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Moneybookers Ltd is a financial transactions company registered in England and Wales under Company No 4260907.
A sample of statements from their website is shown below.
Note that, like all other foreign exchange companies, there is a “Hidden Charge” in the “exchange rate” that is used for your financial transfers.
Moneybookers actually state this figure as being 1.99% above their wholesale rate. Other companies may charge as high as 4% or even as low as 0.5%.
Those currency margins are the reason why they can claim to only charge a fee of € 0.50.
Take an example of £20,000 transferred at three possible rates, with the official rate of the day being 2.00 to the £
1: 1% margin + $20.00 fee = $39,580 received
2: 1.99% margin + $0.50 fee = $39,203.50 received
3: 4.00% margin but FEE FREE $38,400 received
You will see that the option with the lowest fee is actually the worst, but the one with the highest fee is the best.
This post is to aid in pointing you in the right direction to check the final result, and not just the quoted fees, when arranging your foreign exchange.
From the moneybookers website (23 June 2011)
Q: Can I send money to someone who is not a Moneybookers member?
A: Yes, the recipient does not need to be a member at the time of sending the money but he needs to register at Moneybookers in order to collect the money sent to his email address.
Q: What exchange rates do you apply if I send money in another currency or to an account in another currency?
A: For transactions involving currency conversion Moneybookers adds 1.99% to our wholesale exchange rates for foreign currency. This charge serves as a protection against the volatility and risk associated with FX markets. The Moneybookers exchange rates are updated on a regular basis throughout the day.
Q: What does it cost to send money?
A: Our regular fee is 1% (up to € 0.50) per Transfer. Additional fees may apply depending on your account status.