Problems with Wise transfers to Bangkok Bank

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2lz2p
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Re: Problems with Wise transfers to Bangkok Bank

Post by 2lz2p »

I am well aware that allowing your US bank to convert dollars to baht before transferring funds will result in receiving a much lower exchange rate. Wise's exchange rate as well as that used by Bangkok bank if they convert the US dollars, are much more favorable.

One of my concerns in using Bangkok Bank NY Branch's service, since they are based in USA, is that they might also use an unfavorable rate if they convert it to baht (US$10 fee) which might make it better to have them do it in US dollars (US$55 fee) and get Bangkok Bank here in Thailand's exchange rate. Now that the transaction has been made, I was very pleased to find that Bangkok Bank NY uses an exchange rate that appears to be close if not the same one would get if funds were transferred in US dollars and converted by Bangkok Bank here.

The following were the exchange rate for 3 deposits to my account this month - one by Wise, one by Bangkok Bank here in Thailand, and the one by Bangkok Bank NY.

-- On 1 November I transferred money using Wise. The exchange rate was 33.335 - with a fee deducted of $17.99

-- On 8 November, Bangkok Bank here rec'd a US dollar transfer from my health insurance (reimbursement for a claim). The exchange rate Bangkok Bank used was 32.93 with a fee of 200 baht

-- On 11 November, Bangkok Bank NY converted my US dollar payment to them for transfer to my account here in baht. The exchange rate was 33.29 ($2,240 converted to 74,569.60 baht) and a fee of $10 & 200 baht

For me, the cost is is the fees charged by Wise or Bangkok Bank NY as they are the methods I will use to transfer my 65k+ monthly to Bangkok Bank and receive their FTT code, which gives me the proof I need for Immigration.

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Jun
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Re: Problems with Wise transfers to Bangkok Bank

Post by Jun »

2lz2p wrote:
Sun Nov 14, 2021 6:48 pm
For me, the cost is is the fees charged by Wise or Bangkok Bank NY
You're entitled to use whatever method you like for your own analysis.

However, please understand that if making a like for like comparison, most others will consider the cost to be the total cost, including sending bank fees, forex losses and receiving bank fees. No matter what it is called, it's still money we lose.

As an analogy, if considering only fees, the Bangkok gogo bars are terrific value, with no entry fee at all.

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Re: Problems with Wise transfers to Bangkok Bank

Post by 2lz2p »

Jun wrote:
Sun Nov 14, 2021 7:11 pm
2lz2p wrote:
Sun Nov 14, 2021 6:48 pm
For me, the cost is is the fees charged by Wise or Bangkok Bank NY
However, please understand that if making a like for like comparison, most others will consider the cost to be the total cost, including sending bank fees, forex losses and receiving bank fees. No matter what it is called, it's still money we lose.
Yes I am entitled to use whatever analysis I prefer. The only item that differs in my analysis approach and yours is so called "forex losses". I doubt that any such losses have a bearing on most individuals decision to use a particular service or that it actually involves a "loss" since most must choose a particular service available to them. Wikipedia has the following comment about the "forex market" (https://en.wikipedia.org/wiki/Foreign_exchange_market):

As mentioned, I am interested only in my out of pocket expenses for making the transfers I need to make and the difference in exchange rates by the services I will be using to make the transfer. Not in any any additional loss calculation comparing the exchange rate to an international exchange market rate which has no bearing on those out of pocket costs.

Thus, for me the costs are the bank fees and exchange rate differential between the service I have available to me. The cost for my first transfer using Bangkok Bank NY was 530 baht not 2,000 baht (I still don't know how you came up with that particular number as you did not show an example of how it was calculated). As to exchange rate differential, it appears to be slightly more favorable than that offered by Wise.

Contrary to your comment
most others will consider the cost to be the total cost, including sending bank fees, forex losses and receiving bank fees.
(emphasis added)

I expect that most will only be interested in considering the sending bank and receiving bank fees and the exchange rate differential between the the services they have available to them to make their transfer.

Further, my starting this thread was for those that are mostly concerned with getting the FTT code to prove the funds came from outside of Thailand. For others using the 800k method or able to get an Embassy certification letter to give Thai Immigration, it is a moot point.

They now, I believe, have sufficient information on our differing views as to what the cost will be if they choose to use Bangkok Bank NY. They are free to choose whatever method they want to calculate their cost and make their decision as it relates to their particular circumstance.

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