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HSBC and Hidden Fees

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  1. #1

    Join Date
    Nov 2017
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    HSBC and Hidden Fees

    Hello all,

    I'm new to HK and to this forum. I'm a business guy from the US who is in the early stages of relocating to HK from San Francisco. In anticipation of writing some large checks here in connection with the relocation (rental deposit, etc) i attempted to transfer some money from my HSBC account in the US to my newly opened HSBC account in HK, but cancelled the transaction when i saw the exchange rate. Instead of about 7.80, HSBC was intending to exchange USD to HKD at the rate of 7.61. Given the fairly large amount i was trying to transfer, the "fee" associated with the transfer would be about 10,000 HKD. I think that is outrageous, especially given that I am merely trying to move my own money online within HSBC via their Global Transfer process.

    So, in addition to wanting to vent my anger, I thought posting here might result in some helpful suggestions for how to accomplish the same goal and obtain a fair exchange rate. Thus far, the best alternative route i have identified is to withdraw cash via an ATM from one of my other US accounts (where I get a proper exchange rate and pay no ATM fee), but i am limited to about 1000 USD per day. So, i can get there eventually, but it would take a while and its not convenient.

    Any other ideas? And as an aside, is kind of treatment of its customers merely par for the course for HSBC? I'm beginning to think that might be the case. Thanks in advance for any thoughts or suggestions


  2. #2

    Join Date
    Mar 2007
    Posts
    13,099

    Yes - its outrageous and they are charging you over and above, its not nice.
    No - its not a hidden fee. Its all out in the open for those who look.
    Yes - you can do better. Start by whinging to your bank manager to give you a better rate, that usually gets you something much better.

    Yes - there are even better ways to do this and I'm sure someone will come along very shortly to give you more tips.

    MandM! likes this.

  3. #3

    Join Date
    Dec 2010
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    Wrong side of the door to hell
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    Transferwise is an excellent choice. Their borderless accounts are great.

    https://www.bloomberg.com/news/artic...rrency-account

    Kowloon Goon likes this.

  4. #4

    Join Date
    Mar 2016
    Posts
    25

    I've always found transferring from HKD to USD within my HSBC HK bank accounts to be relatively fair. Rates are usually around 7.81 or so. Perhaps you can transfer your money to a HSBC Hong Kong USD bank account first and then convert once it's arrived.

    In anycase, once the money is in HK, you can withdraw in USD and convert at various money exchange stores that would offer a fair rate.


  5. #5

    Join Date
    Feb 2006
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    Indeed if you transfer from USD to HKD in HK the exchange rate is terrible. Instead you had better transfer from USD in the US to a HSBC USD account in HK, and then move the money from your HSBC HK USD account to your HSBC HK HKD account. Doing that you get an exchange rate around 7.79. Crazy right?

    Perhaps you can use a different US bank and send HKD instead of USD in which case the bank on the US side does the conversion instead of the receiving bank.


  6. #6

    Join Date
    Oct 2006
    Location
    Hong Kong
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    15,557

    Set up an interactive brokers account. Use them to make the forex exchange. Do this in either US or HK. Then use your Global View (presume you are HSBC Premier already) to make the transfer in the relevant currency.

    Cwbguy likes this.

  7. #7

    It's very easy to set up a USD account at HSBC HK if you already have a HKD one. My personal banker set one up for me and all I had to do was sign one piece of paper. Definitely only do the inter-country transfer in the same currency, then convert between the two local accounts.


  8. #8

    Join Date
    Nov 2017
    Posts
    29

    Thanks to all who have replied with observations and suggestions. Just to clarify, I have USD with HSBC-US (and other banks in the US) and want to have HKD in my HK account with HSBC. I called it a "hidden fee" because the Global Transfer page shows zero dollars of fees and yet offers a bad deal because of the exchange rate. A fee of 100-200 USD would be much cheaper. Also, when i opened the HSBC accounts in the US and in HK I confirmed that i could move money without fees and at the official exchange rate. Evidently not.

    I wasn't aware that I could have a USD denominated account with HSBC in HK. I will explore that angle, as that would seem to be the best remedy. Also, I emailed my Premier Relationship Managers in both US and HK to inform them of the issue and ask for their help. So, far i have not received any reply. Once i do, i will ask about having a USD denominated account in HK and how that would work, and will report back on what i learn in case that might be useful to others in a similar situation.

    Thanks again to all who offered their thoughts.

    MandM! likes this.

  9. #9

    Join Date
    Aug 2006
    Posts
    11,884

    I was going to suggest looking at Transferwise, but kimwy already beat me to it.

    Note that the service can only be used to transfer money into HK, not out. As HK is seen as a major money laundering centre.


  10. #10

    Join Date
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    There is a handy app that shows exchange rates of various HK banks. As you can see HSBC has the worst rates, for USD almost 3 cents per USD less than the best bank.

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    Name:  Screenshot_2017-11-15-09-40-38.jpg
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    Cwbguy likes this.

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