Most efficient way to buy USD with HKD

[Gollygordon]

I am trying to transfer an amount of HKD into USD fixed term deposit in another bank. Because it is a largish sum, using HSBC's rates costs me more than I'd ideally like to pay so I'm looking at other options.

What is the most efficient way to send USD to a Channel Isles based bank, originating from HKD in an HSBC Hong Kong bank?

I'm looking a company called CurrencyTransfer.com who seem to have better rates - has anyone used these guys? I'm also selling USD to GBP each month over the coming year or so and having seen how bad HSBC's HKD to USD rate is I'm keen to find options there as well...

Thanks in advance for any tips.

[becomjapanHK]

WISE, OFX etc....these kind of companies are likely what you may be looking for.

[pin]

IB is by far the cheapest way.

[bdw]

Anyone frequently sending/receiving money overseas really should open an IB account if they want the best rates. There is a complicated one time setup process that involves you visiting their offices in Tai Koo to do identity verification, it takes some time to learn their system because its just so powerful with millions of features, and you should also technically hold a few shares or ETF's with them otherwise they can get a bit shitty with you if they see you just depositing and withdrawing from the account without buying anything. But this is well worth it for getting as close to real rate as you can get.

If you cant handle doing this and just want a simple process that also gives pretty good rates, then you should be looking at wise.com instead.

[shri]

involves you visiting their offices in Tai Koo to do identity verification

Admiralty ..

[shri]

IB will take some time if I am not mistaken - I did see some emails about needing some transactions in stocks or whatever before you could use them as a "remittance" facility. Also does take some amount of setup to have a few accounts setup as registered authenticated for transfers. Forget what the details are other than exact name matches. I think you need to transfer funds into IB from the receiving bank.

Any large transfers on a new platform will involve some AML / KYC delays. 50K USD range .. call your HSBC RM.

I'd probably, if I were to do it and was able to at IB, TX from HSBC HKD to IB, convert to USD and transfer back to HSBC HK and then to your receiving bank (and pay the f'ing HSBC fees.. they gotta make a living!)


(And yes, I did delete some snark about crypto ... guys - dead horse and no need to go all necro on it. We're a forgiving lot are we not?)

[7jai]

I routinely need to transfer some money from my HK bank to my NZ bank (HKD convert to NZD).

Does IB (Interactive Brokers) offer the best international transfer rates as well?

I currently use OFX and WISE (depending the amount i'm sending). I'm also looking for a much more cost effective way to doing this...

[bdw]

I routinely need to transfer some money from my HK bank to my NZ bank (HKD convert to NZD).

Does IB (Interactive Brokers) offer the best international transfer rates as well?

I currently use OFX and WISE (depending the amount i'm sending). I'm also looking for a much more cost effective way to doing this...

Yes IB will do what you want. You can load your IB account in HKD from a HK bank, convert it to NZD at the very best rate possible, withdraw it to a NZ bank account. As shri says, the bank accounts in both countries should be in your name. Also as I said above, best to do some other investing with IB as well or they might send you some nasty message telling you to stop abusing their service.

This is more cost effective than Wise/OFX. But Wise/OFX is still not bad, and not huge differences. I mean, fx rates can go up and down in an hour more than the difference between Wise/OFX and IB rates. But still its good to use IB knowing you are getting the best rate possible at that hour.

[7jai]

Yes IB will do what you want. You can load your IB account in HKD from a HK bank, convert it to NZD at the very best rate possible, withdraw it to a NZ bank account. As shri says, the bank accounts in both countries should be in your name. Also as I said above, best to do some other investing with IB as well or they might send you some nasty message telling you to stop abusing their service.

This is more cost effective than Wise/OFX. But Wise/OFX is still not bad, and not huge differences. I mean, fx rates can go up and down in an hour more than the difference between Wise/OFX and IB rates. But still its good to use IB knowing you are getting the best rate possible at that hour.

Thanks for that insight! Would you know the service charges they apply for these type of transactions? Do they take a % cut from whatever we transfer? etc.

[pin]

Thanks for that insight! Would you know the service charges they apply for these type of transactions? Do they take a % cut from whatever we transfer? etc.

With IB you get one free transfer a month. After that its something like USD10 per transfer. Max transfer amount is I think USD100k.

Incoming bank my charge a fee.