Currency Brokers, Reliable And Good Rate

[Khun Bob]

Hi

I'm looking into property purchase in Thailand right now and looking forward a bit to the time when i need to have some Thai Baht to pay for it.

I've heard about and been in touch with some UK based currency brokers that have some interesting features over doing a SWIFT transfer with a bank :

* Get a better rate than a SWIFT transfer - close to interbank rate

* I can specify the rate I would like THB to be bought at - of course i dont know when this will be so may have to wait - also if the exchange rate becomes unfavorable can specify a lower rate to buy at or just ask for the trade to be done immediately

* When transferring over a certain amount, some brokers will do the transfer free of charge

I have no actual experience of using a currency broker or dealer and would like to hear from any one who has used this route to get Thai Baht into Thailand. From reasearch i have done on the internet this seems to be a growth area but is also has the potential to be a dodgy one as i beleive that currency brokers are not overseen by the usual uk bodies (FSA etc) that are supposed to safeguard people in the event of wrongdoing.

I am currently in touch with some uk brokers and asking them a few questions. IF your interested when i get updates i can post them here.

Look forward to hear any expeerience you have or any words of wisdom on the process of getting money into Thailand which would be in Thai Baht on entry.

[Khun Bob]

This is the feedback i have had from a currency broker in the uk called currencies4less - this is not an advert for them - I would really like to hear from people who have used the services of such companies - especially in light of the THB potentially strenghening

Thank you for your recent enquiry.

Currencies4Less is a wholly owned division of The 4Less Group plc. The 4Less Group plc is a publicly quoted company trading on AIM, a market regulated by the London Stock Exchange. It is the only publicly traded commercial foreign exchange company in the UK. This transparency, coupled with regular financial reporting, has created considerable confidence amongst existing and potential customers and has enabled Currencies4Less to surpass its most optimistic targets.

We pride ourselves on providing an efficient and cost-effective service with no commission charges. We have extensive experience in providing currency transfers to all major regions of the world so if you are buying property in Europe or importing from Japan, make sure you get the very best service by placing your transaction with Currencies4Less.

· No Commission charges

· Dedicated dealer assigned to you

· Specialist in property transactions

· Guaranteed forward prices

Which foreign currency contract should I use?

Spot contract

A Spot contract secures the highest attainable rate of exchange at the point of agreement. The foreign currency is available for dispatch on receipt of the client's cleared funds. Please see methods of settlement.

Forward Contract

Definition: 'A commitment on behalf of a client to take the physical delivery of a currency on, or before, an agreed date in the future at a guarantee rate of exchange'

The most widely used type of Forward contract is a Time Option Forward that allows access to the secured foreign currency before the agreed maturity date in the future. This is particularly useful for clients purchasing overseas in order to 'fix' a sterling cost of the property, avoiding any negative fluctuations within the foreign exchange market. Please ask for further details regarding Forward contracts.

How long does it take to get my personal account number?

As soon as we have received the completed client agreement forms from you, the registration process can be completed within a few hours. Your dedicated dealer will contact you to confirm that the trading facility has been authorized. You will also receive confirmation via post.

How do I pay for the currency?

CHAPS (same day Telegraphic Transfer) - preferred method of settlement.

BACS - Internet transfer or telephone banking service (Allow 3 days for receipt of funds).

Cheque/draft - All cheques will take 5 working days to clear (NB: not acceptable for settlement in excess of £40,000 unless arranged by prior agreement). Payable to Currencies4Less.

How are payments made?

Once your funds have arrived/cleared, we will dispatch your foreign currency via International Telegraphic Transfer to the specific bank account(s) as directed by yourself. We are also able to produce Foreign Currency bank drafts. All payment instructions must be communicated in writing (fax, post or email).

Where are my funds held?

Funds are held for each client in a dedicated Bank of Ireland client account.

What are the charges when transacting with Currencies4Less?

* There are no charges for transactions above £5,000 (or FX equivalent).

* For all transactions below £5,000 an administration fee of £25 is charged in addition to the transfer fee.

* All telegraphic transfers are charged at £10.

* Foreign Currency Draft: £15 (please allow 4-5 working days for delivery via secure method).

Registration

To open an account with us is simple. Please complete and return the attached client agreement forms, parts A, B & C-1, with the 2 forms of ID requested. There are no costs involved and you are under no obligation to trade, even when your account is set up. We will process your account and issue you with a Personal Account Number, which will enable you to buy and sell currency over the telephone. We charge no fee or commission for this service.

I am sure you'll find our service friendly, helpful and of real value.

I look forward to welcoming you as a client of www.currencies4less.com Please contact me on the number below to discuss any queries you may have.

Please click on www.ompp.com for further information on sending regular transfers to overseas bank accounts.

[grahamb]

I've just opened an account with Moneycorp in the UK to do transfers the other way from Baht to £. I've not done any transfers yet so I don't know how their service is but I've read good things on the net. They charge £15 per transfer.

I also contacted HIFX to enquire about their Baht to £ services. They were prompt in calling me back and answered all my questions but their minimum transfer amount was more than I was looking for. However, that probably wouldn't be an issue if you're buying property. I don't know how much they charge.

In both cases, I also don't know the rates they offer but I have heard that the currency brokers give much better rates than banks.

My transfers are the opposite direction to yours but if you're interested, I'll post my opinions on Moneycorp after I've done some transfers.

[Khun Bob]

Hi and thanks for your reply

I think it would be good to have info on both ways. I' still doing my research and have had a positive call so far from currencies4less. Going to keep on going and will post info as i get it.

Some of the currency brokers do cater for small amounts at regular intervals.

I'm just concerned that although currency brokers may offer better rates than banks, I have read that they may be a bit dodgy as they are an area that is unregulated in the UK.

Cheers

[grahamb]

A reply finally to give my experiences with Moneycorp...

They were good - I arranged the trade over the phone and their rate was about 0.5% better than the rate at the bank here. Not a lot but it made a difference. There also weren't any additional charges because I used the 'standard' transfer into my UK account not the immediate transfer. The standard transfer supposedly took a few days but it seemed shorter to me (don't know exactly when the money went in because I didn't check my account frequently.) From my very limited experience, they didn't appear to be dodgy - handled professionally and did exactly what they said they'd do.

However, it was probably the first and last time I'll be using them for Baht > £ transfers because of the hassle I had at this end! To complete the trade, I had to transfer my Baht to their Thai Baht account at HSBC in London. My account is with Kasikornbank so I went to their main branch on Paholyothin Road. As this one has a big sign saying it is their international trade centre, I thought they'd know what they were talking about. Big mistake!! It took about 1hr of me convincing them that it was possible to have a Thai Baht account in the UK and therefore I didn't need to transfer the money to £ or $ before sending it out of Thailand. In the end, they only believed this when they called HSBC in Bangkok and got confirmation from them. I don't know what I'd have done if Moneycorp had an account with a bank who don't have a branch in Bangkok... The total transfer took 2hrs to arrange and in the end, Kasikornbank's fees were double what they had quoted me at the start. I couldn't work out with them if that was because it was a Thai Baht transfer so I don't know if I could have avoided that. Fortunately their fees were less than I saved by using Moneycorp so I didn't lose money but I did get a few more grey hairs!

If you're planning to use a currency broker to transfer from £ to Baht, I'd check exactly how the transfer works before doing it and make sure that it can be handled at this end. I assume that the broker would pay Baht into a Thai account so make sure this doesn't confuse the bank if it's coming from overseas!

[ZZZ]

One big flaw in this is that to buy a property as a foreigner, you need to have a FETF (used to be a tor tor 3). This form is only issued when you transfer FOREIGN CURRENCY to Thailand and this currency must then be converted to Thai Bath by the receiving bank.

For other purposes, when large amounts are involved, you can probably make some savings.