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  #61  
Old 09.09.2021, 17:07
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Re: Transferring large amount of cash from UK to CH - advice needed!

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I would suspect the same but in this case there was no exchange as it was a GBP to GBP transfer. If it were me I’d still be nervous about the potential ‘creativity’ that may be applied by intermediaries on the way, converting from and back to the starting currency with some amount disappearing into the ether!
Forgot to address the intermediary fees in my previous post.

That's definitely a concern, but there is no bank that can guarantee you will receive the full amount. I checked with Revolut, other digital and high street banks, and they all say they can't guarantee the beneficiary bank is not using intermediaries.

Hence, it basically makes no difference whatever bank / provider you use in the UK.

I called my Swiss Bank in advance and inquired about intermediary fees. They said the don't use any intermediaries, but they can't guarantee that the UK bank doesn't either.

I personally had no issues and no fees were collected on my order.
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  #62  
Old 09.09.2021, 17:08
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Re: Transferring large amount of cash from UK to CH - advice needed!

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The FX rate is certainly less convenient, but at the end of the day the difference is not massive.

Real example with current rates & fees, if you were to transfer £50,000 today.

Revolut to Swiss Bank: you will receive CHF 63,344 (incl. fees CHF 315.76 & 1 CHF = £0.7854)

MetroBank to Swiss Bank in GBP, then converted within the same Swiss bank: CHF 63,102 (incl. transfer fee from Metrobank of £25 = approx. 32 CHF)

Revolut is cheaper by CHF 242 (let's remember, we are transferring £50k, not 5k).

Personally, I am happy with spending a bit more but use a high street bank.

PS: In case you were wondering, when transferring £100k the difference would be approximately CHF 360.
So let’s assume that making the exchange with Interactive Brokers would save you approximately CHF 314. This amount invested in equities for 30 years with an annual return of 5.5% (close to the inflation adjusted return) would be CHF 1’565. Using an annual return of 13% (if I’m not mistaken this is close to Fundsmith’s annual return in CHF since inception), then the figure is CHF 12’282.
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  #63  
Old 09.09.2021, 17:17
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Re: Transferring large amount of cash from UK to CH - advice needed!

Interactive brokers: 63,567CHF (@17h17)
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  #64  
Old 09.09.2021, 17:25
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Re: Transferring large amount of cash from UK to CH - advice needed!

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So let’s assume that making the exchange with Interactive Brokers would save you approximately CHF 314. This amount invested in equities for 30 years with an annual return of 5.5% (close to the inflation adjusted return) would be CHF 1’565. Using an annual return of 13% (if I’m not mistaken this is close to Fundsmith’s annual return in CHF since inception), then the figure is CHF 12’282.
You are not wrong but let's put it into perspective.

If you manage to get a 13% annual return on your CHF 63,000 you are looking at CHF 2.5 million after 30 years.

That kind dwarfs the 12k difference, even if it is an important sum of money for a lot of people (incl. myself).

I am not arguing that using a high street bank is definitely the best approach. Revolut is definitely cheaper!

Personally, I would rather avoid potential headaches with Revolut when transferring tens of thousands of pounds. I am faint of heart

By the way, I never advised against IB. My original comment was about Revolut / Wise. I am sure it's quite different with IB.
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  #65  
Old 09.09.2021, 20:04
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Re: Transferring large amount of cash from UK to CH - advice needed!

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You are not wrong but let's put it into perspective.

If you manage to get a 13% annual return on your CHF 63,000 you are looking at CHF 2.5 million after 30 years.

That kind dwarfs the 12k difference, even if it is an important sum of money for a lot of people (incl. myself).

I am not arguing that using a high street bank is definitely the best approach. Revolut is definitely cheaper!

Personally, I would rather avoid potential headaches with Revolut when transferring tens of thousands of pounds. I am faint of heart

By the way, I never advised against IB. My original comment was about Revolut / Wise. I am sure it's quite different with IB.
I can understand your trepidation with regards to Revolut. I would feel much the same although some of the comments on this thread have assuaged my concerns somewhat. However, Interactive Brokers cannot be compared to Revolut. Once you jump through the couple of hoops to setup an account there’s no looking back.

You commented that the ‘difference is not massive’. The purpose for my example was to highlight what the potential saving actually equates to when seen from another perspective.
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  #66  
Old 09.09.2021, 20:19
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Re: Transferring large amount of cash from UK to CH - advice needed!

I have no idea why people even recommend IB here.

Last time I called them in 2017 from the UK to open an account, it was nearly impossible.

You either have to have $500k or license to trade futures.
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  #67  
Old 09.09.2021, 20:22
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Re: Transferring large amount of cash from UK to CH - advice needed!

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I have no idea why people even recommend IB here.

Last time I called them in 2017 from the UK to open an account, it was nearly impossible.

You either have to have $500k or license to trade futures.
Many of us on the forum have accounts with IB. I found the process very straightforward as a Swiss resident.
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  #68  
Old 09.09.2021, 20:27
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Re: Transferring large amount of cash from UK to CH - advice needed!

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Many of us on the forum have accounts with IB. I found the process very straightforward as a Swiss resident.
OP is not ?
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  #69  
Old 09.09.2021, 21:14
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Re: Transferring large amount of cash from UK to CH - advice needed!

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OP is not ?
Based on their location, they appear to reside in Switzerland. Even for UK residents, I don’t believe it’s that difficult to open an account.
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  #70  
Old 09.09.2021, 22:04
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Re: Transferring large amount of cash from UK to CH - advice needed!

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Based on their location, they appear to reside in Switzerland. Even for UK residents, I don’t believe it’s that difficult to open an account.
I guess it's important thing to be aware of.

Good luck opening IB account as the UK resident
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  #71  
Old 09.09.2021, 23:45
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Re: Transferring large amount of cash from UK to CH - advice needed!

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You either have to have $500k or license to trade futures.
Per their webpage the account minimum is 0
https://www.interactivebrokers.co.uk...ex.php?f=38234

Perhaps they misunderstood that you wanted to trade futures?
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  #72  
Old 10.09.2021, 15:42
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Re: Transferring large amount of cash from UK to CH - advice needed!

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You either have to have $500k or license to trade futures.
You can't pay in until after you've actually opened it.
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