Expat Forum For People Moving Overseas And Living Abroad banner

Status
Not open for further replies.
1 - 20 of 31 Posts

·
Registered
Joined
·
97 Posts
Discussion Starter · #1 ·
I will be moving in later in the summer, and I need to get in some of my own money for the start. And this could end up a large sum if I will need to rent the flat with just 1 check.

So how do you get your money in, without paying a lot on commissions and exchange rate fees? I read somewhere that they take like 10% of your transfer just for commission? True? False?

This is rather important because if you need to get 120K in for renting the flat, you better get a good exchange rate and no administration feels... so could you advicse me on this or share your experience?
 

·
Registered
Joined
·
159 Posts
Honestly, I'd bring it in cash (USD) with a paper from the bank mentioning you withdrew it from your account. Additionally, I'd declare it as soon as I arrive to the airport.

120k dirhams in cash, on hand, is something that should not surprise you in this part of the world. Not saying its common, but it happens a lot.
 

·
Registered
Joined
·
1,665 Posts
I recommend doing this:

a) Open a savings account in the UAE (you can as foreigner). You will get an IBAN number. Open in a bank that operates in the UAE and there in your country (e.g. hsbc, barclays)

b) Instruct your bank in your country to wire the funds to your savings account. Voila.

Open in the same bank because you will know for sure that you are getting it.

Never seen any bank charging 10%.
 

·
Registered
Joined
·
4,052 Posts
Actually, the commission (more accurately the spread between the actual rate and the rate that the bank gives to you) could be as high as 5% or in some cases more (esp. for credit card transactions).

I agree with the suggestion above. Best is to bring USD in cash!
 

·
Registered
Joined
·
159 Posts
Actually, the commission (more accurately the spread between the actual rate and the rate that the bank gives to you) could be as high as 5% or in some cases more (esp. for credit card transactions).

I agree with the suggestion above. Best is to bring USD in cash!

That's what I would do, USD to AED rate is rather stable. Just tell me when you arrive and how you look so I can jack you :boxing:
 

·
Registered
Joined
·
45 Posts
Via bank is safer and hassle free.

But there is also traditional way by sending it through an agent.
You can find an agent locally in areas where people from minority background live. They can help you save a lot.
In 120k Dhs you looking to about 2k loss if sent via bank. Because bank charges your their Own rate.

Bringing $ with you can save you a lot of money. Because you can exchange it here in Dubai with a very good exchange rate.

It's common in Dubai keeping 100k in your pocket. And you wont be stopped and asked.
Plus it's 0% crime as far as i know.

Hope this helps.
 

·
Registered
Joined
·
97 Posts
Discussion Starter · #11 ·
Thanks for the replies. I been to UAE and I don't have an account there so I don't feel comfortable running around with 25,000 euros in my pocket or stored in my hotel room when I go for the swim.

So I think what I have to do once I get there start an account, get the IBAN of the account and have my wife transfer 25,000 euros from euro-area bank to that IBAN of the UAE bank and hopefully something close to 120K will show up in my account few days later.

I understand there are not that many chargers like 10% of the amount that I was afraid of. Ok I might loose some 400 euro on the exchange rate compared to exchanging it in chash with some unknown guy in a shade of the night, but I prefer to go for safety here first.

I am thinking to transfer euros from euro-area bank, because I don't have any US dollars or any US dollar accounts, so setting exchange my euros to dollars and setting up an dollar account or the transfer would be a lot of hassle and also cost some fees.

P.S. Regarding the housing loan against my salary, that's a good point --- I will ask about it.--- maybe they have this options if it is standard. :)
 

·
Registered
Joined
·
183 Posts
You can setup an account with a currency broker such as gcen.co.uk and then compare whatever rate they give you for EUR - AED transfers to your bank rate - for me they have always come up with a better rate and there is only a few days extra involved in the transfer process.
 

·
Registered
Joined
·
279 Posts
Thanks for the replies. I been to UAE and I don't have an account there so I don't feel comfortable running around with 25,000 euros in my pocket or stored in my hotel room when I go for the swim.
The maximum you can export cash from Shenghen Area, if I remember correctly, is 10,000 euros.

I would do that to start with, you can have a pretty good rate exchanging at legitimate shops when changing a lot of money: it's the best way to move money honestly, and Dubai is pretty safe, the hotel will have a safe in the room, and they wouldn't know if inside it's just your ipad, or 50.000 eur.

Actually I have done my math and the spread eur-usd - usd-aed makes still convenient, at least from my bank back home in Italy, to send USD, because if you send euros they will rip you off. Mashreq charges more than 3% + fees, while in USD it's something like 0,8%, and my bank is charging 1% from Eur to USD, to it's 1,8% against 3%.

Check with your bank their rates, and decide.

Some bank in europe will also transfer AED but they are going to rip you off big time.
 

·
Registered
Joined
·
97 Posts
Discussion Starter · #14 ·
By the 3% or 1.8% you mean the exchange rate spread, correct?

Are there any fees for the actual transfer taken by the UAE or European banks? Or that is usually free?

Finally, do expats usually have USD accounts with the UAE banks? That way you can transfer USD from your home country bank to USD account in your UAE bank.
 

·
Registered
Joined
·
279 Posts
By the 3% or 1.8% you mean the exchange rate spread, correct?
Yes.

Are there any fees for the actual transfer taken by the UAE or European banks? Or that is usually free?
My bank charges a lot, like 20 or 25 euros. UAE bank I don't remember how much does it takes, at least 25 dirhams ... So if you transfer small amounts (like 500euros) I can understand how you could end up paying between spread and commission 10%...

Finally, do expats usually have USD accounts with the UAE banks? That way you can transfer USD from your home country bank to USD account in your UAE bank.
Indeed.

The fact is that if you earn money in AED, and you move them to your USD saving account, you would face the foreign exchange spread at that stage.

If on the other hand you receive money in USD and then want to spend the money back in Dubai, you need to withdraw or transfer to the AED account, so you will face again the spread.

In the worst case you are being hit twice.

So it only makes sense if you want to shift your saving from Europe to Dubai for tax reasons, and you will keep them in that account until you come back to europe (meaning you are never going to change those into AEDs).

Another purpose would be speculation: you could shift your savings in a EUR/GBP local account, because you don't need the money right now, in the hope that the AED comes back at 5 - 5,20 , etc. when you actually need to spend these.
If it goes to 4,20 it would be your business though ;-)
 

·
Registered
Joined
·
1,665 Posts
Thanks for the replies. I been to UAE and I don't have an account there so I don't feel comfortable running around with 25,000 euros in my pocket or stored in my hotel room when I go for the swim.

So I think what I have to do once I get there start an account, get the IBAN of the account and have my wife transfer 25,000 euros from euro-area bank to that IBAN of the UAE bank and hopefully something close to 120K will show up in my account few days later.
I think you are good to go. I honestly never lost more than 0.5% in FX transfers to US dollar (after all AED is pegged no wonder), but for more volatile currencies I did. Use 3.675 AED per dollar for comparison purposes. It is a fair rate for spot rates so you know where you stand

If you bank with a bank that has a Branch here even better.
 

·
Registered
Joined
·
1,665 Posts
By the 3% or 1.8% you mean the exchange rate spread, correct?
Use 3.675 AED per dollar as pegged rate. For euro it varies you can use google they offer a good comparison rate.

Are there any fees for the actual transfer taken by the UAE or European banks? Or that is usually free?
If you transfer within the same bank operating in different countries, you do not have to pay to receive the funds in the UAE, but check the policy of the bank, if you send using a different bank you will be charged fees to receive the funds, such fees varies from bank to bank. HSBC for example do not charge fees to receive funds if the sender is HSBC.

You always pay to send as far as I am concerned

Finally, do expats usually have USD accounts with the UAE banks? That way you can transfer USD from your home country bank to USD account in your UAE bank.
Yes, spot on! but you will prefer leaving it outside of the UAE given the issues that might arise if the holder passes away
 

·
Registered
Joined
·
6 Posts
Sort of on the same point, going from AED to USD with a view to spending the money on day to day living expenses in the USA.
I want to be able to provide safe access to dollars for a teenager going to stay in USA for 9 months.
I am thinking about a Visa card loaded up in UAE but each transaction may cost commission
Any suggestions please??
 

·
Registered
Joined
·
97 Posts
Discussion Starter · #19 ·
Any idea how much do you pay even with HSBC to send the funds? Can we settle that to send the funds is about 25 eur/usd/pounds more or less to an UAE account?

I think to transfer small amounts the transfer fee of around 25eur is outrageous, but to transfer large amounts the transfer fee of around 25eur is too small to matter :)

What issues related to the holder of the account passing away? You mean like it is more difficult for the relatives to access the cash? I tho this issues are now easy with the globalization.

P.S. Finally, I assume that to draw money from the ATM with your home country debit/credit card would be an outrageous rip off, am I right?
 

·
Registered
Joined
·
1,665 Posts
Any idea how much do you pay even with HSBC to send the funds? Can we settle that to send the funds is about 25 eur/usd/pounds more or less to an UAE account?
You are in Europe, right ? I don't know you need to visit the website or visit the branch to find out.

I think to transfer small amounts the transfer fee of around 25eur is outrageous, but to transfer large amounts the transfer fee of around 25eur is too small to matter :)

What issues related to the holder of the account passing away? You mean like it is more difficult for the relatives to access the cash? I tho this issues are now easy with the globalization.
Pretty much. The laws and regulations are different.

P.S. Finally, I assume that to draw money from the ATM with your home country debit/credit card would be an outrageous rip off, am I right?
Check your debit card terms and conditions. Some banks charge an extra fee on top of the withdrawal. Besides, there is a daily limit withdrawal on the ATMS that varies. The FX rate might not be bad, but cannot tell.

Credit card
Why would you use cash advance ? The rates are outrageous across the board does not matter where your card is from
 
1 - 20 of 31 Posts
Status
Not open for further replies.
Top