Ok. Was this HSBC HK Branch, to be clear?
Ok, I look at OzForex' website and it seems the broker's margin for a GBBHKD cross is about 0.15%. I would have gotten this - before, not anymore, now more like 0.2% - by calling my HSBC RM for a USD/HKD trade, but not a cross (small size).
I think you got an excellent trade TB, well done, and glad to see that these folks can have good prices!
I also used ozforex to send money to Malaysia since my bank here didn't offer Ringgit. But when transferring to Australia I noticed that ozforex were actually worse that my normal bank TT rates so just used the bank. Its a shame since I think ozforex is an Australian company they should have offered decent rates on the Aussie
But anyway the screenshot I posted above does show that HSBC offers the worst rates for JPY of the 12 or so banks on the screen and you can download the app and see for yourself any currency at any time they are always the worst. Granted if you transfer large enough amounts or have the premier status you can get something better and more reasonable in line with the other banks, but I don't think better than what the majority of other banks offer normally. Really my point is HSBC like to play these kind of games, make you feel special but really just a marketing trick.
bdw my good friend, this app was posted on a number of occasions before, but I think the integrity of its data should be checked.
Have you attempted to do so already ?
I'm asking because I have not, but I have just run a quick sanity check on HSBC's figures (because they are the quickest for me to check, I will check BOC and Citi's datas later), and the very wide bid-offer you see in the app, is nowhere near where you can actually trade, in the real world, with this bank.
I post the following evidence, all taken as you can see pretty much at the same time, I needed a few moments to copy/paste these screenshots and it could not be done precisely simultaneously. But I hope you will agree this is simultaneous enough:
- screenshot from the app showing a 0.06532/0.06727 quote: that's a bid-offer spread equal to (0.06727-0.06532)/0.06532=3%.
- screenshots from actual trades in HSBC Online (before discount from the RM): showing a 0.065904/0.06701 quote: that's a bid-offer spread equal to (0.06701-0.065904)/0.065904=1.7%.
The 2 actual HSBC Online trades were done for a size of HKD4,000. Which is what I purchased today from Berlin for my holiday.
Conclusion: the actual bid-offer at which you can actually trade HKD/JPY in the real world with HSBC Online is about half what it is as advertised by the app (and about a third after RM discount).
I'm going to be on holiday starting tomorrow morning for a few days, but would like to check with BOC and Citi when I am back next week, I have accounts with them. Perhaps you could check with your usual bank how these figures look like and let us know in the meantime ? Would be interested to do more work as to how realistic this app really is.
In the below screenshots, I have highlighted relevant figures in red color for your convenience.
Last edited by jrkob; 09-01-2017 at 10:14 PM. Reason: Removed my account numbers for more confidentiality
@jrkob I've just checked the HSBC rates shown in the app against this HSBC web page:
They match perfectly. So I think I still stand by the original statement that HSBC published rates are shit, but then they give you 'preferential treatment' to something that is more reasonable. I havent used HSBC for about 6 years but from memory it used to flash up red on the screen when you did a transfer that you get some special rate or something. But in reality I think it was just something fairly average and nothing special.
Enjoy your holiday mate
It's not that the HSBC published rates are shit: the HSBC published rates you're looking at under "bank notes" are for like a random tourist showing at a random HSBC HK branch, show a few HKD bills, and ask for JPY bills instead. It's not shit: it just doesn't apply to you and I.
Because nobody on this forum here would do this.
Instead, people would go to their usual bank, disclose they are a customer of such bank... and enjoy the TT rate. So the TT rate should apply.
And in this case, the rate HSBC advertised by HSBC in the link you (again helpfully) posted is a lot closer to the tradable prices I posted. Still not the same, but closer. And after the 30% or whatever RM discount, even lower.
I am not disputing with you the fact that HSBC is an expensive bank when it comes to FX: I agree. @TheBrit has kindly posted his experience and this is fantastic news, it means getting excellent prices can, evidently, be done.
* edit: again, I am broadly speaking satisfied with the services HSBC gives me. As I don't like their FX rates, I do large ones with InteractiveBrokers at what is essentially mid-market +/- a few cents... literally. This costs me the cost of a swift transfer back from IB to HSBC.
Last edited by jrkob; 09-01-2017 at 11:17 PM.
@jrkob - you are spot on. I've been to and fro with this and @bdw before. That app is bollocks. It simply doesn't reflect the rates offered in the HSBC website.
I did the due diligence to transfer a lot of money around a couple of years ago and at that time - over a period of around six months - HSBC was competitive.
The fact @bdw continues to parrot the output from that app makes me think he hasn't actually checked.the real world exchange rates.
I called Berlin the other day and their rate HKD to USD was about 0.10% from par. I was super surprised as I thought I'd get hit for 1-2%. I take it this is the best rate one could get?
Are the rates at Berlin negotiable?