Transferring money to Thailand from your home country, be it the US, Canada, Australia, or UK, has been a pain point for just about every expat at one time or another. But we all have to do it.
The scale of it is huge.
In 2013, $4,124,000,000 in remittances were sent to Thailand from other countries, of which US, Germany, Australia, UK, and Sweden were the biggest senders.
You can bet your bottom dollar a huge amount of that was expats funding their Thai bank accounts, and of course sending money to Thai partners.
We all know banks are a scam, but hiding your money under a mattress isn't exactly a safe bet these days, not that it has ever been. So because they have you by the short and curlys, they are free to slap on big fees when you want to transfer money.
In short, it sucks.
You are charged to withdraw your own money!
Okay, so you are abroad, you expect to pay a small fee, but not for them to make a big profit out of it. And believe me, they do…
The 4 Pain Points of Transferring Money to Thailand
1: Transfer Fee
The SWIFT transfer fee can be anywhere from £10-25, or $15-30. If you do regular transfers, say two a month, that's going to run you near on £250 a year! And we're nowhere near done with fees yet. Read on.
2: Receiving Fee
After the transfer fee, you get hit on the other end by the receiving bank for another amount of about the same. Bangkok Bank, for example, charge 500 Baht. So you've already paid twice to transfer your own money.
3: Currency Conversion Charge
But here's the nasty one.
Most people presume you get the regular transfer rate. You know, the one you see on XE .com. It's called the “market rate”. But then you do the math and realise that you've been shortchanged, massively!
You can offset the loss slightly by choosing to send money in your home currency. But many people sending money to Thailand make the mistake of converting to Thai Baht at their source bank instead of at the Thai end.
This will see you lose even more money, because your bank steals a nice chunk of cash on their own exchange rate – a rate they set themselves, not the “market rate”.
That said, the Thai bank will still convert your currency to Thai Baht at their own rate and make a enough for a meal out, but they won't squeeze your pockets as hard as your sending bank (your bank back home).
4: Transfer Times
So, you've had your pockets skimmed on all fronts. You paid two transfer fees, and a currency conversion charge. But even after they've dipped their finger in your honeypot multiple times, the banks still can't promise the money will be there within 48 hours. Hell, sometimes it's as long as 5-7 days!
Like It, Lump It, Or…
Sending money to Thailand is expensive, but what other option do you have except the bank?
You could carry money through customs, but then how often do you fly home to be able to do that?
To be honest, I hate carrying a ton of money around with me. It's just not safe.
Western Union is just silly expensive, and PayPal steals 3.5% on a transfer and charges up to 4% currency conversion fees. Yes, I said up to 4%! It's 3% for the UK.
Well, as you probably guessed, the point of this post is to reveal that there is a solution, thank Buddha!
Seriously, I have waited years for this, and I was so skeptical I didn't believe it was possible at first.
But now you can transfer money to Thailand with ZERO bank charges, get the MARKET RATE currency conversion and only pay a 1% fee.
I know, it's hard to believe. But I'm doing it and so now are most of my readers.
And here's the proof:
Check this out: Here is the rate I got from Transferwise on October 18, 2017 on 1,000 GBP:
Yes I know, the Pound is weak as hell.
But now look at the bank transfer rates of two high-street banks. Transferwise beats them both, comfortably. I dread to think what some of the others were:
Now look at the market rate for the same time of day on XE.com.
Unbelievable, right? The Transferwise rate is actually slightly better!
So: not only did I get a better rate than my bank, I got a better rate than XE. com, which is the market rate.
But that's not all: I only paid a £7.46 fee. Usually, my bank (Nationwide) charges £20. Plus I'd have to pay 500 Baht (£11) to my receiving bank in Thailand.
So altogether, with the favourable exchange rate, I saved over £50 with Transferwise over transferring through my bank!
For my friends from the USA, here's how things sized up in dollars:
Again, the Transferwise rate is better than the market rate below!
I was so over the moon with my transfer that I popped off an email to them and asked if I could get more information so I could blog here about it (see below on how it works).
They wrote back and offered to give my readers a free transfer up to 1,000 GBP (only for the first transaction though).
Banks could charge you up to 5% in hidden costs when sending money to any bank account abroad. TransferWise is up to 8x cheaper. It's only fair.
But How Does Transferwise Make Sending Money to Thailand so Cheap?
Well, with backing from the likes of Richard Branson, I guess anything is possible. But actually it's quite genius.
Once you initiate the transfer, Transferwise searches for other people doing a transfer from the location you are sending to, and effectively swaps the currency.
Of course, money transfers being as frequent as they are, this means there's usually several matchers available, making the process damn quick. My first one completed within 48 hours.
The process is completed by making several individual conversions using effective market exchange rates work in your favour.
In other words, different parts of the transfer can be converted using different exchange rates. Normally it takes a day or two to process conversions. For big amounts it could take longer.
Here's a cool video that explains how it works:
Here's a Quick Benefits Summary:
- No home country bank fee.
- No receiving country bank fee.
- Market rate currency conversion, or better!
- Fast transfer, especially on amounts below 5k. 48-72 hours.
- Once you're comfortable with the system, can use the iOS or Android app for transfers on the fly.
It feels good to avoid those bank fees!
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