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Beware of HSBC's online banking "24 hour currency exchange service"

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  1. #1

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    Feb 2009
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    Beware of HSBC's online banking "24 hour currency exchange service"

    I posted this is the middle of another thread. But maybe better to start a new one rather than hijack it.

    Do you guys know that everytime you use HSBC's online banking "24 hour currency exchange service" after hours, you are paying a higher price for it? This is happening transparently and you are not made aware unless you scrutinise the TTB and TTS exchange rates.

    As an example, the difference between the TTB and TTS rate on Australian dollars is usually about 0.04 during the week. But on Saturday and Sunday, the difference is about 0.11. So the banks "commission" is almost 3 times what it is usually.

    Whilst I can understand HSBC's need to cover themselves on the weekend because they dont know how the currency markets will open on Monday morning, I do not agree that they hide this and the average Joe who does a currency exchange over the weekend is losing money. I think a lot of the exchanges on the weekend are not really that urgent and if people knew they were paying more, they would wait until Monday.

    If HSBC put a note on their website when the user does the trade (just like they tell you there is a $30 fee before you confirm a local transfer), then people could choose and then I would have no complaints with their service.

    I now bank with SCB and they do not allow exchanges on weekends and at first glance it appears that HSBC has a better service. But now I basically I think HSBC's 24 hour service is a marketing scam designed to generate more profit for the bank.

    MovingIn07 likes this.

  2. #2

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    Thanks for the heads up. I will certainly look into it. At least you made your point to them by taking your business elsewhere.
    Posted via Mobile Device


  3. #3

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    I'm not defending HSBC, but don't most banks do the same? Even if you go to currency exchanger in TST or Central, they offer larger spread during off hours.
    The other thing is that since you know it by now, why choose SCB and give yourself one less option?


  4. #4

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    Good points. But actually I thought currency changers gave fairly crap rates all the time, not just over the weekend.

    I think most people trust that the banks TTS and TTB rates are about the best possible. But HSBC's TTS and TTB rate blows out when using on weekends.

    The other thing is that the HSBC service is online and very convenient and easy to do from home. I am not saying it isn't a good service, but just that there is no warning at all that if you do it on a weekend you will get a worse rate. Its just something to keep in mind next time you need to do an exchange.

    To answer why I went to SCB. There are many reasons. But also do you know that SCB exchange rates are better than HSBC, period. The gap between TTB and TTS is smaller at SCB than HSBC during normal business hours. HSBC have the advantage of offering the service outside normal hours whereas SCB will just give an error message on the screen saying to do it during business hours. But I can live with this for a better rate overall.


  5. #5

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    Does SCB charge you for depositing and withdrawing RMB like HSBC? Also, what are the daily withdrawal limits for CDN and USD with SCB? With HSBC, you can only withdraw $500cdn and $1000usd without having to incur any charges.


  6. #6

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    There is a daily limit of RMB 10000, CDN $1000 and USD $2500 that can be withrawn or deposited free of charge. So this is better than HSBC.

    Over this limit, they charge 0.25%.

    It is on page 6 here:
    http://www.standardchartered.com.hk/...ice-charge.pdf


  7. #7

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    ok thanks! Do they have an investment system like HSBC or better?
    Posted via Mobile Device


  8. #8

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    I do the basic stuff online like currency switching and term deposits.

    They have a "Security Services" online page. But I dont use that and it is disabled for me so I cannot comment if it is better or worse than HSBC.