Forex fees bite consumers
Monday, 17 January 2005
Foreign exchange fees cost millions - Herald Sun
SMALL businesses and consumers are losing millions of dollars in foreign exchange transactions each year, according to online foreign exchange service OzForex.
A recent survey of exchange rate quotes from six major providers to buy 50,000 (about $A85,000) to send by telegraphic transfer found the best charged a margin of about 1.35 per cent on the underlying Interbank rate.
The worst provider charged more than 1.95 per cent.
In dollar terms this adds $A1173 and $A1682, respectively, to the cost of the transfer.
OzForex says it offers margins of less than 0.8 per cent against the interbank rate, and often less for corporate clients -- a saving of between $A500 and $A1000.
OzForex's Matthew Gilmour says margins charged on foreign exchange transactions are virtually unchanged from a similar survey in November 2001.
"Thousands of small and medium-sized businesses around Australia are doing exactly these sorts of transactions through their banks every week, often resulting in thousands of dollars extra cost each year," Gilmour says.
"For the privilege they get to stand in queues and deal with staff who often know little about foreign exchange."
Gilmour says that unlike the share market, where all investors have access to the same price to buy or sell shares, foreign exchange is not a level playing field.
"Generally only the banks know exactly where the real market is, and price transparency depends very much on where you are in the food chain," he says.
"Larger corporate and institutional customers can see and deal at professional market rates -- but smaller customers have little idea where the real market is.
"While it is fair that smaller volume deals attract a different price, most customers would be shocked at the size of these margins and the dollars involved."
Sydney-based OzForex claims to be the Aussie Home Loans of foreign exchange and says that since its launch in 1998, it has become one of the world's leading online foreign exchange services.
It reports more than 300,000 visitors to its website a month and operates in the Australian, British and NZ markets.
Register Free
Registration is quick and easy. Access live customer rates, free tools and make international payments.
Register todayAlready registered? Login
Quick Links
Mobile Forex trading tools
Make money transfers or currency conversions on the go via our mobile site, iPhone or Android apps. Learn more here
Navigation
Login
Quick Links:
- Personal Forex
Personal Forex
How do I send money overseas?
Watch this short video and see for yourself how easy it is to transfer money internationally.
Why use UKForex?
Operating since 2005, we are one of the largest online foreign exchange providers. Get competitive rates and pay low or no fees at all.
Safety & Security
UKForex is fully regulated and our secure online platform ensures a high grade of data protection.
More Services
Testimonials
Find out what our customers have to say about our service.
.jpg)
Forex Guides and info
Rates and Market news
- Business Forex
Business Forex
How do I send money overseas?
Watch this short video and see for yourself how easy it is to transfer money internationally.
Why use UKForex?
Operating since 2005, we are one of the largest online foreign exchange providers. Get competitive rates and pay low or no fees at all.
For your overseas business
Save time & money with UKForex to make and receive international payments and conduct business abroad.
More Services
Testimonials
Find out what our customers have to say about our service.
.jpg)
Forex Guides and info
Rates and Market news
About UKForex
Banners
You're in good hands:
-
-
-
UKForex is authorised by the
Financial Services Authority (FRN: 521566)
IMPORTANT: Use of this website is subject to the Website Terms. Use of the Services of the UKForex Limited is subject to the Client Agreement. Nothing on this website constitutes or should be construed as financial advice. This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites.
DISCLAIMER: UKForex makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this web site. Read full disclaimer.
UKForex provides international money transfer services to private clients and business customers. Use our free currency converter, exchange rate charts, economic calendar, in-depth currency news and updates and benefit from competitive exchange rates and outstanding customer service.
UKForex is authorised and regulated by the Financial Services Authority (FRN: 521566) for the provision of payment services.
Money Laundering Regulation Number (MSB): 12219180. Issued by HM Revenue & Customs (HMRC)
Read our Money Laundering Statement