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Check what is the currency exchange fee - while you might not pay for withdrawal, they can still add a few % of the exchange fee (that’s at least the case for s

Check what is the currency exchange fee - while you might not pay for withdrawal, they can still add a few % of the exchange fee (that’s at least the case for some of Polish cards).

hocuspocus 7y ago
More and more traditional banks are getting rid of these fees too. Mastercard rates are very good (typically better than Transferwise's), and Visa has been catching up as well.
glogla 7y ago
It is definitely the case for Czech banks. GP's Equa has about 2.5 % in fact. Worse, there's basically no banks that have under 2 %.
lotsofpulp 7y ago
Schwab's currency exchange fee (via withdrawal at non-US ATMs in local currency) has basically been the spot rate in my experience, for a decade or more that I've been using it. And there's no other fees so it's basically free forex (for small amounts I presume, they're not going to let you do that for $1M I bet).
- nemothekid 7y ago
  Same - I’ve found Schwabs rates to be better than virtually any other option
- User23 7y ago
  Given that the daily forex volume is around $5 trillion[1], I wouldn't be surprised if they'll give you $1 million at the same rate as $1000. [1] https://www.quora.com/How-much-volume-is-traded-per-day-in-the-forex-market https://www.quora.com/How-much-volume-is-traded-per-day-in-t...
- gnicholas 7y ago
  How do you find out what exchange rate they use and how it compares to the spot rate? I have cynically assumed that they make money on this (despite claiming “no foreign transaction fee!”) but never knew how to check one company versus another.
  - lotsofpulp 7y ago
    I google “USD to GBP” or whichever currency right after I get the money. My BoA/Chase credit cards also give me basically spot rate conversions. Although this article explains why it might not make sense to use that number: https://www.thinmargin.com/blogs/why-comparing-against-exchange-rates-from-google-is-wrong https://www.thinmargin.com/blogs/why-comparing-against-excha...
ValentineC 7y ago
With HSBC, the bank rate they use at their ATMs isn't as good as the interbank exchange rate I would get if I used some other bank's ATM.

Check what is the currency exchange fee - while you might not pay for withdrawal, they can still add a few % of the exchange fee (that’s at least the case for some of Polish cards).

hocuspocus 7y ago

More and more traditional banks are getting rid of these fees too. Mastercard rates are very good (typically better than Transferwise's), and Visa has been catching up as well.

glogla 7y ago

It is definitely the case for Czech banks. GP's Equa has about 2.5 % in fact. Worse, there's basically no banks that have under 2 %.

lotsofpulp 7y ago

Schwab's currency exchange fee (via withdrawal at non-US ATMs in local currency) has basically been the spot rate in my experience, for a decade or more that I've been using it. And there's no other fees so it's basically free forex (for small amounts I presume, they're not going to let you do that for $1M I bet).

nemothekid 7y ago
Same - I’ve found Schwabs rates to be better than virtually any other option
User23 7y ago
Given that the daily forex volume is around $5 trillion[1], I wouldn't be surprised if they'll give you $1 million at the same rate as $1000. [1] https://www.quora.com/How-much-volume-is-traded-per-day-in-the-forex-market https://www.quora.com/How-much-volume-is-traded-per-day-in-t...
gnicholas 7y ago
How do you find out what exchange rate they use and how it compares to the spot rate? I have cynically assumed that they make money on this (despite claiming “no foreign transaction fee!”) but never knew how to check one company versus another.
- lotsofpulp 7y ago
  I google “USD to GBP” or whichever currency right after I get the money. My BoA/Chase credit cards also give me basically spot rate conversions. Although this article explains why it might not make sense to use that number: https://www.thinmargin.com/blogs/why-comparing-against-exchange-rates-from-google-is-wrong https://www.thinmargin.com/blogs/why-comparing-against-excha...

ValentineC 7y ago

With HSBC, the bank rate they use at their ATMs isn't as good as the interbank exchange rate I would get if I used some other bank's ATM.