Money exchangee wondered

[aot871]

AS some one who brings cash to thailand , I have wondered, how guys change money , ie Enough to last a week, and then a few days at a time or enough to last the whole holiday

[Yraen]

Get yourself a plastic ATM/Debit card linked to your home account. Then draw down money in 10,000 or 20,000 Baht amounts.
Expect to pay B 150 - 200 per withdrawal as banks in LoS have found another easy way to gouge foreigners.
Generally speaking, ATM exchange rates (ER) are among the best available.
Personal Opinion: I would not have large amounts of foreign and Thai cash in my wallet or my hotel room. That is just fool-hardy.

However, if you have an at-home surplus of cash and it makes sense to use it, find a SuperRich currency exchange for the highest rates.
Withdrawing cash from your home account to exchange after arrival in LoS (a) is fool-hardy, and (b) does not give the best ER.
If you shop around in your home town, the ER for Baht may be beneficial and you have Baht in your pocket when you arrive.
All ER are available on the Internet.

[christianpfc]

One of the subjects that come up regularly and is better treated in kind of a wiki. I made an attempt here:
http://christianpfc.blogspot.com/2016/07/money-exchange.html

I exchange enough for 2-3 weeks (I don't frequent areas that have exchange booths with good rates, so I have to plan my trips there in combination with other activities in the area, and I only spend about 10 kTHB per week).


Generally speaking, ATM exchange rates (ER) are among the best available.

Not in my case. Last time I withdraw from ATM, I lost about 2.5% compared to exchange booth (1% from 200 Baht fee for 20 kTHB withdrawal and 1.5% poor exchange rate).

That brings me back to a recommendation on a recent tread on the same subject: when I withdraw with Visa card, the transaction is shown only two days later on my bank statement (online banking, I checked immediately, following morning, evening: nothing).

[Old git]

1) Open an account with the Bangkok Bank (the others can be a bit fussy with farangs) you will need your passport and a Thai correspondence address. You will be given an account book and a Be1st debit card on the spot.

2) Use a specialist currency transfer outfit to move funds (I use SAT Worldwide) DO NOT use a UK high street bank, unless the amount is less than £1k. They will cut a deal for you that is at the published rate, and make their money from a flat service charge.

You BACS them the funds and they forward the THB to your BB A/C

3) You then draw funds as needed from Thai ATMs - there is no 200 baht fee.

This way I get over 99% efficiency in converting GBP in my UK A/C to THB cash

[christianpfc]

Re above post. Fees for wiring money depend on home bank, and my home bank can't send money to Thailand at all! For ATM withdrawal you have combination of home bank, home currency, and bank at whose ATM you withdraw THB that determines how much you lose.

When exchanging cash, rates are better than everything else I tried and there is only one variable (where to exchange cash).

[fountainhall]

Like christianpfc I wonder how many times this subject has come up on all the Boards in recent years!

If someone is visiting Thailand regularly (at least once a year) surely the best way is to open an account in Thailand. I realise not all banks and branches will do this for non-residents, but others do. Then you transfer your cash in one lump sum in your home currency (never convert with the outgoing bank). Agreed there will be one quite high transfer fee. Against that you have freedom of mind and complete ease of accessing any ATM anywhere (apart from a Bt. 25 fee when you withdraw from a different Province).

I used to withdraw using my overseas bank's debit card at its branch in Bangkok. But the exchange rate fees completely offset any benefit. I hear that some banks/building societies in the UK have very reasonable rates but certainly that doesn't happen where my banks are based.

It always amazes me that some visitors will happily spend Bt. 60-70 on the Skytrain or more on taxis to get to a SuperRich exchange just to cover expenses for a few days. Change $500 at Krungsri today and you will get Bt. 17,525. At SuperRich you will get Bt. 17,675. Is that extra Bt. 150 really worth the time and money to get there? If you are changing in excess of $1,000 the benefit is certainly more favourable - provided you have somewhere safe to keep the cash.

[arsenal]

Travellers cheques were always my preferred way to carry funds when I lived in The UK. Easy, cheap. 100 per cent safe...what more do you want?

[Oliver]

I used travellers'cheques for seventeen years but stopped doing so two years ago for the following reasons. Firstly, the charge per cheque went up to 150bht. Secondly, long waits while the teller made phone calls held -up both me and disgruntled people in the queue.. And thirdly, the exchange rate on offer elsewhere was better.

[arsenal]

Oliver wrote:
"I used travellers'cheques for seventeen years but stopped doing so two years ago for the following reasons. Firstly, the charge per cheque went up to 150bht. Secondly, long waits while the teller made phone calls held -up both me and disgruntled people in the queue.. And thirdly, the exchange rate on offer elsewhere was better."

I haven't used them for many years, the fee used to be 30 baht and there was never any phone call needed, just my passport. The 150 baht fee wouldn't worry me as I'm only cashing perhaps 6 at 200 pounds each which is 900 baht and worth it for the peace of mind. Slightly better exchange rates too if I remember.

[Old git]

"When exchanging cash, rates are better than everything else I tried and there is only one variable (where to exchange cash)."

Next time you're changing cash, note the difference between the buy rate and sell rate for notes - and see how far adrift the average of the two is from the buy rate - that's what your losing on the deal when you change cash.

My method is far more efficient..

[fountainhall]

Use a specialist currency transfer outfit to move funds (I use SAT Worldwide) DO NOT use a UK high street bank, unless the amount is less than £1k
My UK high street bank charges a flat fee irrespective of amount. I transferred £10K prior to the Brexit vote and it cost £30. Would SAT be cheaper?

[francois]

For anyone visiting once or twice a year for short periods, just bring cash and exchange it or use your ATM card to withdraw funds when needed. Of course make larger withdrawals rather than multiple smaller ones in order to avoid 200 Baht fee.

For expats and long term visits it may be more beneficial to open a Thai bank account and transfer money from you home country bank.

PS- the OP was specific in his post, he wanted advice on those who bring cash.

[Up2U]

Actually there is not a best answer to this recurring question. The OP apparently is a Brit so his options are probably different than others. As an American, I would never consider exchanging cash and if you mentioned travelers checks you probably came from a different planet. I have never been inside a bank in 20 years (except to open Thai bank accounts here), I use ATM's exclusively and bank online. I get the best exchange rates (VISA/MASTERCARD network and yes better than Superrich), the 200 baht ATM is reimbursed and pay no percentages or foreign transaction fees. I realize many Brits and Europeans don't have these options so as others have mentioned I would use Superrich locations in Bangkok.

[sglad]

1) Open an account with the Bangkok Bank (the others can be a bit fussy with farangs) you will need your passport and a Thai correspondence address. You will be given an account book and a Be1st debit card on the spot.

Yeah our class facilitator took us to Bangkok Bank last year where it was too easy to open a savings account with a debit card. I had brought some Thai Baht for my expenses over the first few days but I had mostly Singapore Dollars which I then changed and deposited into my BB account. I did the same thing this year and changed my SGD to Thai Baht at Superrich money-changer somewbere near the night bazaar (we passed by some "lady" bars and got the obligatory "hello hansum man" 5555). They gave us better rates than those exchange kiosks you see everywhere, the money-changer that is, not the lady bars.:D

[goji]

This way I get over 99% efficiency in converting GBP in my UK A/C to THB cash

That is good advice.

Also getting over 99% is a good target.

Another way is to take a wad of £50 notes, change at one of the best currency exchange shops in town and then pay it all into your Thai bank using one of the automatic paying in machines.
On my recent trip, I got 44.95 baht to the £. The XE rate was 45.35, so I got 99.1% efficiency.


The key is to know what the best level rate is and get close to that, not throw away 2% more. Once you have a good idea where the best exchange rates can be had, it takes almost no effort.

Here is a good starting point.
https://daytodaydata.net/

As I write this today, you do not get 99% efficiency from the best places on that list , but it looks like the pound has rallied after normal Thai banking hours. I guess they will be back to competitive rates swiftly.

[aot871]

Yes I am a brit , and only visit twice a year for approx. 2 or 3 weeks. When I first starting coming it was trav cheques , then went onto using atm but the bank charge of 150 and the uk end charge of 2.75% for overseas use , stopped that , so now I only bring cash , and use the yellow fronted exchange shops in pattaya

[gerefan2]

Aot871
I do exactly the same but I opened an account at the Kasicorn Bank and after changing my pounds I put the lot into the Bank and use the card to withdraw it whenever I need to.it is so simple to open the account as others have said.
However, I do stay for 3 months in the winter so I don't want all that cash in my room safe.

[christianpfc]

"When exchanging cash, rates are better than everything else I tried and there is only one variable (where to exchange cash)."

Next time you're changing cash, note the difference between the buy rate and sell rate for notes - and see how far adrift the average of the two is from the buy rate - that's what your losing on the deal when you change cash.

My method is far more efficient..
Indeed I check the spread between buy and sell at money exchange booths. In Thailand it can be under 1%, in airports in Europe I saw spreads of 30%.

In your particular case you might get a better rate than I do, but your method is not generally applicable as it works only for your combination of home currency and home bank.

Currently on Superrich, Euro 100-500 notes: buy 37.6; sell 37.65; that's a spread of 0.13%;
xe.com 37.71 THB for 1 Euro; that means on superrich I lose 0.3% versus xe.com.

[fountainhall]

Indeed I check the spread between buy and sell at money exchange booths. In Thailand it can be under 1%, in airports in Europe I saw spreads of 30%.
The spread at the exchange booths at Bangkok's airports has just got higher and higher. They used to be the same as in town. Now the spread seems to be around 10%. Same at the official money changers in Hong Kong. There, always change cash at a bank's foreign exchange counter for far more favourable rates.


Currently on Superrich, Euro 100-500 notes: buy 37.6; sell 37.65; that's a spread of 0.13%;
xe.com 37.71 THB for 1 Euro; that means on superrich I lose 0.3% versus xe.com.
I always thought the xe rates are midpoint interbank rates. So currency exchange buying and selling rates will very.

[francois]

Yes I am a brit , and only visit twice a year for approx. 2 or 3 weeks. When I first starting coming it was trav cheques , then went onto using atm but the bank charge of 150 and the uk end charge of 2.75% for overseas use , stopped that , so now I only bring cash , and use the yellow fronted exchange shops in pattaya

To answer your original question, I know of two guys who come once a year and both bring cash to exchange. One guy just makes one exchange at beginning of his trip while the other makes exchanges as Thai Baht is needed. A lot may depend on how the exchange rate is trending, up or down.

[Oliver]

The two booths in 2nd Road near Boyztown have been a godsend. I wonder why their exchange rates are so much better than others in Pattaya? The Bangkok booths don't compare.

[Old git]

"My UK high street bank charges a flat fee irrespective of amount. I transferred £10K prior to the Brexit vote and it cost £30. Would SAT be cheaper?"

Yes, because the High St banks shaft you on the exchange rate as well as charging a fee.

[fountainhall]

Yes, because the High St banks shaft you on the exchange rate as well as charging a fee.
Not in this case because I transferred the sterling amount. The exchange was done in Bangkok at preferential rates.

[gerefan2]

To answer your original question, I know of two guys who come once a year and both bring cash to exchange. One guy just makes one exchange at beginning of his trip while the other makes exchanges as Thai Baht is needed. A lot may depend on how the exchange rate is trending, up or down..

You can add me to that list too.
If I am on my usual December to March stay I change it as soon as I arrive.
I've noticed over the last 10 years that the amount of baht I get reduces from December onwards. It has happened every year since I've been coming.
I used to think that the Thais were doing it deliberately in high season! However I may not be far off the truth as the Baht must strength during high season.
Just look at the Baht/Pound this year since December and it's not just Brexit!

[goji]

The spread at the exchange booths at Bangkok's airports has just got higher and higher. They used to be the same as in town. Now the spread seems to be around 10%.

I always thought the xe rates are midpoint interbank rates. So currency exchange buying and selling rates will very.You can get an outstanding rate in the airport, just downstairs in the SRT rail station. About 8 booths, very competitive.


To answer your original question, I know of two guys who come once a year and both bring cash to exchange. One guy just makes one exchange at beginning of his trip while the other makes exchanges as Thai Baht is needed. A lot may depend on how the exchange rate is trending, up or down.
I know that I'm not smart enough to figure out which way it will move, short term, but I am smart enough to know where to find a good rate on the day. So I change it all in 1 go. Over my lifetime, this will even out.

Whilst I have no clue about the short term, with a little more confidence, I predict a weakening pound over the long term, just due to all the imports and debt we're rolling up.


The two booths in 2nd Road near Boyztown have been a godsend. I wonder why their exchange rates are so much better than others in Pattaya? The Bangkok booths don't compare. I think you mean the yellow TT booths. They are a competitive independent and the other more expensive places survive because most tourists are too idle to keep their eyes open and spot a good exchange rate.
Bangkok booths DO compare, but you just need to look out for something like SuperRich. The one by the Subway/KFC at Sala Daeng didn’t seem to be open, but there are other locations which you can find on their website. Convenient enough, but not so many that you are constantly walking past them.

[goji]

Use a specialist currency transfer outfit to move funds (I use SAT Worldwide) DO NOT use a UK high street bank, unless the amount is less than £1k.

Just to demonstrate why we should NOT use a UK high street bank, I transferred £4500 from the Nationwide to a bank in another ASEAN country last week. The first time I tried that method & probably the last. I wanted to move a modest sum.

There was a transaction fee of £20.
A 2.5% loss on the exchange rate.
Plus a fee to the receiving bank.
Total losses = 3.06%.

My losses for changing cash to that countries currency and manually paying in when I was there were 1.1% (thanks to google, I believe I may have used very competitive forex booths in that country).

My losses for changing cash to Thai baht at Superrich and paying into a Thai bank account were under 1%.


About a week earlier, I applied on line for a currency transfer service at one of the known forex specialists, but the on line application process fell over and some incomprehensible person from their call centre phoned me. I shall not be using them, but need to find one I can trust.

I believe money transferred by this type of company is not protected, however the FCA authorised transfer specialists are supposed to ring fence the money so no one takes it if they go bust mid transaction.

[goji]

I opened a forex account at Moneycorp & got a quote on moving £5000 to a SE Asian country.
Total loss = 2.28% on Moneycorp side (including fees).
Slightly better than Nationwide, but nowhere near the benchmark provided by Old Git. Also not as good as taking a wad of cash.

Needless to say, I shall not be using Moneycorp.