Disruptive online currency exchange now offers Thai Baht

[J.J.B.]

Never being one to allow the banks to have more than the absolute bare minimum, I switched from using my bank for currency exchange to a start-up firm called Currency Fair. Started by a couple of former ForEx managers who were working at International banks and spotted a gap in the market, I've mentioned them a couple of times before as I've found their rates, fees and service unbeatable. When working in Italy and the US, it was really easy for me to transfer money back to the UK and vice versa without having to shop around. Since investing in Thailand over the past few years, they did offer a service of sorts in Thailand but it wasn't very easy or quick but the good news is that today they informed me that the THB service is now up-and-running!

Understanding that (sometimes) there's the odd sceptic on this forum, I want to point out that I am simply a customer of this firm, I don't work for, represent or get compensated by them in any way whatsoever and nor am I interested in that. I simply find their offer of peer-to-peer exchange or their quick market place very compelling and for anyone who has a bank account in any of the countries or currencies they cover, this is a no-brainer. Of course, if you aren't comfortable with online banking then this is not for you. If anyone uses a service with a better rate plus fee option than what they offer, please let me know as I would be interested to use that service too! http://www.currencyfair.com

[theprice01]

I'v always thought that with the peer-to-peer part of it, it would require people to send from Thailand to abroad in big numbers...i'v only ever heard of people sending money into Thailand.

its a great idea...i wish i had come up with it lol

[HHTel]

I've just looked at their website and it's very misleading. Although the deal was better, it was minimal. They quote the banks as charging 20 pounds (my bank charges 10). They quote the exchange rate from the bank as 53.59 (I've just transferred cash from my bank and got 54. Their difference in exchange rate is only 0.16 better!
You get that kind of difference between booths in Market Village. They claim to give me several thousand baht more for my thousand quid when it's actually less than a couple of hundred!

edit: Not sure where that smily face came from ..... it should read 54 point 8

[HHTel]

Just to add to my last, when transferring cash from a UK bank, always transfer in GBP to GBP. The exchange is then done in Thailand. Otherwise you will get the exchange rate your home bank offers. I'm sure that works the same with any foreign bank.

[theprice01]

HHTel - I wouldn't mind only paying £10, Barclays charge £25 each transaction

[lomuamart]

HHTel - I wouldn't mind only paying £10, Barclays charge £25 each transaction

And the other 8 GBP for some handling/international charge. I'm with Barclays as well and it was 25 GBP for a transfer but now I get hit with 33 GBP.
I used to use my Barclay's debit card at ATMs and thought I was being clever and saving banking charges by opening a Thai bank account up and transferring every month.
Well, Barclays seem to have caught onto that principle - hence the other 8 GBP charge. I'm still quids in but not by as much as I thought I would be.

[sateeb]

9.50GBP whatever the amount with the Halifax

[HHTel]

I transfer online every month from Lloyds and they charge 10 pounds up to 5,000 with no other charges. I always send as GBP although they suggest THB then warn you that it can take longer when you change it. It's usually in my Thai bank the next day. I used to use the ATM but that has become very expensive of late.

[lomuamart]

Must admit that the speed of transfer between Barclays and KBank is excellent and I get the money within 9 hours. Ie, transfer around 6am Thai time and receive by 3pm ish.
However, I suppose I'm paying for that service somewhere down the line.
When back in England last year, I went into my branch and asked them about setting a regular amount of money to be sent over each month. That wasn't possible unless I was physically there to sign a piece of paper - each month!!
I think that internet banking has improved considerably and my money isn't sitting in some banker's grubby paws when it should be in mine.
But, as said, I'll be paying for it somewhere.

[HHTel]

Seems with Barclays you are paying over the odds. LLoyds as I said charge 10 quid (in fact the first two transfers are half price - 5 quid). And through internet banking, I can set up a regular payment to go into my Thai bank on a particular date each month.

[J.J.B.]

I get stung with around £35 per THB transaction, since it's not happening within the EU - which is a lower charge, and Kbank also takes a cut of the action. My UK bank also gives a 'spot price' for the whole day whereas Currency Fair gives a fixed percentage of around 0.15% off the live wholesale rate. So you can certainly win or lose depending on the day's movement and it's worth noting you don't benefit from the 'live' rates until you have signed-up: the rates on the homepage are not 100% accurate in my experience.

This is just for the 'quicktrade' option though, if you are looking for a specific rate and are prepared to be patient, you can use their 'marketplace' platform, which allows you to specify how much you want to trade and at what rate. It then pits you against other people looking to transfer and who are happy to buy or sell your currency at a rate they are also happy with. This is where the peer-to-peer part comes into it, the theory being that for every Swede looking to buy THB from Stockholm, there is a fellow Swede in Bangkok looking to buy SEK back home - it's classic supply and demand.

For me, the best thing is that you can move your money around and it's not really anybody's business what you are doing. Yes, you have to be vetted when you join - as with any bank these days - to ensure you are not laundering money, but you are then using local systems. I haven't tested this yet, but may do if I ever sell-up in Thailand, in theory if you wanted to transfer 5M THB elsewhere, you would not be tchnically moving it out of the country, you would be paying it from your bank in Thailand to Currency Fair's bank in Thailand. Then it's in their centralised system and you could move it into as many currencies you like and to whichever accounts in whichever countries you have registered with them. This is the part I like but, again, haven't tested yet since at the moment it's always funds coming the other way!

[theprice01]

i now use an american express card for monthly withdrawals, always a good rate and the yellow bank (cant remember the name) (ATM machine) on the top floor of market village doesn't charge the 150baht fee that other machines do.

[HHTel]

'Theprice01' you are somewhat out of date. The 'Yellow' bank (aeon bank) fell into line some months ago with other banks and now charges for use of their ATM. Plus the currency transaction charge and the cash withdrawal charge levied by your own bank.

As far as Currencyfair goes. I only get charged 10 pounds to transfer money from the UK to Thailand at a very good rate (that's not within the EU!!) and unless your talking of very large sums of money, I don't see any advantage. I'm only ever moving a few thousand pounds so I'll stick with what I know.
As I've already said, never take the spot exchange rate of your own bank and transfer the money to Thailand in the original currency and let the exchange work here.

[J.J.B.]

As I've already said, never take the spot exchange rate of your own bank and transfer the money to Thailand in the original currency and let the exchange work here.

It's not clear to me how that works? Whenever I've transferred money from the UK, I haven't been offered the option to do it in GBP since my Thai bank account clearly doesn't deal with GBP but only THB. I've always had to exchange it before transferring it to Thailand, so what would I ask my bank to do - provided they were amenable? Also, £3GBP from Currency Fair is still less than £10 even at Lloyds.

[HHTel]

Of course your Thai bank will deal with GBP. I've been here for 12 years and never had a proble with 3 banks that I have. If it arrives in GBP then the bank will use the counter rate (or better) before depositing it into your Thai bank account. If you have a Sterling account with your bank in Thailand, then you can transfer GBP and it will remain as GBP until you draw from it at which time you will be given an exchange rate into baht.

When I transfer cash from the UK to Thailand, it automatically assumes you are converting it into Thai baht at which time you will get the spot rate from your bank in the UK. You have to over-ride that and insist it's transferred as GBP. When it hits the bank in Thailand (usually the next day) it will be converted at the local bank exchange rate. As I've said above, if you have a GBP account here then it remains as GBP until you draw on that account.

I agree the 3 quid is less than 10 but overall the advantage is still minimal. So you get an extra 7 quid over several thousand pounds ....WOW.

Clear??

edit: Different family members have sent cash over the years into my Thai bank account and always transferred GBP. Years ago, before I moved to Thailand, I sent every month GBP to my mother-in-law's account in Thailand. This is nothing new!