]

13 hours ago, stat said:

 

 

Interesting idea! But I cannot transfer the actual Baht amount out if IB to my knowledge.

 

I can hedge currency changes though, thanks!

 

https://www.interactivebrokers.com/en/index.php?f=759

 

 

yes, you would hold the SWAP of the opposite trade while doing your transfer, and see what kind of rates you got, and choose to exit the SWAP when you feel you got the best rates

 

You would be long USD in the SWAP, and short USD when doing the transfer

 

make sure to check the maths to make sure there is no asymmetry in the deal, I am doing this on the top of my head when I used to do it 10 years ago, but there is a lot of small details you need to check. Probably will need a spreadsheet to keep track of everything ????

[stat]

1 hour ago, GrandPapillon said:

yes, you would hold the SWAP of the opposite trade while doing your transfer, and see what kind of rates you got, and choose to exit the SWAP when you feel you got the best rates

 

You would be long USD in the SWAP, and short USD when doing the transfer

 

make sure to check the maths to make sure there is no asymmetry in the deal, I am doing this on the top of my head when I used to do it 10 years ago, but there is a lot of small details you need to check. Probably will need a spreadsheet to keep track of everything ????

 

Its more of a hedge or f/x speculation then it is to minimize my fees to my understanding, but many thanks! Its very helpful if I want to lock in rates but who I am to know where the rates are heading...

 

 

[GrandPapillon]

the speculation means you could actually improve the FX rates, if you have a feeling that rates are going one way or another, but you absolutely need to do a transfer now and you don't have the option to wait,

 

for example, when I was expecting the THB to ease, yet had to do transfer with expensive THB immediately, I would use those instruments to basically buy time and improve my future FX rates now ????

Edited March 6, 2021 by GrandPapillon

[EricTh]

On 2/28/2021 at 12:33 AM, stat said:

Guys thanks for your answers! Examples of actual transferal would help a lot ! Thanks!

 

Test 25 Feb         800 €                             Loss  in € 30000Baht               Markup over ECB rate ECB rate loss in percentage Fees €   800€       Bangkok Bank TT Morning 36,115000   2,0158% 13,84   2,282094   ECB RATE   Bangkok Bank TT Noon 36,220000   1,7310% 13,80   13,847740   36,858   Bangkok Bank TT Evening 36,115000   2,0158% 13,84   16,126757       Bangkok Bank Banknotes   35,820000   2,8162% 0,00   22,529709       Mastercard     36,425759   1,1727% 6,04   9,381760       Visa     36,321408 0,460000 1,4558% 6,06   11,646692   36,4884863   Superrich     36,600000   0,7000% 0,00   5,599870       US Mastercard     33,333330 0,130000 0,1300%     1,040000       Transferwise 0.0057% fee     36,560000   0,81% 4,56   6,468067
So theoretically Transferwise would be the cheapest in lack of a US based Mastercard. However  Pib came up with another result. Maybe transferwise lowered their fees.   So if possible I call on the community to post their real life exchange rates after conversion. I have no idea of bank account fees in Thailand that would need to be added. So my guess is Mastercard still takes the price if no account is needed within Thailand.   Thanks again!

 

 

 

 

From your example, shouldn't Superrich be the cheapest? Do they do international transfer?

 

 

[klg333]

Wise (Transferwise) is highly rated for “small” transactions (up to $7000). But their fee is a percentage of the amount sent, plus the spread on the exchange rate. 
OFX is highly rated for “large” transactions. No fee, and the spread on the exchange rate gets better the more you send. 
 

https://transumo.com/money-transfer-services/

[stat]

On 3/6/2021 at 12:39 PM, EricTh said:

 

 

From your example, shouldn't Superrich be the cheapest? Do they do international transfer?

 

 

To my knowledge they don't...