HSBC HK to Thai very high exchange fee

[PocoLoco]

Sent 500k THB to a Thai account from HSBC Hong Kong. The funds were in HK dollar, the conversion was done by HSBC, after conversion the difference was approx. 2375 HKD or 10800 THB according to xe.com.

That breaks down to about 2% loss in currency conversion! I find that a bit excessive, when sending money from the HSBC HK account to a USD account in the US the conversion loss is about 0,2%, or 10 times less.

Is there a way around the high conversion fee? I was thinking about opening a bank account at bangkok bank in HKD but will it make much difference if i do the conversion to THB locally at Bangkok bank instead of HSBC HK?

Edited August 14, 2015 by PocoLoco

[Jip99]

You did not send HK$ if HSBC did the conversion - therefore you got stuffed.

Always (there are odd exceptions) send in local currency and let the Thai bank convert

[PocoLoco]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

Edited August 14, 2015 by PocoLoco

[Jip99]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

I believe you are mistaken.

Do not use XE as your benchmark, look at the individual bank's quoted rate.

Have a look at the multitude of topics and this subject and you will see that, almost without exception, you get a better rate by remitting in your home country currency and converting 'offshore' in Thailand.

Doubt me by all means but I also used to work for HSBC.

[Time Traveller]

Please remember HSBC offers a premium service thats why they charge high fees. The kind of fees money launderers and criminals don't mind paying for the service HSBC offers.

For legitimate people you would be best to stay well away from international money laundering facilitators like HSBC.

[Baerboxer]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

I believe you are mistaken.

Do not use XE as your benchmark, look at the individual bank's quoted rate.

Have a look at the multitude of topics and this subject and you will see that, almost without exception, you get a better rate by remitting in your home country currency and converting 'offshore' in Thailand.

Doubt me by all means but I also used to work for HSBC.

My experiences over several years are similar to what you say. Normally I transfer in USD or GBP and then transfer here. The rate is usually slightly higher. I always check before transferring to be sure. The difference isn't massive as the OP suggests he suffered though.

The only time HSBC are competitive is when you are quoted a special rate for a large amount (GBP 30k minimum). That is always worth checking out, getting a quote from you bank here also. Usually, IME, HSBC win that one about 60% of the time.

If you transfer on-line you can check the e/r before doing a transfer so it's easy to see their rates and check with local bank ones. Also, don't forget the transfer charges. Not cheap and a pain since they closed their retail business here and we lost Globalview,

[Baerboxer]

Please remember HSBC offers a premium service thats why they charge high fees. The kind of fees money launderers and criminals don't mind paying for the service HSBC offers.

For legitimate people you would be best to stay well away from international money laundering facilitators like HSBC.

And who do you suggest using? Because all the big American, Swiss, French and German banks are just the same as HSBC in the charming activities.

[stament]

Somchai?

[topt]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

I believe you are mistaken.

Do not use XE as your benchmark, look at the individual bank's quoted rate.

Have a look at the multitude of topics and this subject and you will see that, almost without exception, you get a better rate by remitting in your home country currency and converting 'offshore' in Thailand.

Doubt me by all means but I also used to work for HSBC.

My experiences over several years are similar to what you say. Normally I transfer in USD or GBP and then transfer here. The rate is usually slightly higher. I always check before transferring to be sure. The difference isn't massive as the OP suggests he suffered though.

The only time HSBC are competitive is when you are quoted a special rate for a large amount (GBP 30k minimum). That is always worth checking out, getting a quote from you bank here also. Usually, IME, HSBC win that one about 60% of the time.

If you transfer on-line you can check the e/r before doing a transfer so it's easy to see their rates and check with local bank ones. Also, don't forget the transfer charges. Not cheap and a pain since they closed their retail business here and we lost Globalview,

The only way to really check is if the OP gave us the actual amount of HKD he sent (minus any sending costs at that end) and what was received into his baht account and the day it was credited. There should also have been a 200-500 baht charge at the baht end for receiving the funds. If you can get a print out from the bank it should give you all that info. You could then do a realistic comparison and look at BKK banks TT rate on the relevant day vs. what HSBC gave him.

As others said you cannot compare it to a mid market rate on XE.

[Time Traveller]

Please remember HSBC offers a premium service thats why they charge high fees. The kind of fees money launderers and criminals don't mind paying for the service HSBC offers.

For legitimate people you would be best to stay well away from international money laundering facilitators like HSBC.

And who do you suggest using? Because all the big American, Swiss, French and German banks are just the same as HSBC in the charming activities.

But only HSBC was proven in a court that they did willingly launder money for international crime gangs and terrorists and were subsequently fined $1.9 billion.

[MikeOwen]

I use HSBC for UK to BKK bank transfers , they charge me £4 transfer fee , I send the money in GBP , BKK bank seem to give me a fair rate for my GBP far better than HSBC would give if they transferred the money to Thai Baht in the UK.

[SGX]

Need to check you type of account transfer limits etc . HSBC have traps with the different bank accounts. Limits apply everywhere if you breach a limit they will hit you hard,

Best to transfer funds in the country you want to use in not in o/s country.

HSBC rate is changed daily so check confirm before you enter it.

"again send in HKD let thai bank transfer for you"

I had my secretary transfer funds from Aud to HKD from australia to HSBC in HK . she accidently didnt read the "send currency so it was converted to hkd in australia and sent , The fees where huge .

[Baerboxer]

Please remember HSBC offers a premium service thats why they charge high fees. The kind of fees money launderers and criminals don't mind paying for the service HSBC offers.

For legitimate people you would be best to stay well away from international money laundering facilitators like HSBC.

And who do you suggest using? Because all the big American, Swiss, French and German banks are just the same as HSBC in the charming activities.

But only HSBC was proven in a court that they did willingly launder money for international crime gangs and terrorists and were subsequently fined $1.9 billion.

And the others are all innocent until proven guilty of course.

[glasswort]

I use HSBC for UK to BKK bank transfers , they charge me £4 transfer fee , I send the money in GBP , BKK bank seem to give me a fair rate for my GBP far better than HSBC would give if they transferred the money to Thai Baht in the UK.

I do exactly the same and the rate given by Bangkok Bank is always reasonable. I also transfer USD from my HSBC account in HK to Bangkok Bank and the rate is always reasonable.

[stament]

Four pounds sounds cheap for an international transfer charge

[Jonmarleesco]

Transfer in HKD and have the Thai bank do the conversion. FTR, opening a foreign currency account in Thailand depends on your residence and work status.

[stament]

FTR?

[lkv]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

Next time send HKD or whatever other currency and let the banks in Thailand convert. If you have a Thai Baht account you can receive pretty much any major foreign currency in it and it gets converted. For over 20-30K USD, Kasikorn would call you and even give you a higher rate sometimes.

For example the last midrate I can see on xe.com is 1 HKD = 4.5443 THB, but the dollar moved up and down after the banks closed in Thailand Friday. Friday, Kasikorn paid 1 HKD = 4.50363 THB. That's about 1% spread.

USD to THB you'd get under 0.5% here in Thailand,

However, at HSBC HK Friday the situation was: Midrate: 1 THB = 0.2201 HKD Bank Buy 0.2087 Bank Sell 0.2313

So your spread was 0.2201 to 0.2313 = about 5%

Recap: 1% loss if you let the Thai Banks change your HKD, 5% loss if you buy Thai Baht from HSBC HK.

[topt]

Transfer in HKD and have the Thai bank do the conversion. FTR, opening a foreign currency account in Thailand depends on your residence and work status.

FTR?

I think it is shorthand - For the record

So FTR, it didn't depend on either when I opened an FCA with SCB a few years ago. As with all things banking mileage will vary from branch to branch

[rijit]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

I believe you are mistaken.

Do not use XE as your benchmark, look at the individual bank's quoted rate.

Have a look at the multitude of topics and this subject and you will see that, almost without exception, you get a better rate by remitting in your home country currency and converting 'offshore' in Thailand.

Doubt me by all means but I also used to work for HSBC.

Fair enough can you be more specific. Like how to do it? Obviously Without being to revealing which banks you recommend ect ect. thanks in advance

rijit

[chill]

Please remember HSBC offers a premium service thats why they charge high fees. The kind of fees money launderers and criminals don't mind paying for the service HSBC offers.

For legitimate people you would be best to stay well away from international money laundering facilitators like HSBC.

And who do you suggest using? Because all the big American, Swiss, French and German banks are just the same as HSBC in the charming activities.

But only HSBC was proven in a court that they did willingly launder money for international crime gangs and terrorists and were subsequently fined $1.9 billion.

I think you are wrong there. If HSBC had been laundering crime money why were the U.S government unable to arrest or find any criminals? I think HSBC were fined for not having all the anti-money laundering checks and balances in place which were required under U.S. federal laws. Do you honestly think HSBC would be allowed a banking license in the U.S. if they were willingly laundering money for crime gangs and terrorists? The regulations imposed by the Fed are very strict and onerous for banks to implement..

As for the remittance rate difference: because there are exchange control regulations in Thailand, the Thai baht is worth more once its out of the country. If you buy the THB in HK then remit it to Thailand you can place it in an "offshore" THB account from where you can remit it back out without problem. These "offshore" THB are at a premium. If you send HKD or USD into Thailand and let the Thai banks convert it for you then it goes into your THB "onshore" account where there are restrictions in getting the funds back out. Then of course you have to take into account the Thai banks appetite for HKD. They would prefer to receive an internationally accepted currency like USD. If they have to sell the HKD they got from you to buy USD for their other customers then they must take into account that cost for themselves when they buy the HKD from you. I know its complicated but its all driven to an extent by market forces such as supply and demand. When remitting money around the world it's better to stick to major currencies. The same could be said for travelling with cash. I do remember 15 years ago when the THB offshore and onshore rate varied at times by up to 10% but I guess that the relaxing of exchange control regulations has brought the two rates closer together. I always send my money into Thailand in USD. On one occasion I instructed HSBC HK to remit THB to Thailand to cover costs of building a house here. I was stunned at the exchange rates and requested the Thai Bank to cancel the remittance and send it back to HK. I then had HSBC remit the funds in USD and saved myself a considerable amount of money.

[Jip99]

That's strange, to my experience it has always been the other way around. I will try sending in HKD next time.

Edit: just checked the bangkok bank exchange page. Sending in HKD and then exchanging at BKK bank would set me back 12k THB.

I believe you are mistaken.

Do not use XE as your benchmark, look at the individual bank's quoted rate.

Have a look at the multitude of topics and this subject and you will see that, almost without exception, you get a better rate by remitting in your home country currency and converting 'offshore' in Thailand.

Doubt me by all means but I also used to work for HSBC.

Fair enough can you be more specific. Like how to do it? Obviously Without being to revealing which banks you recommend ect ect. thanks in advance

rijit

Standard practice Rijit.

Take HSBC and Halifax for examples. Online SWIFT transfers are GBP 4 and GBP 9.50 respectively. Fair prices.

Remit your money in GBP (HK$ for the OP here) to your Thai bank.

Look at the prevailing rates first on the websites of, say, Kasikorn Bank or Bangkok Bank. Those rates are going to be close to what you get - especially with HSBC where it arrives same day; Halifax is third working day.

The Thai banks will deduct their published charges. On a GBP 1,000 transfer this is likely to be a few hundred Baht, say 250 BT.

[sandyf]

Please remember HSBC offers a premium service thats why they charge high fees. The kind of fees money launderers and criminals don't mind paying for the service HSBC offers.

For legitimate people you would be best to stay well away from international money laundering facilitators like HSBC.

And who do you suggest using? Because all the big American, Swiss, French and German banks are just the same as HSBC in the charming activities.

But only HSBC was proven in a court that they did willingly launder money for international crime gangs and terrorists and were subsequently fined $1.9 billion.

Not quite right.

Charges were brought against HSBC Bank USA, just one of the 9 subsidiaries of UK based HSBC Holdings.

[Jaggg88]

Four pounds sounds cheap for an international transfer charge

£4 is the correct fee, and that is the lowest fee of any UK bank. My UK bank (Nationwide) charge £25.

[Jip99]

Four pounds sounds cheap for an international transfer charge

You will find it under 'electronic payments from your account' , page 4 here:-

https://www.saas.hsbc.co.uk/1/PA_esf-ca-app-content/content/pws/content/personal/pdfs/general-price-list.pdf

[stament]

Holy cow that is cheap Gbp4. So I guess it's best to send GBP from the UK to you Thai bank account yes?

My understanding is that BKK Bank charge a maximum of THB 500 if you elect to pay back charges from the remitting account. Any idea what other charges are due on either side if following this procedure or are there none?

Thanks Jip and Jag well worth knowing ;-)

[Jip99]

Holy cow that is cheap Gbp4. So I guess it's best to send GBP from the UK to you Thai bank account yes?

My understanding is that BKK Bank charge a maximum of THB 500 if you elect to pay back charges from the remitting account. Any idea what other charges are due on either side if following this procedure or are there none?

Thanks Jip and Jag well worth knowing ;-)

Yes.

The way to go is to 'tick' the box to pay HSBC charges (the GBP 4) and BKB will then take heir handling charge as you described. BKB are marginally cheaper than my main bank, Kasikorn, who charge 0.25% max 500 Baht but also charge 20 Baht to remit from Bangkok + a further 0.1% (unlimited). So, for example, on a GBP 20k transfer with the rate in Thailand 54, the Thai bank will convert to 1,080,000 Baht. BKB will charge 500 Baht but Kasikorn charge 1,600 Baht.

[natway09]

How many times do I have to say it,,,,, when sending foreign monies into a Thai bank A/c

NEVER,,, NEVER get the conversion done by the remitting bank. Let the Thai bank do the conversion

Can save up to 4% depending on the currency

The big 5 major Thai banks give a realistic conversion

[stament]

I always do that Natway