Advice on foreign currency (USD) bank account

[Waldo]

I'm considering getting a foreign currency (USD) bank account. What's the process / options for funding it (GBP to USD) from my regular bank account? Also, any advice on getting best available exchange rate?

 

Thanks

[kidley]

to the best of my knowledge in the weston world at least, you have to live in the country you want a bank account in, that includes the u.s.

[cgksheff]

It is quite straightforward with most banks.

I've had dollar and euro accounts in the past.

 

My reason for doing it was to hold payments from overseas to wait for advantageous exchange rates before converting to sterling.

 

You talk of funding it from a GBP account which will be straightforward, but makes me wonder why you want to do this? Trying to profit from currency fluctuations?

 

Once have an account you will be stuck with that bank's exchange rates and charges.

Edited August 23, 2017 by cgksheff

[kidley]

i think i misunderstood his post

[Dozer]

http://www.moneysavingexpert.com/banking/foreign-currency-exchange

[nowt2pctoday]

I'm considering getting a foreign currency (USD) bank account. What's the process / options for funding it (GBP to USD) from my regular bank account? Also, any advice on getting best available exchange rate?

 

Thanks

 

you might find it a bit more difficult than in the past due to the more stringent money laundering rules coming through with the banks, i import and pay in $ and over the past year have had to comply with banking interviews under a "safeguard" process to show that i am not a dodgy gun runner or drug dealer or am not cleaning up money, it can get quite intrusive. speak to your bank first.

[Waldo]

It's for buying/selling cryptocurrencies. Better to buy them with USD than GBP, as you get a more favourable rate. Also, when you cash out; better to sell them for USD than GBP (think it's partly to do with a much higher volume of trades to/from USD than GBP).

 

I'm just wondering what kind of conversion rate I'd get transferring from a GBP account to a USD one? Would I have the option of the bank's own rate, or using some foreign exchange?

[andrejuan]

I have a dollar account with Lloyds, paying in dollar cheques is still a paper exercise, and each cheque I receive has to be endorsed and signed by me. The form is not simple until you have filled in a few, and any discrepancy at all in the the name (your name) written on the cheque will result in it being rejected by the International Banking Dept.

I have never funded it from my Sterling account, but I assume it is easy online (with costs). The costs on Lloyds online banking are clearly shown when (before) you do the transaction.

 

The charges are not insignificant and the exchange rate not competitive, but that is the case with all banks because if you need the account you need it and have to pay for the privilege.

[umar_m]

Hi Waldo, I'm in the process of doing exactly that.

I've heard high street banks don't play too well with cryptocurrencies. There have been incidents of people having their accounts closed for transferring to bitcoin exchanges, or for using credit cards there. Might be a good idea to check that.

 

Also, I'd recommend looking into tax implications beforehand. Different tax applies if you just buy and sit on a cryptocurrency, and if you trade. Here are some things I've found:

 

Cheers!

[Waldo]

Yep, taxation (possible counts as capital gains?) is a consideration. Briefly discussed with my accountant, and got the impression HMRC haven't properly reacted to crypto, yet...

 

Will check out your links, thanks.

 

So far as getting sterling on to an exchange to buy crypto. I found sending GBP from my own bank to Revolut (google them, also they have a mobile app), then converting in the Revolut app, from GBP to Euro (at the interbank spot exchange rate), then transfer Euros on to coinbase. Once on coinbase, I was sending my Euro balance to Gdax, which is the exchange that backs coinbase.

 

I also used coinfloor.co.uk; to buy bitcoin in GBP. Not sure now is a good time to buy bitcoin though, price has recently shot up to all time high, and it looks like it's to do with this upcoming (mid November) fork to segwit2x.