Share this content
7

Trading in dollars

Recommendations on how to best go about this?

Didn't find your answer?

UK company with a number of customers and suppliers paying in dollars. 

What recommendations do people have for the best/most cost effective way in trading in dollars?

Setting up a US dollar account with a UK bank seems expensive due to bank charges.   Using transferwise seems a good alternative - has anyone used these or any other providers?

Thanks for any suggestions

Replies (7)

Please login or register to join the discussion.

avatar
By bettybobbymeggie
14th Jul 2020 08:16

PayPal?

Thanks (0)
Replying to bettybobbymeggie:
avatar
By SDGREEN
14th Jul 2020 09:25

Thanks - Paypal seems a bit pricey

Thanks (0)
avatar
By paul.benny
14th Jul 2020 09:19

Starling have just launched a USD business account for existing customers. £5/month fee

Thanks (1)
Replying to paul.benny:
avatar
By Justin Bryant
14th Jul 2020 13:17
Thanks (0)
Caroline
By accountantccole
14th Jul 2020 10:47

Forex companies will almost always give you a better rate than banks
I've had clients moving funds from HSBC euros to HSBC GBP at same branch who save a few hundred each time they move £20k, by using an agent
Revolut seem to be quite interesting at the moment

Thanks (0)
avatar
By johnt27
14th Jul 2020 15:18

Use TransferWise - it's the best, most cost effective option out there with plenty of challengers who just fall short! If you need to take card payments from customers in USD then use Stripe or PayPal and connect to a TransferWise account to do the conversions as they will charge you considerably higher costs. I have a few clients doing this saving £1,000's

Thanks (0)
avatar
By Accountant101A
14th Jul 2020 17:25

If the company has both income and costs in dollars it is definitely worth having a USD account so that they can be offset against each other. This keeps forex trades minimized, which is where most of the cost is, as opposed to account fees. It's worth looking at a TransferWise account if a traditional bank account is too expensive.

When trading currencies with a broker agree a fixed margin % (difference between spot and offered rate) and always check it for every trade! Many brokers offer very good rates to begin with then increase the margin when you trade next time. Transferwise are more transparent about their rates but aren't necessarily the most competitive.

Thanks (0)
Share this content

Related posts