Laurier Posted August 3, 2011 Share Posted August 3, 2011 I have been following the various companies which members use to transfer money to buy a house.I know these companies are covered by Financial Services Regs but I do have a niggle about transferring my life savings and earnings (when the time comes - haven't found THE place yet).I know a lot of members have done it so these companies must be OK but can I be sure that they are completely safe? A financial guy advised safety first and rate second. From reading various posts, it would seem that HiFX, Moneycorp, TORFX, and Caxton are the most used. Iknow HiFX have aligned themselves with Britline.I am probably worrying about nothing because they must be as safe as a High Street Bank?RgdsLaurier Link to comment Share on other sites More sharing options...
Daft Doctor Posted August 3, 2011 Share Posted August 3, 2011 Hi, can only speak from personal experience, but have used both HiFX and Currencies Direct several times without any problems.Remember, people used to say banks were safe........ Link to comment Share on other sites More sharing options...
Anton Redman Posted August 3, 2011 Share Posted August 3, 2011 Have a look at their websites. Last time I looked only one had a set of audited accounts posted. They had a very small amount of capital versus a huge turnover. It would only takes a small error or a single rogue trader to wipe some of them out.Also google Sterling and Currency and Manchester Link to comment Share on other sites More sharing options...
Théière Posted August 3, 2011 Share Posted August 3, 2011 Comforting advice Anton, HIFX are regulated by the financial services authority and compensation scheme so must have the margin of safety requirements at all time. Moneys are always held in bank accounts not on their premises.http://www.hifx.co.uk/Why-HiFX/Regulatory-information.aspx Link to comment Share on other sites More sharing options...
Sprogster Posted August 3, 2011 Share Posted August 3, 2011 Theiere, you are incorrect, as only some FOREX firms are voluntarily registered with the FSA, as in the UK it is not a legal requirement. Other than for AML purposes FOREX/Bureau de Change are an unregulated activity in the UK and you are not covered by any compensation scheme, unless they are FSA registered and even then compensation is limited to £48k.Crown Currency Exchange, one of the UK's biggest FOREX firms went into adminstration last October, leaving a lot of clients out of pocket, so it does happen.http://www.guardian.co.uk/money/2010/oct/04/crown-currency-exchange-collapse Link to comment Share on other sites More sharing options...
nomoss Posted August 3, 2011 Share Posted August 3, 2011 Are payment institutions covered by the Financial Services Compensation Scheme?No, there is no provision for a compensation scheme in the PSRs. The safeguarding provisions are intended to prevent customer losses in the event of an insolvency of an authorised PI. http://www.fsa.gov.uk/pages/Doing/Regulated/banking/psd/faqs/index.shtml#COMP > "Impact on consumers" Link to comment Share on other sites More sharing options...
cooperlola Posted August 3, 2011 Share Posted August 3, 2011 If you put these companies on a par with the average bookmaker then you have a better grasp of their status than treating them like safe financial institutions (if any of us can remember them), imho.[Www] Link to comment Share on other sites More sharing options...
Rabbie Posted August 3, 2011 Share Posted August 3, 2011 [quote user="Daft Doctor"]Hi, can only speak from personal experience, but have used both HiFX and Currencies Direct several times without any problems. Remember, people used to say banks were safe........[/quote]As far as I know no private person in the UK has lost money in the recent past because a bank has failed. People have lost money as stated in this thread because money transfer companies have failed. Link to comment Share on other sites More sharing options...
Claude Posted August 3, 2011 Share Posted August 3, 2011 If you are worried why not use CurrencyFair? Then you can trickle money through, ie you can transfer the £s, convert them to €s and transfer to your French account all in a matter of days and then start on another lot. Link to comment Share on other sites More sharing options...
Juswundrin Posted August 3, 2011 Share Posted August 3, 2011 I'm a big fan of Currencyfair, but the problem (in this respect) is that each transfer has to be by BACS, so 3 days in and another 1-2 days out.Depending on how little you're happy putting through at a time, and how much you need to change, that could take quite a while! Link to comment Share on other sites More sharing options...
Pommier Posted August 3, 2011 Share Posted August 3, 2011 When we moved to France we transferred every penny we had, and although we'd heard of currency transfer companies, we decided to take security and a lower rate (1.63 to the £ at that time) and got the bank to do it. Link to comment Share on other sites More sharing options...
John Brown Posted August 3, 2011 Share Posted August 3, 2011 I've used Worldfirst.com over a dozen times in the last four years and if speed of transfer is key it usually takes two working days after they confirm by email that your funds have arrived with them for it to land in my French Bank . There's a £10 charge on amounts under £10,000. You can transfer on-line so no need to speak to a dealerJohn Link to comment Share on other sites More sharing options...
nomoss Posted August 3, 2011 Share Posted August 3, 2011 There's probably as much chance of a currency transfer company going bad just as you use them as there is of the next flight you take to France crashing in flames.Having left the UK some 50 years ago my mind boggles at today's Brits' aversion to risk of any kind. [6] Link to comment Share on other sites More sharing options...
Laurier Posted August 3, 2011 Author Share Posted August 3, 2011 It's so interesting reading all the experiences. I am quite nervous of the whole process. I phoned HiFX (since they are now in league with Britline) to ask about their 'compensation' of which there is none as you said. He told me, though, (and I only have his word for it) that the compensation is only for investments in the UK and that during a transfer overseas there is no protection, even with the high street banks. Pommier, I am also in the same boat - transferring my whole life so was thinking I might be safer with my high street bank.He told me that HiFX were selected by the Post Office last year, after a year's due diligence, to be involved in their international transfers which he felt was a very good recommendation. He said they are 'authorised' which is one step up from some of the others and he recommended I ring the FSA for their view and I am going to do that. I have to say that I am thinking I will transfer it in 10 000 blocks (when the time comes) to make sure each one arrives! I suppose that is silly but I am nervous of them all now. I know it wouldn't be such a good rate with anyone doing it that way.I think I need to investigate further. Thanks everyone for the input - much appreciated and food for thought.RegardsLaurier Link to comment Share on other sites More sharing options...
Laurier Posted August 3, 2011 Author Share Posted August 3, 2011 Just remembered the guy at HiFX also said that their security was in having a holding account, like solicitors, so the money is held in an account and then transferred. He said that some of the other companies, particularly the smaller ones, quote a good rate and then speculate with those funds and this can lead to problems. As I said, I am only repeating what he said.Laurier Link to comment Share on other sites More sharing options...
nomoss Posted August 3, 2011 Share Posted August 3, 2011 Why not buy gold, by carrying banknotes to the dealer of course, can't trust any sort of transfer, then lock it all up in a secret underground cavern. Then stay at home, where it is SAFE, and hide in the cellar. Link to comment Share on other sites More sharing options...
Théière Posted August 4, 2011 Share Posted August 4, 2011 [quote user="Théière"]Comforting advice Anton, HIFX are regulated by the financial services authority and compensation scheme so must have the margin of safety requirements at all time. Moneys are always held in bank accounts not on their premises.http://www.hifx.co.uk/Why-HiFX/Regulatory-information.aspx[/quote][quote user="Sprogster"]Theiere, you are incorrect, as only some FOREX firms are voluntarily registered with the FSA, as in the UK it is not a legal requirement. [/quote]Sorry Spogster, I am sure my posts only mentioned HIFX not any others, although registration is voluntary once you volunteer you do have the FSA audits when they want and have a watchful eye on what you are doing and complaints/breeches of the rules/conduct including failure to keep proper/accurate records are subject to large fines so if you haven't got your house in order you would be a fool to register. Not I agree, fullproof but somewhat better than others who haven't registered at all. As you said registration isn't yet compulsory.[quote user="nomoss"] Are payment institutions covered by the Financial Services Compensation Scheme?No, there is no provision for a compensation scheme in the PSRs. The safeguarding provisions are intended to prevent customer losses in the event of an insolvency of an authorised PI. http://www.fsa.gov.uk/pages/Doing/Regulated/banking/psd/faqs/index.shtml#COMP > "Impact on consumers"[/quote]True, however as Laurier has stated,[quote user="Laurier"]Just remembered the guy at HiFX also said that their security was in having a holding account, like solicitors, so the money is held in an account and then transferred. He said that some of the other companies, particularly the smaller ones, quote a good rate and then speculate with those funds and this can lead to problems. As I said, I am only repeating what he said. Laurier[/quote]That means the owner of the account where the money is kept (the bank) does come under the Bank of England rules (if sited in the UK) and therefore the duty of care falls upon them and the compensation scheme although only £48,000 would apply as it does to banks, solicitors and property management companies. Ok some institutions do have thefts but a responsible company should be a reasonably safe bet.If you are risk averse then you must take the course of action that you feel suits you, others are happy to take a small risk with a company they have heard nothing but good reports about and the reward is a better exchange rate and lower fees. One of the key benefits for us was being able to guarantee the rate and have that money held for up to two years. Others went with a company that only held the same rate for two or three months and they got into a situation when the rate had dropped substantially by the time they needed to transfer funds but we need people to screw up to make us feel better after we offered the advice but which was freely ignored. Link to comment Share on other sites More sharing options...
cooperlola Posted August 4, 2011 Share Posted August 4, 2011 [:D]Nothing like a little schadenfreude, eh Teapot? Link to comment Share on other sites More sharing options...
Théière Posted August 4, 2011 Share Posted August 4, 2011 [quote user="cooperlola"][:D]Nothing like a little schadenfreude, eh Teapot?[/quote]Nods as good a wink to a blind horse Coops [:)] Link to comment Share on other sites More sharing options...
SC Posted August 19, 2011 Share Posted August 19, 2011 Probably old news as it deals with the links between Tor and failed Crown, but this commissioned article on the Money Saving Expert website is informative on registration shortcomings: http://www.moneysavingexpert.com/news/banking/2011/01/torfx-what-are-the-linksMe, I've decided to wait and see what happens to pound/euro values during the next few months before I move some money, as I can't believe that the ECB's purchasing what are effectively junk bonds will lead anywhere good for the euro. The only certainty though is that on the day after I make the transfer the pound will rise against the euro substantially!Steve Link to comment Share on other sites More sharing options...
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