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How does the wholesale foreign exchange market actually work?

getmondo.co.uk

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Re: How does the wholesale foreign exchange market actually work?

#51

Post by scrollaway »

phillc73 wrote: post #47
germanier wrote: post #23

Earlier quoted context omitted.

I also remember that they talked about such an option. To be fair they state in multiple locations that using their app is a prerequisite for having an account (I think I even remember checking such a box during signup). You also can't authorize transfers without their app. This is a deliberate choice on their side.

Happy to install the app, just give me a direct apk and don't force me to use Google's Play Store.

To be fair this is an exceedingly uncommon use case. I do think they should provide a standalone apk link though, you could talk to support about it.

Re: How does the wholesale foreign exchange market actually work?

#52

Post by germanier »

pjc50 wrote: post #36
germanier wrote: post #21

Earlier quoted context omitted.

I have been using Number26 as my main spending account for a few months now but wouldn't use it as my main account. There are a few things that aren't implemented yet, such as crediting cheques (I still get one or two a year) or non-SEPA transfers (though to be fair it is very expensive at banks compared to e.g. Transferwise so I wouldn't use it either way). The support is overwhelmed at the moment and over Christmas…

Revolut: No fees and perfect interbank rates? Where do they make their money, then?

Presumably they get the interchange fee (1-2% in the US and capped to 0.2% in the EU now). I suppose they operate at a loss at the moment but which business we talk about on this site doesn't?

Re: How does the wholesale foreign exchange market actually work?

#53

Post by phillc73 »

Symbiote wrote: post #10
bhouston wrote: post #5

I can not imagine it is that good of a deal as I get calls about people wanting to help me with my foreign exchange on a monthly basis for many years now. There is not topic that I get more cold calls on than this. This suggests to me, this means it must be fairly profitable for those companies offering it, and that profit likely would come out of my pockets, but I haven't done the analysis. That said, I know my bank…

I transferred some savings last year, because I emigrated. All the normal British banks offered very poor exchange rates. Traditional money exchange sites, which seemed to target people making large foreign purchases (houses etc) or people looking to invest in foreign currency were better, but as soon as I signed up on the website I received calls from their staff, which annoyed me. In any case, the rates were still…

I also emigrated form the UK to another European country a while ago. Previously, I've always been transfering GBP to EUR, using a broker. This has been cost effective, but a bit of a pain to submit the order, deal with the broker etc.

I just used TransferWise to transfer some EUR back to GBP and I must say it's been the easiest, most painless forex transaction I've ever undertaken (also completed a lot of GBP to AUD back and forth over the years). The website UI and process flow was straightforward and intuitive. Obviously the money hasn't arrived in my UK account yet, so one must reserve final judgement.

Thanks for raising my awareness of this service.

Re: How does the wholesale foreign exchange market actually work?

#54

Post by phillc73 »

scrollaway wrote: post #51
phillc73 wrote: post #47

Earlier quoted context omitted.

Happy to install the app, just give me a direct apk and don't force me to use Google's Play Store.

To be fair this is an exceedingly uncommon use case. I do think they should provide a standalone apk link though, you could talk to support about it.

I have talked to Number 26 support about it and their response, while courteous, amounted to "too bad, we don't offer a direct apk download. If you don't download the app from the Play Store, you can't verify your account."

Re: How does the wholesale foreign exchange market actually work?

#55

Post by ramchip »

Symbiote wrote: post #45
ramchip wrote: post #30

Earlier quoted context omitted.

You can also use a plain old brokerage account. My broker charges 0.2% commission, less than half TransferWise's lowest rate, and it's direct access to the interbank market so there's no margin, execution delay, etc. The downside is you need to own the account you send money to, due to AML laws.

Would they transfer, say, £1000, or only much larger amounts? I tried to find brokerage accounts, but either the rates were bad, or the minimum amounts too high. It could be useful next year though, if I buy a house here.

You can transfer as little as you wish, but you're right, there's a minimum to open and hold the account.
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