Best way to transfer USD $50,000 to Australia

I had to internationally transfer a similar amount only once, to the philippines.

citibank's conversion rates were AWFUL, and it would have been really expensive on a significant dollar amount. the wire transfer fees are pretty trivial at this point.

I ended up using xetrade, which was actually kind of a pain (took a couple of weeks to complete the transfer, lots of followup forms that they didn't inform me I needed up front). But it worked. I also talked with torfx some, they're more "hands on" with their customer service angles, so you can't just get a quote on a website... but they were at least upfront about the paperwork required.

fatwjr said:   - Citibank Global Transfer
- HSBC
- XE.com
- IB
- Plain wire transfer

Would appreciate any information.
Do note Citi Global Transfers are subject to daily/weekly/monthly limits:
https://online.citibank.com/US/JRS/pands/detail.do?ID=InterCiti

Otherwise, it should be the cheapest since you won't get dinged with both inbound AND outbound transfer fees---provided you have easy access to a Citi branch in Oz.

If it's a one-time deal, just do it through wire transfer and get it over with.

I actually sent money from australia to the us by opening PayPal accounts in each country. It was a bit of a pain for it was cheaper for small amounts than anything I could find. For $50k though I'd say you'd want something pretty different. Loved Australia though, super jealous!

I spoke to a US Bank account manager: sending an international wire transfer from a US Bank account is a fixed $50 fee, regardless the amount of money sent. The currency conversion rate and receiving fees would depend on your Australian bank.

Western Union would be very expensive. PayPal would also be expensive and not be a reliable way to transfer your money (i.e. what would you do if they freeze your account or place a hold on the payment?). I also believe it may be against their TOS to send money to yourself, but I don't remember for sure.

You don't specify how quickly you need the funds. Why not drop half of it in Schwab and half of it in Fidelity and pull their maximum ATM limit each day? If you have a spouse, you could create two accounts with each brokerage, and you'll be done inside of a month.

wire transfer

Look into xoom.com. I see ads for them all the time.

sabhinav said:   Not sure if this will work. Open a Forex trading account with global brokerage house like Interactive Brokers. Buy AUD and in the process get the best exchange rate, open a IB Australia account, link the US account and transfer assets. Disclaimer: I am just throwing this idea there, have no clue whether this is going to work.
Bingo. That is the absolute cheapest.

Certainly this works with IB in other parts of the world, but whether it works for AUD depends on whether IB has an Australian bank. The answer is most likely yes, because they trade in the Australian stock exchange (ASX).

Note that IB is also the only transparent way to exchange currency. Other FX brokers who work with deliverable assets hide their fees in various ways - usually by padding it into the exchange rate and not using a realtime market for the trade. An IB trade is $2.50 (min. $10/month), plus a ~2 pip spread on the realtime market exchange.

kvs25 said:   Look into xoom.com. I see ads for them all the time.

Xoom has transaction limits and 30 and 180 day total dollar transaction limits. Advantage is the fee is only $5. Disadvantage is it's probably not best for large sums. Their website says one can apply for higher limits, but I think they would be hesitant with a new customer.

unimeg said:   I actually sent money from australia to the us by opening PayPal accounts in each country. It was a bit of a pain for it was cheaper for small amounts than anything I could find. For $50k though I'd say you'd want something pretty different. Loved Australia though, super jealous!

For Paypal customers in the U.S. they only let you link U.S. bank accounts. It must be some U.S. regulation. It would be a convenient way for someone to move money between accounts they have in different countries if possible if you didn't mind the spread Paypal takes in converting currencies. Even if it was possible I would only do it in small amounts. Paypal probably would end up freezing your account otherwise.

ubermichaelthomas said:   Hide it in the pouch of a kangaroo. Then just tell Customs that you're returning her to her natural habitat.

Why the red? It's a joke dude.

Can't you just open an account here with a bank that is also in Australia and move the money there? Citi, HSBC, etc. That way if the job doesn't work out, you don't get hit moving the money in both directions.

I guess then it depends on if you think the Aussie $ will increase or decrease vs the American $. If you think the Aussie will go up, you'll want to move it all now. If you think the American $ will go up, then you want to trickle it over as needed.

fatwjr said:   Regarding XETrade, how does their rate compare to wire transfer?

If I want to send onetime USD $50,000 using XeTrade vs Wire Transfer, what will be the difference in the cut?

Re: Wire Transfer, I think we can ask to convert the USD upfront to AUD (australian dollars). Will this make any difference?Ask your bank what the fees will be. Then go online with XeTrade and they will show you exactly what they will deliver to the account in Oz

Been almost 5 years since I was there, but XeTrade was a huge difference.

Why don't you investigate and post back with what you found

fattywallace said:   
XE and XOOM are only good for small amounts, 2K to 3K at most, otherwise the exchange they offer will literally kill you. Wire transfers are the most safe, legit and profitable way to do considerable amounts.XE exchange rates have a smaller spread than wire transfers and have no additional fees. How does the exchange rate kill you?

fatwjr said:   chibimike, thanks for the suggestion.

CitiBank indeed has Citi Global Transfer which allows you to transfer money from USA's Citibank account to Australia's Citibank, and many other countries. However, from reading the Fatwallet Forum - while it is free, Citibank dings you in the exchange rate. One FW-er, I read, that moved money from Citibank USA to Citibank India, noted that the exchange rate difference is 4% compared to the actual exchange rate.

Not sure about HSBC though...

yea citi forex is horrible, and you are doing it wrong if you just transfer it from a US USD account to a AU AUD account.

when you are in AU, set up an USD account in the citibank. this way, you have no forex done by citi, thus, totally cost free to move your money.

now you need to find a money changer in AU to exchange that.