Exchange Rate Help!

[cjnst2]

OK. Here is my situation.

I have a US Bank account, a bunch of virtual e-wallet type accounts(moneybookers, neteller, paypal, etc), and a Thai bank account.

I've read on this forum of the many different ways that a lot of you transfer money. Some say Western Union, some say Nationwide, some say moneybookers.....I'm confused.

I'm confused on the whole exchange rate process and how it works.

Today I found the FIXED rate to be 1US dollar = 37.445.

When I went into my bank at Siam Commercial they told me I could get the T/T rate of 37.53 baht to the dollar. Obviously this was a better rate so what exactly did the fixed rate that I looked up online represent?

I believe the T/T rate is a Swift transfer rate but I'm not 100% sure.

Ok. Now to my questions.....

Moneybookers will charge me a fixed rate fee of 1.80Euros to withdrawal money. they also say this It is from their website......

"What exchange rates do you apply if I send money in another currency or to an account in another currency?

For transactions involving a currency conversion, we use the daily reference rates as published by the European Central Bank. However, we apply a spread of 0.95% in either direction for transactions involving only one of the three: EUR, USD or GBP. For transactions involving any other currency, we apply a spread of 1.3%. This is not a hidden charge but a protection against the volatility and risk associated with FX markets."

I question this. It seems like bullshit and a definite hidden charge. Shouldn't I be able to just have the currency converted here in Thailand to if I want? 1.3% seems pretty steep to me. My ATM fees using my US card were only slightly higher than that. Or am I reading this wrong?

The only other fees that I would incur would be a fee of minimum 200baht, maximum 500baht from my bank here in Thailand. That doesn't seem like too much as long as I move money in larger amounts. Don't want to keep much more than 50,000 to 100,000 baht in my Thai account though. I'll only move money here when I my account runs low.

Overall with these facts does moneybookers sound like a good option for me or should I go with another option? Is the T/T rate one of the better rates one can get?

Anyway......Let me know. Peace.

~Christopher

[Maestro]

Moneybookers will charge me a fixed rate fee of 1.80Euros to withdrawal money. they also say this It is from their website......

"What exchange rates do you apply if I send money in another currency or to an account in another currency?

Your question to Moneybookers was very general, and you got their general but correct reply.

Basically, your question was unnecessary, because you should not ask Moneybookers to do the conversion; your Thai bank should do it. In other words, if your account with Moneybookers is in US dollars you order Moneybookers to remit, for example, USD 2,000 to your Thai bank account, if your Moneybookers account is in euro you order the transfer of EUR 2,000. You will always get a better exchange rate if your Thai bank receives the foreign currency and then converts it.

Moneybookers does not need to know in what currency the recipient’s account is. In fact, any bank’s payment order form does not ask this information.

A fee or EUR 1.80 (of Moneybookers) for a SWIFT remittance is very good, probably much lower than the fee your US bank would charge you.

The fee of your Thai bank will be same regardless from what foreign bank the remittance comes.

Yes, the T/T rate is the rate applied by your Thai bank for incoming SWIFT remittances (T/T stands for “telegraphic transfer”, but today the telegraph is no longer used, it is all done by computers communicating with each other)

Just for your information, the “spread” mentioned by Moneybookers is the range between their buying and selling prices for foreign currency. For example, if your account is in USD and somebody remits EUR to that account Moneybookers will credit your account at the “fixed rate” minus the spread of 0.95%; if you order the transfer of EUR to another account Moneybookers will debit your USD account with the “fixed rate” plus 0.95%. All banks use such spread; their buying rate is always lower than their selling rate.

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Maestro

[cjnst2]

Moneybookers will charge me a fixed rate fee of 1.80Euros to withdrawal money. they also say this It is from their website......

"What exchange rates do you apply if I send money in another currency or to an account in another currency?

Your question to Moneybookers was very general, and you got their general but correct reply.

Basically, your question was unnecessary, because you should not ask Moneybookers to do the conversion; your Thai bank should do it. In other words, if your account with Moneybookers is in US dollars you order Moneybookers to remit, for example, USD 2,000 to your Thai bank account, if your Moneybookers account is in euro you order the transfer of EUR 2,000. You will always get a better exchange rate if your Thai bank receives the foreign currency and then converts it.

Moneybookers does not need to know in what currency the recipient’s account is. In fact, any bank’s payment order form does not ask this information.

A fee or EUR 1.80 (of Moneybookers) for a SWIFT remittance is very good, probably much lower than the fee your US bank would charge you.

The fee of your Thai bank will be same regardless from what foreign bank the remittance comes.

Yes, the T/T rate is the rate applied by your Thai bank for incoming SWIFT remittances (T/T stands for “telegraphic transfer”, but today the telegraph is no longer used, it is all done by computers communicating with each other)

Just for your information, the “spread” mentioned by Moneybookers is the range between their buying and selling prices for foreign currency. For example, if your account is in USD and somebody remits EUR to that account Moneybookers will credit your account at the “fixed rate” minus the spread of 0.95%; if you order the transfer of EUR to another account Moneybookers will debit your USD account with the “fixed rate” plus 0.95%. All banks use such spread; their buying rate is always lower than their selling rate.

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Maestro

Thanks Maestro..... Just for your information I never sent that question to moneybookers....It was in their FAQ section on their website. Thanks for clearing that up though. I definitely want the conversion to take place in Thailand. My bank charges a 0.25% fee on swift transfers which actually seems quite good to me. Of course their is a minimum fee of 200 baht but that isn't too bad. That's like a $5 or $6 dollar fee plus the $2 dollar fee from moneybookers on a transfer of $2k. Seems fair to me. Peace.

~Christopher