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Old 02.11.2012, 12:36
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FX Money Transfer Service - To save your Business Money

Ladies/ Gents,

I am trying to set up an online fx money transfer service in Switzerland to transfer foreign currencies online, safely, quickly, and at a better rate than the banks will offer you, hence saving you/ your company money - thus increasing profits!

Whilst I appreciate this service exists in the UK, there does not appear to be any Swiss companies operating. I would really appreciate any feedback as to if you would use this type of service for yourself/ your business? (Or if you think it is a bad idea!)

Please could you also give me some indication of what sector you are in/ number of employees, if you reply to help with my market research.

Thank you so much in advance
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Old 02.11.2012, 13:25
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Re: FX Money Transfer Service - To save your Business Money

Great idea in principle.

Set up a survey if you need accurate market research info.

It's going to be tough to establish yourself in the current environment, and trust is a big issue, so unless you set this thing up somewhere else already then good luck.
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Old 02.11.2012, 13:28
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Re: FX Money Transfer Service - To save your Business Money

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Ladies/ Gents,

I am trying to set up an online fx money transfer service in Switzerland to transfer foreign currencies online, safely, quickly, and at a better rate than the banks will offer you, hence saving you/ your company money - thus increasing profits!

Whilst I appreciate this service exists in the UK, there does not appear to be any Swiss companies operating. I would really appreciate any feedback as to if you would use this type of service for yourself/ your business? (Or if you think it is a bad idea!)

Please could you also give me some indication of what sector you are in/ number of employees, if you reply to help with my market research.

Thank you so much in advance
I use oanda. Why does it have to be Swiss - for privacy?
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Old 02.11.2012, 13:50
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Re: FX Money Transfer Service - To save your Business Money

I use ozforex (London) for personal use, not that often. I like that the rate I see and confirm is the rate I get. I have also had suggested hifx.

Ozforex is owned by Macquarie Bank and this was a big thing for me.

When you are transferring the deposit on a house saving a few points on exchange rate is great but losing all your dough would be a disaster.
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Old 02.11.2012, 14:04
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Re: FX Money Transfer Service - To save your Business Money

You know how much liquidity you need for this, not to mention regulation, and all that for get 0.001 better exchange rate....

If you need a bit for holidays, it really makes bugger all difference and if you need to change for business, the banks do give better rates if you have the volume, and if you don't, the difference is pretty small anyway.

Why would i transfer $50k to you for a transfer back to CHF ?

What guarantee have i got ??
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Old 02.11.2012, 14:17
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Re: FX Money Transfer Service - To save your Business Money

Love Doctor - Thanks for your feedback -I have actually set up a very quick survey here http://www.surveymonkey.com/s/D5N67BF

Paizuri - Oanda I wasn't aware of - thanks. But they seem to be closing their money transfers unit down - I need to investigate a bit better as to why.

Brian - Thank you too for your comments. Ozforex certainly seems strong, especially with their established relationships.

Today only - I'm aware of regulators issues - I have discussed with the regulator and know what is required. Liquidity - thats the uncertainty! But yes, I appreciate I need decent volumes going through every day to keep my partner bank happy! Better exchange rate - well, the Money Service providers offer far better exchange rates than the high street banks. I agree it is a waste of time (for both parties) if it is 500 or 1000 chf holiday money. For larger amounts, 0.5%-1% improvement in price can be significant. The risk of your money "disappearing" is very low, as the client money would not actually touch my business accounts - only my partner bank's accounts - hence your risk is that the top tier bank would default (you would be covered by the Swiss compensation schemes)

Thanks for the input guys - really appreciate it.. Any further inputs/ criticisms/ feedbacks would be more than welcome.

Chris
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Old 02.11.2012, 14:24
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Re: FX Money Transfer Service - To save your Business Money

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Paizuri - Oanda I wasn't aware of - thanks. But they seem to be closing their money transfers unit down - I need to investigate a bit better as to why.

Chris
Damn, you're right - I hadn't seen that. Anyway, I only ever transfer to and from myself so I will be able to continue to do this.
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Old 02.11.2012, 14:40
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Re: FX Money Transfer Service - To save your Business Money

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Damn, you're right - I hadn't seen that. Anyway, I only ever transfer to and from myself so I will be able to continue to do this.
Damn from me too - I also hadn't seen this before, and do use it quite regularly to transfer money for me and for some of my other family members.

I was about to say that I am very happy with the fxgt service from OandA, but I guess I would be interested in this service from you now. I know that XE.com also had a similar service, but not sure if it is still going or not. You may want to investigate that too.

Please keep us updated.
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Old 02.11.2012, 14:52
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Re: FX Money Transfer Service - To save your Business Money

In fact, the XE.com service does seem to still exist:

http://www.xe.com/xetrade/

I did set up accounts with both XE and OandA, but never used XE as it seemed rather more complicated at the time (3-4 years ago). Looks like I will have to see if my account still works!
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Old 02.11.2012, 15:35
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Re: FX Money Transfer Service - To save your Business Money

I understand that you maybe able to offer a 1% improvement over what banks currently offer, but you have to live and your partners and their b ank want to eat 3 meals a day.....

10'000.-- is 1% of 1 million

You also need to get people to trust in the system which for international people may not be so much of a problem,. but for conservative Swiss people.....who happens to have done their m,ilitary service with the local bank manager.

Good luck !
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Old 02.11.2012, 15:59
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Re: FX Money Transfer Service - To save your Business Money

Working in this industry, I think Zurich would be a hard place to get this going.

Nearly everybody who is a permanent employee of a bank here gets margin free (or extremely close to) FX through their employer, which already eliminates a good slice of your market.
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Old 02.11.2012, 16:03
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Re: FX Money Transfer Service - To save your Business Money

Quote:
I understand that you maybe able to offer a 1% improvement over what banks currently offer, but you have to live and your partners and their b ank want to eat 3 meals a day.....

10'000.-- is 1% of 1 million

You also need to get people to trust in the system which for international people may not be so much of a problem,. but for conservative Swiss people.....who happens to have done their m,ilitary service with the local bank manager.

Good luck !
To me, the prime opportunity here is not the Swiss but all the expats - it is us who want to transfer money from the motherland to Switzerland when we first move here, who may still have investments and want to bring over the income whilst we are here, who could be transferring quite big amounts of savings to use for a house deposit, or if we decide to move on will then need to get our meagre savings out of Switzerland again.

Given the number of well paid, intelligent and financially savvy people there are in the expat community here, it wouldn't surprise me at all if there was a significant market here happy to avoid being ripped off by their bank on these kind of international transfers.

Asking on the English Forum seems like a perfect way to me to gauge the market...
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Old 02.11.2012, 16:44
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Re: FX Money Transfer Service - To save your Business Money

AFEX offer a very good service and at better rates than our bank and they have a base here in Switzerland. I think you'd have a lot of work to do to grab much of a market share from them and the banks.

But if you have the energy and drive then give it a go, and good luck!
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Old 02.11.2012, 16:49
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Re: FX Money Transfer Service - To save your Business Money

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To me, the prime opportunity here is not the Swiss but all the expats - it is us who want to transfer money from the motherland to Switzerland when we first move here, who may still have investments and want to bring over the income whilst we are here, who could be transferring quite big amounts of savings to use for a house deposit, or if we decide to move on will then need to get our meagre savings out of Switzerland again.
...
and all of this can still be done with oanda, which I would trust more than a "startup" for want of a better word. (famous last words)
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Old 02.11.2012, 16:52
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Re: FX Money Transfer Service - To save your Business Money

Read today that the Swiss government is cracking down on Western Union and other such money transfer services, as they are increasingly used to launder money. So be careful. Good luck, but I would not use such a service without the backing of a stable and official organisation, with 'everything above board' guarantee.
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Old 02.11.2012, 16:54
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Re: FX Money Transfer Service - To save your Business Money

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Read today that the Swiss government is cracking down on Western Union and other such money transfer services, as they are increasingly used to launder money.
I guess this is the " increasingly complex regulatory environment," that has caused oanda to shut down its "pay anyone" money transfer AKA "FXGlobalTransfer"
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Old 02.11.2012, 18:52
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Re: FX Money Transfer Service - To save your Business Money

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I understand that you maybe able to offer a 1% improvement over what banks currently offer, but you have to live and your partners and their b ank want to eat 3 meals a day.....

10'000.-- is 1% of 1 million

You also need to get people to trust in the system which for international people may not be so much of a problem,. but for conservative Swiss people.....who happens to have done their m,ilitary service with the local bank manager.

Good luck !
Correct, but if I had quite a few transactions every day then the model becomes viable.
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Old 02.11.2012, 18:55
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Re: FX Money Transfer Service - To save your Business Money

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AFEX offer a very good service and at better rates than our bank and they have a base here in Switzerland. I think you'd have a lot of work to do to grab much of a market share from them and the banks.

But if you have the energy and drive then give it a go, and good luck!
Great link - thanks! My service would be the same as theirs. I think once a stable business model has been built, then its all about marketing.. and I can already see ways to improve on theirs (as with the rest of them out there).
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Old 02.11.2012, 18:56
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Re: FX Money Transfer Service - To save your Business Money

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Read today that the Swiss government is cracking down on Western Union and other such money transfer services, as they are increasingly used to launder money. So be careful. Good luck, but I would not use such a service without the backing of a stable and official organisation, with 'everything above board' guarantee.
Thank you for drawing this to my attention. I think it is great that the Swiss Government re clamping down on the "Western Union" types - the margin they charge is ridiculous. Even the normal high street bank rates are bad in this day and age..
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Old 02.11.2012, 18:57
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Re: FX Money Transfer Service - To save your Business Money

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To me, the prime opportunity here is not the Swiss but all the expats - it is us who want to transfer money from the motherland to Switzerland when we first move here, who may still have investments and want to bring over the income whilst we are here, who could be transferring quite big amounts of savings to use for a house deposit, or if we decide to move on will then need to get our meagre savings out of Switzerland again.

Given the number of well paid, intelligent and financially savvy people there are in the expat community here, it wouldn't surprise me at all if there was a significant market here happy to avoid being ripped off by their bank on these kind of international transfers.

Asking on the English Forum seems like a perfect way to me to gauge the market...
good spot sir!
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