Using PayPal for currency exchange

[lilelvis2000]

I've been looking at ways to get money I have in Canada out of there and over here. I've looked at Currencies Direct which I hear is decent and will probably go with them.

But I was wondering if anyone has used PayPal to do this. I can tie one hotmail account to the account in Canada and another hotmail account to an account in the UK. PayPal does charge some hefty fees to withdraw the money and for currency and cross border fees. Still doesn't seem too bad.

Anyone used it to move funds around?

[Fred Bloggs]

I think PayPal would be very expensive since the sender and the receiver get hit in the conversion of the currencies. Effectively you'd take both hits using PayPal. One way to get the cash into the UK might be to use a prepaid debit card like this one from Caxton Fx. Presuming the money is in a bank in Canada, you could transfer the canadian money from the Canadian account onto the card and the just draw it out in the UK. I think cost wise it could be fairly competitive.

[Bugbait]

Tried HiFX? We've used them several times, no hidden fees, can buy/lock rates in advance and competitive rates. There are some minimums to the transactions so depends on amount and frequency.

[backrubber]

I sell stuff in the states and in Canada and payment is always via PayPal. I hold the money in my PayPal account in the originating currency and then convert it into Sterling before withdrawing it.

The exchange rate I get always seems pretty bad to me - and that's on top of the commission PayPal takes for handling the transaction in the first place.

PayPal is incredibly convenient ... but unfortunately you have to pay a premium for that convenience.

I tend to think you could probably do better than PayPal for your requirements.

[VFV]

If you are sending more than say £1,000 (i presume you are) even small FX rates will have a tangible impact in your pocket, so i would never go with Paypal. I bought an item on ebay a few days ago in EUR and the implied commission from the EUR/GBP rate they applied to the invoice was ~3%.

Your best choice is to go with one of the online converters. I use Oanda.com, they charge a flat $20 fee per transfer and the FX rate commission is virtually zero (something like 0.01%) so it works really well for big amounts. They are also a big reputable company, so you will be able to sleep at night while your money is crossing the Atlantic.

[lilelvis2000]

Never heard of Oanda.com- I've been looking at HiFX, Forex, et al. They look pretty good. Thanks.

Yes, Paypal is extremely convenient and reliable. But the fees are huge. To transfer $60000 the fee is ~$1400, on top of the probably rubbish rate they will offer. Just wanted other people's experiences. It probably works out if you're sending $100.

[AtW]

Nevermind conversion rate - basically 3% fees mean that anything over £1k is better done via international bank transfer: usually banks charge better conversion rate too.