Bank charges on international payments - Money Mover · fees for international payments and...

Bank charges on international paymentsAn analysis of the UK SME market

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Published on January 11 2016

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Contents1. ExecutiveSummary...................................................................................................................3

2. SMEinternationalpaymentsmarketoverview.........................................................................4

2.1. GlobalmarketsizeandtheSMEshare..................................................................................4

2.2. UKSMEsinternationaltrade:EU...........................................................................................4

2.3. UKSMEsinternationaltrade:Non-EU...................................................................................4

2.4. Challengesofinternationaltrading.......................................................................................4

2.5. LackoftransparencywithintheUKbankscommunity..........................................................5

3. Topsixbanksanalysis................................................................................................................6

3.1. Aim.........................................................................................................................................6

3.2. Analysis..................................................................................................................................7

3.2.1. BanksOverviewandComparison......................................................................................7

3.2.2. Estimate:HowmuchareSMEsintheUKbeingcharged?.................................................7

3.2.3. Transparency.....................................................................................................................8

3.2.4. Commentsontheanalysis.................................................................................................8

4. Conclusions..............................................................................................................................10

5. Appendix..................................................................................................................................12

5.1. Methodology.......................................................................................................................12

5.2. AboutAccourt......................................................................................................................13

5.3. Generalcommentsregardinginternationaltransfers.........................................................13

5.4. Bankingratesandfees.........................................................................................................14

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1. ExecutiveSummaryThe global international payments market is estimated to be worth $26trn of which $5.6trnbelongs to the small and medium sized enterprises (SME) sector. Although the largest sharebelongs to thecorporateandcommoditiessector, theSMEsector is responsible for21%of themarket.ForUKSMEsinternationaltradeisworthover£700bn,ofwhich£365.3bntakesplacewithintheEU, £162.92bnofwhichareoutgoingpayments (SEPApayments).Basedon this last figureandtheassumptionsexplainedinthisreport,banksarechargingUKSMEsatotal2.43%ofthevaluetransferredwhichmeans£3.96bnintransfercosts.Banks researched for this report show a common lack of transparency and no access to thespreadcosts(ontheotherhand,bankfixedfeesarepubliclyavailableinmostcases).Ingeneralterms,theSMEneedstobeabankcustomerormakearealpaymentinordertogetinformationonthespread.Somebanksdonotevenguaranteeanexchangerateuntilthetransferhasbeenmade;thismeansthatifthecustomergivesanordertothebanktodoatransferof€10,000inaweek’stimetheFXratemightbeunknownuntilthetransferisexecutedonthatdate.ThismakesthecomparisonanddecisionmakingprocessforSMEsextremelychallenging.Whencomparingcostsamongbanksthereisnostraightforwardwayofdecidingwhichoneisthemostexpensiveasthemarketissignificantlyvariableandtheinternalbanksystemthatgeneratestheexchangerateisdifferentfrombanktobank.Forexample;ondayonebankAcanbecheaperthanbankB,andondaytwobankAcanbemoreexpensivethanbankB.SMEs should explore alternative options that may provide more straightforward and costeffectiveoptionsfortransferringmoneyinternationally

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2. SMEinternationalpaymentsmarketoverview

2.1. GlobalmarketsizeandtheSMEshareTheglobalinternationalpaymentsmarketisestimatedtobeworth$26trnofwhich$5.6trnbelongsto the SME sector. The SME sector forms 21% of the total international paymentsmarket and itremains largely underserved; this is because there is notmuch competition to the banks and thebanks tend to overcharge SMEs and/or conceal the final costs before the payment is confirmed.From the SMEs’ total global international payments value of $5.6trn, $1.724trn sits within theEuropeanUnion1.

2.2. UKSMEsinternationaltrade:EUFromtheUKperspective,thelion’sshareofinternationaltradeiswithcountriesintheEU,with50%ofallimportsandexports,amountingto£365.3bnin2014.GermanyistheUK’ssinglelargesttradepartnerandaccountedfortradeworth£90.8bn,or12.5%oftotaltrade.TheU.S.isthenextlargesttrade partner at £71.7bn (9.8%), followed by the Netherlands, China, France, Belgium andSwitzerland.TradewiththeEUisoverwhelminglysettledinEuros.

2.3. UKSMEsinternationaltrade:Non-EUIn termsof theUK’s total trade volume, exchangeswithnon-EU countries fell by 10% in 2014 to£360.5bn, driven by an 18% contraction in non-EU exports, although this figure is distorted byparticularlyhighexportsin2013.TheEurozonemaystillbethelargesttradingpartner,butnon-EUtradehasgrownmuchfasterinrecentyears.GiventhemutedrecoveryintheEurozone,thistrendwillcontinue. Exportstonon-EUcountriesareinvoicedmostlyinSterling(60.8%ofthetotalvalue),accordingtoHMRCdatafor2013(thelatestperiodavailable).WhiletheU.S.receivedonly20%oftheUK’sglobalnon-EUexports, theDollarwasusedto invoice33.9%ofthetotal, followedbytheEuro (2.8%) and the Japanese Yen (0.4%). ForUK importers, the U.S. Dollar is themost popularcurrencyinwhichtobeinvoicedfromnon-EUcountries(65.6%ofvalue).Sterling,with22.7%ofthetotal, was the secondmost popular currency in which UK companies were invoiced for imports,followedbytheEuro(5.2%)andCanadianDollar(2.8%).2

2.4. ChallengesofinternationaltradingThere are some challenges involved in trading abroad,whether exporting or importing. Butwhilecurrencyandforeignpaymentsissuesareamajorconcern,especiallyforSMEs,theyarealltoooftenseen as an ‘inevitable’ cost of dealing with foreign currencies. As such, efforts to mitigate theseconcerns are often limited, whether through lack of knowledge about, or access to, financial

1Sources:

• “Micro,Small,andMediumEnterprisesAroundtheWorld:HowManyAreThere,andWhatAffectstheCount?”–WorldBank/IFC–August2010

• SmallBusinessStatistics–FederationOfSmallBusinesses–October2013• AnnualReportonEuropeanSMEs2012/13–EuropeanCommission• “TheFutureofGlobalPayments”–McKinsey&Co–November2014• “GlobalPayments2014:TheInteractiveEdition”–BostonConsultingGroup–September2014• “FixingGlobalPayments’$26TrillionProblem”–www.PYMNTS.com–3December2014

2Sources:fxcompared.com,UKTradeInfo,EEF“ManufacturingOutlook2015Q1”,ONS“ExportersandImportersinGreatBritain,2013”,EU“InternationalisationofEuropeanSMEs”,EUSMEInternationalisationPortal,WesternUnion“InternationalTradeMonitor”

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products and services that have the potential to reduce the challenges and costs associatedwithpayingorinvoicinginforeigncurrencies.

Apart from the currency costs involved in international trading there are other factors SMEs areconcerned about, such as currency risk. A global survey carried out by a global payment and riskmanagementfirm3overthecurrencyriskSMEsworldwideareexperiencingfoundthefollowingkeypoints:

• 43% of UK SMEs say currency risk presents the biggest challenge when it comes tointernational trade (this is an increase from 32%when the surveywas first conducted in2014)

• 8%ofcompanieshavescaledbacktheiroperationsbecauseofcurrencyvolatilitythroughout2014and2015

• 91%offirmsexpectinternationalmarketstoremainatleastasvolatilethisyearaslastyear• Eurozone issues, US economic policy, quantitative easing by the ECB and falling oil prices

haveledUKSMEstorevisittheirapproachtomanagingtheircurrencyrisks• Despitethisvolatilityanduncertainty,UKSMEsaremorebullishabouttheirprospectsthis

yearthanlastyearwith46%expectingtoincreaseinternationaltradelevels

2.5. LackoftransparencywithintheUKbankscommunityIn general termsUK banks lack transparency on currency exchange rates andmargins. Each bankgenerates itsownFXrateforthedayandit isprovidedbyan internalsystemwhichcustomersdonot have access to. In some instances the bank’s exchange rate is not even provided beforeconfirmingthepaymentsoitisunknowntothecustomerhowmuchisgoingtobechargedforthetransaction.OutsidetheUKtherearesomebankswhichfacilitatethedecisionprocessbyshowinganFXtoolwhereratescanbecomparedtoothercompetitorsorthemid-marketrates.

Forexample;theAustralianbankANZoffersacomparisontoolsothatcustomerscanhaveanideaof the spread costs.However, themid-market rate is 1GBP : 2.1173AUDwhichmeans the spreadcostsare3.789%,afigurethatisgrosslyinflated.OntopofthatANZwouldaddtheassociatedfeesfortheinternationaltransferservice.

3SurveyconductedaspartofthesecondannualCurrencyRiskOutlook2015.

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3. Topsixbanksanalysis

3.1. AimAccourtconductedresearchintothetopsixUKbankswiththeaimofextractingtheircostsandfees for internationalpaymentsandunderstandinghowtheexchangerate isofferedbybankscomparedtothemid-marketrate.Thefocusoftheresearchwasthefollowing:

• ComparethecostoftransferringmoneyviaanonlinechannelbyUKSMEsacrossdifferentamountvaluestoEurocountriesbetweenbanks.Duetothevariablenatureoftheforeignexchange market and the international payments business there is not a simple orstraightforwardmanner todo it. Forexample; theexchange rate variesdependingon thetimeoftheday;thereisstillsomevolatilitywhencomparingaquotegivenbybankAattimeAtoanotherquotegivenbybankBattimeBonthesameday.Threepaymentbracketshavebeenconsideredfortheresearch,thosebeing£0K-£10K,£10K-£100Kand£100Kandover.

• EstimatethetotalcostsonanannualbasisforUKSMEstradingintheEU.• Transparency;theresearchalsoseekstofindoutwhetherafinalandclearfigureofthetotal

costofthetransactionisprovidedbeforethecustomerdecidestomakeapayment.

The research has focused on the online channel and, although various currencies have beeninvestigated,onlyGBPtoEURtransactionshavebeenanalysed.

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3.2. Analysis

3.2.1. BanksOverviewandComparisonThefollowingtablesprovidethecostsoftransferringaspecificamountinGBPinEURtoanySEPAcountry.Pleasenotethatallbanksweresurveyedanddatapointscapturedbetween23/9/15and26/10/15.

WorstBank £0-£10K £10K-£100K £100KandoverGBPamount £5,000 £50,000 £100,000EURamount €6,594.50 €65,945.00 €131,890.00Bankrate 1.3189 1.3189 1.3189Mid-marketrate 1.3675 1.3675 1.3675Fixedfees £15.00 £15.00 £15.00FXspreadcosts 3.68% 3.68% 3.68%Totalcosts 3.99% 3.71% 3.70%TotalcostofTxn £199.05 £1,855.55 £3,696.10

BestBank £0-£10K £10K-£100K £100KandoverGBPamount £5,000 £50,000 £100,000EURamount €6,683.66 €67,525.67 €136,429.41Bankrate 1.3367 1.3505 1.3643Mid-marketrate 1.3714 1.3714 1.3714Fixedfees £25.00 £25.00 £25.00FXspreadcosts 2.60% 1.55% 0.52%Totalcosts 3.11% 1.60% 0.55%TotalcostofTxn £154.82 £799.76 £548.78

MarketAverage4 £0-£10K £10K-£100K £100KandoverGBPamount £5,000 £50,000 £100,000EURamount €6,656.5 €66,740.0 €133,960.0Bankrate 1.3313 1.3348 1.3396Mid-marketrate 1.3669 1.3669 1.3669Fixedfees £13.83 £13.83 £13.83FXspreadcosts 2.68% 2.41% 2.05%Totalcosts 2.95% 2.43% 2.07%TotalcostofTxn £147.5 £1,215.07 £2,070.00

3.2.2. Estimate:HowmuchareSMEsintheUKbeingcharged?

UKSMEsinternationaltradewithintheEUarea

4Non-weightedaverageacrosstop-sixbanks

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ThetotalUKoutgoingpayments5totherestofEuropeis£162.92bnbasedonmarketresearchof2014UKSMEtrading,andtheaveragetransactionvalueisaroundthe£75,000mark.FromthiswecanconcludethatonaveragebanksarechargingSMEsatotal2.43%ofthevaluetransferredwhichequatestoavalue£3.96bn.

TotalGBPtoEURoutgoingpayments–UKSMEs £162.92bnAveragetransactionvalue(ATV) £75,000Totalbankcharges(averagebasedontheATVabove) 2.43%Totalbankcharges(GBP) £3.96bn

3.2.3. TransparencyBanksresearchedduringthisanalysisshowacommonlackoftransparency indivulgingthespreadcosts(ontheotherhand,feesarepubliclyavailableinmostcases).Ingeneralterms,theSMEsneedtobeabankcustomerormakearealpayment inordertoget informationonthespreadandthetotalcostofthetransaction.Somebanksdonotevenguaranteeanexchangerateuntilthetransferhasbeenmade.ThismakesthecomparisonanddecisionmakingprocessextremelychallengingfortheSMEs.

Banks’FX ratesareautomatic, system-generated rateswhichvaryby theminute/hourbasedonanumber of parameters. The banking sector does not offer a clear breakdown of the costs.Whilealmost all of them show the transaction fees on their website there is no public information onforeignexchangerates(notevenwhenacustomerringsthebank),whichiswherethemajorityofthe profits on the transactions are derived. Rates tend to get better as the transfer amountincreases,butthereisnoclarityonhowmuchbettertherategetsandtheimprovementisnotthesameforallthebankssurveyed.

3.2.4. Commentsontheanalysisa. WhichbankschargethemostforFXtransfer?

There is no straightforward answer to this question due to the volatility of the market and thevariablesthatarefactoredinforthefinalFXrateprovidedbybanks.Thismeansthatoncertaindaysandwithincertainconditionsonebankmaybecheaperthanothers,whereasinotherconditionsitcanbemoreexpensive.Alsoduetothelackoftransparencyonhowbankscalculatetheexchangerateswecannotproducedefiniteconclusionsorstatementsonwhoisthemostexpensive.

b. Howdobanksmaketheirmoney

Banksbuyandsellcurrencyatacertainbuying/sellingratewhichissignificantlymoreadvantageousthanthatappliedtotheircustomers.Althoughwecannotforgetthefees(sometimesquitehefty,upto£40ormore)thebulkoftheirrevenuesfrominternationaltransferscomefromthespread.

Hereisanexampletoexplaintheshareofthecostsderivedfromfeesandthosecomingfromthespread:

5Note: Inorder toworkout thetotaloutgoingpayments toEurope ithasbeenassumedthat the imports/exports traderatioofUKSMEswithintheEU isthesameasthatfornon-EUtrade;that is44.6%/55.4%.Basedonthat, fromthetotalEuropeantradingvalueof£365.3bn,thetotalvalueofoutgoingpaymentsofUKSMEsduetoimportsis£162.92bn.

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UKCustomerwantstosend£10,000inEurostoaEurozoneCountry(SEPAtransfer).

• Mid-marketrateonthatday:1.433(GBPtoEUR)• Rateofferedbythebank:1.389(GBPtoEUR)• Spreadcosts:3.1678%:£316.70• BankFees:£15• Total costs: £316.70+ £15= £331.70 (95.48%of total fees comes from the spread, 4.52%

comesfromthefees)

Aswecanseefromthisexample,themajorityoftherevenuesforthebankareduetothespread.Astheamount transferred increasessodoes thepercentageofcosts thatcomefromthespreadandthemoreinsignificantthefixedfeesbecome.

Notethatthebanksdonotmakemoneyoutofthefundsrelatedtothetransferitself.Thismeansthatthebanksdonotholdcustomerfundsforaperiodoftimeinordertoprofitfromtheinterestraterelatedtothefloat.Theissuingbankhastomakethepaymentthedaythecustomerordersit.Itthen takes a few days for the funds to hit the destination bank account (depending on thedestinationcountry).Theissuerbankdoesnotmakeanyprofitduringthetimeelapsedbetweenthesendingdateandthereceivingdate.

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c. Howdocostsvarybasedonvolume/size

Wehaveobservedacommonbehaviouracrossbanks(althoughitisnotalwaysthecaseduetothevariability of the market) that they tend to offer a better spread as the amount of the transferincreases;somebanksofferabetterexchangerateforpaymentsovercertainamounte.g.£25,000.Thisrategetsbetterastheamountincreases,howevertheexactimprovementoftheexchangeratecannot be described as they do not offer this information. The rate is automatic and system-generatedwhichvariesbytheminute/hourbasedonanumberofparameters.Banksusuallyshowtheir fees publicly, they are typically structured by channel, speed and destination country6. Anexception has been found with Santander which offers a bespoke fee (applicable to all types oftransactionsandspeeds)workedoutbasedonthenumberoftransactionsmadeperyearandtheamountsent.

d. Whichbanksofferonlineandaclearfinalfigure?

OnlinebankingismainstreamandallofthetopbanksintheUKofferinternationalpayment.Onlinetransfersareusuallycheaper(fromthefeesperspective)but inmostcasescustomersneedtopayan online fee or subscription in order to access online banking services. Please note that thissubscription fee has not been consideredwhenworking out the total costs. There seems to be acertain lackof transparency in some cases around the final transaction costs. Somebanksoffer afinal and clear figurebefore sending thepayment, others offer a clear figure for certain paymentbrackets,andothersdonotofferaclearfigureatall.

4. ConclusionsThe analysis has proven a challenging exercise as the banking sector does not offer a clearbreakdownof the costs. Almost all of them show the fees on theirwebsite; however there is nopublic information (not even providedwhen a customer rings the bank) on the foreign exchangespread,whichiswherethemajorityoftheprofitscomefrom.

Also,thebank’sinternalsystemthatgeneratestheexchangeratedependsonanumberofvariableswhich can differ from bank to bank; therefore a direct comparison between exchange rates ischallenging and makes it impossible for an SME to make an educated decision on internationalpayments.

Thereareanumberofconsiderationsthatareinplaywhenmakinganinternationalpayment:

• The volatility of the currency market itself makes it difficult to compare providers asexchangeratesarecontinuouslychanging.

• In addition to that, the UK banking sector lacks transparency as banks do not tend toimmediately or clearly show their exchange rates. This makes it difficult for SMEs tocompareagainstcompetitors.InthemajorityofcasestheSMEneedstobeacustomerandperformarealtransactioninordertogetaccesstothefinalrate–somebankscannotevenguaranteetheexchangerateatthemomentofthetransaction.

• Ingeneraltermsthereisopenandpublicinformationonfeesonbanks’websitesbutthesearenotverystraightforwardandvarydependingonseveralfactorssuchasthechanneland

6FormoreinformationseeAppendix‘Bankingratesandfees’

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the speed. This can confuse the customer andmake it difficult to compare against othercompetitors.

• Online transactions tend tobe thecheapest froma feesperspective;however this canbeunderminedbythemonthlyonlineservicefeethatthemajorityofbankscharge.

• The largestshareofthecostscomesfromthespreadthatbanksmake.Thiscanrepresentover95%ofthechargesfora£10KtransactiontoanEUcountry(basedonrealexamples).Thespreadsharecanbeevenhigherforalargertransactionamountwherethefeeremainsthesamebutthespreadisapercentageofthetotalamounttotransfer.ThiscanproveanimportantoverheadforSMEstradingoverseas.

UK SMEs should explore making informed decisions before making an international transfer andworkout the total costs theyaregoing tobe charged. Therearealternatives tobankswho couldoffer competitive fees,however, asdescribed in section two, theSMEmarket isunderservedandthereisverylittlecompetitionatthemoment-thereforefindingcompetitivealternativescanprovechallenging.

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5. Appendix

5.1. MethodologyTheresearchhasbeenconductedacrosssixofthetoptenbanksintheUKtoultimatelydiscoverthecostsofmakinganinternationaltransferusingabankasaserviceprovider.ThesecostsincludetheFXspreadandanyfixedfeesassociatedtothetransaction. InordertoobtainthefindingsAccourtconductedbothdeskresearchandinterviewswiththebanks.Thefollowingquestionswereaskedasaguidelinefortheresearch:

a. Feestructureandspreadb. Paymentbrackets(andcorrespondingfees)c. Bank charges for SEPA payments for the following payment brackets; £0 -£10K,

£10K-£100Kandover£100K(includingSWIFTcostsifapplicable)d. Bank charges for non-SEPA international payments for the following payment

brackets;£0-£10K,£10K-£100Kandover£100K(includingSWIFTcostsifapplicable)e. Doesthebankofferanonlinechannel?f. Dothebanksofferafinalfigure?Howtransparentarethey?

Apart from GBP to EUR transfers other currencies have also been researched but just EURtransactions have been analysed for comparison purposes. Additional information on othercurrenciescanbefoundontheAppendix.

Duetothe lackofaccesstoexchangerate information, real internationalpaymentsdatamadebysomeUKSMEshasbeenneededinordertoextractpartofthevitalinformationforthisreport.

Some assumptions have beenmade in order to calculate the amount UK SMEs are spending onspreadcosts.Theseassumptionsareclearlyexplainedintherelevantsection.

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5.2. AboutAccourt

Accourt is a leading provider of strategic and operational consultancy services to the paymentsindustry worldwide. Our clients include banks, card schemes, financial services institutions,payments and technology providers, telecom operators, corporates, merchants, andgovernmentorganisations.Weaimtomakeapowerful,positivedifferencetoourclients’futures.

Our consultants are all experienced practitioners with front line P&L experience, combiningunrivalled strategic expertise with operational know-how. From defining and setting strategy, toimplementingdeployment,throughtofinaldelivery,Accourtisdedicatedtominimisingoperationalrisk and ensuring a successful and profitable outcome for our clients. We have a passion fordelivering realand lastingvalueandwebring focused,world-classexpertise tocomplementclientteams.

ManuelaAlorisanexperiencedfinancialservicesconsultant.InherroleatAccourt,shehasworkedon numerous projects with major payment schemes, banks, retailers and network operators.Manuela’s background includes mobile, e-commerce, merchant acquiring, pre-paid, cross-borderandalternativepaymentswithblue-chip companies in the industry. Inherprevious roles, shehasheld a variety of posts at Accenture, Santander and ABYM Global Consulting. At Santander sheworked in the Finance, Commercial, IT andOperations areas. In addition to the financial servicessector,shehasalsodeliveredconsultingengagementsforclientsintheenergy,telecomsandpublicsectors, working with prestigious organisations including British Telecom, Telefónica, and Applus.Particular areas of focus have been developing organisational strategy and positioning clients toincrease their competitiveness through deploying innovative solutions. She is fluent in Spanish,EnglishandItalian.

5.3. GeneralcommentsregardinginternationaltransfersSinceJanuary1,2006,ithasbeencompulsorythatallpaymentstoandfromEuropeincludeaBankIdentifier Code (BIC) and International Bank Account Number (IBAN). BICs and IBANs perform asimilar function inEuropetosortcodesandaccountnumbers in theUK,so thatpaymentscanbequicklyandaccuratelyprocessed.

IBANdoesnotreplacethesortcodeandaccountnumber─it’sanadditionalnumberthatcontainsextrainformationtohelpoverseasbanksidentifythecustomeraccountforpayments.

ASWIFTcode(orSWIFTBIC,as it issometimesknown) isacodethathelpsoverseasbanks identifywhich bank to send money to. For example, if an overseas bank is sending a payment to yourBarclaysUKaccount,theywillneedtoknowBarclays’SWIFTcode:BARCGB22.

BanksuseSWIFTtosendmessagestoeachotherandtheBICistheiruniquebranchreference.UsingbothanIBANandaBICenablesautomationofpayments,helpingtoeliminatedelaysandqueries.TheEUhasintroducedregulationstoalignchargesforlocalandcross-borderpaymentswithintheregion.Thismeansthatwhenreceivingcross-bordereuro-denominatedpaymentsforEUR50,000or less, quoting the correct IBAN and BIC, the beneficiarywill not incur charges, over and abovethosepayablelocally,fromthereceivingbank.

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5.4. BankingratesandfeesOnlineFeesbybankandcurrency

Barclays

GBPtoUSD GBPamount £5,000 £50,000 £100,000USDamount $7,499.00 $74,990.00 $149,980.00BankRate 1.4998 1.4998 1.4998Mid-Marketrate 1.5484 1.5484 1.5484FXSpreadCost 3.24% 3.24% 3.24%FixedFees £28.00 £28.00 £28.00Totalspread(includingfixedfees) 3.82% 3.30% 3.27%Totalcostoftransaction £190.02 £1,648.22 £3,268.43

GBPtoEUR GBPamount £5,000 £50,000 £100,000EURamount €6,594.50 €65,945.00 €131,890.00BankRate 1.3189 1.3189 1.3189Mid-Marketrate 1.3675 1.3675 1.3675FXSpreadCost 3.68% 3.68% 3.68%FixedFees £15.00 £15.00 £15.00Totalspread(includingfixedfees) 3.99% 3.71% 3.70%Totalcostoftransaction £199.05 £1,855.55 £3,696.10

GBPtoAED GBPamount £5,000 £50,000 £100,000AEDamount AED27,542.50 AED275,425.00 AED550,850.00BankRate 5.5085 5.5085 5.5085Mid-Marketrate 5.6861 5.6861 5.6861FXSpreadCost 3.22% 3.22% 3.22%FixedFees £25.00 £25.00 £25.00Totalspread(includingfixedfees) 3.74% 3.28% 3.25%Totalcostoftransaction £186.21 £1,637.05 £3,249.11

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HSBC



GBPtoAED

GBPamount £5,000 £50,000 £100,000AEDamount AED27,604.00 AED276,080.00 AED553,770.00BankRate 5.5208 5.5216 5.5377Mid-Marketrate 5.6485 5.6485 5.6485FXSpreadCost 2.31% 2.30% 2.00%FixedFees £17.00 £17.00 £17.00Totalspread(includingfixedfees) 2.66% 2.33% 2.02%Totalcostoftransaction £132.65 £1,166.12 £2,017.83

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Santander

GBPtoUSD GBPamount £5,000 £50,000 £100,000USDamount $7,443.30 $75,200.30 $151,935.30BankRate 1.4887 1.5040 1.5194Mid-Marketrate 1.5302 1.5302 1.5302FXSpreadCost 2.79% 1.74% 0.72%FixedFees £25.00 £25.00 £25.00Totalspread(includingfixedfees) 3.31% 1.79% 0.74%Totalcostoftransaction £164.59 £896.47 £740.24

GBPtoEUR GBPamount £5,000 £50,000 £100,000EURamount €6,683.66 €67,525.67 €136,429.41BankRate 1.3367 1.3505 1.3643Mid-Marketrate 1.3714 1.3714 1.3714FXSpreadCost 2.60% 1.55% 0.52%FixedFees £25.00 £25.00 £25.00Totalspread(includingfixedfees) 3.11% 1.60% 0.55%Totalcostoftransaction £154.82 £799.76 £548.78

GBPtoAED

GBPamount £5,000 £50,000 £100,000AEDamount AED27,336.30 AED276,181.15 AED557,998.65BankRate 5.4673 5.5236 5.5800Mid-Marketrate 5.6202 5.6202 5.6202FXSpreadCost 2.80% 1.75% 0.72%FixedFees £25.00 £25.00 £25.00Totalspread(includingfixedfees) 3.31% 1.80% 0.75%Totalcostoftransaction £164.85 £899.04 £745.32

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Lloyds



GBPtoAED


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RBS

GBPtoUSD GBPamount £5,000 £50,000 £100,000USDamount $7,558.20 $75,928.63 $152,940.30BankRate 1.5116 1.5186 1.5294Mid-Marketrate 1.5482 1.5482 1.5482FXSpreadCost 2.42% 1.95% 1.23%FixedFees £12.00 £12.00 £12.00Totalspread(includingfixedfees) 2.67% 1.98% 1.24%Totalcostoftransaction £133.02 £988.40 £1,242.83

GBPtoEUR GBPamount £5,000 £50,000 £100,000EURamount €6,680.12 €67,109.85 €135,176.94BankRate 1.3360 1.3422 1.3518Mid-Marketrate 1.3670 1.3670 1.3670FXSpreadCost 2.32% 1.85% 1.12%FixedFees £12.00 £12.00 £12.00Totalspread(includingfixedfees) 2.56% 1.87% 1.14%Totalcostoftransaction £127.78 £934.50 £1,135.80

GBPtoAED


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NatWest



GBPtoAED

GBPamount £5,000 £50,000 £100,000AEDamount n/a n/a n/aBankRate n/a n/a n/aMid-Marketrate n/a n/a n/aFXSpreadCost n/a n/a n/aFixedFees n/a n/a n/aTotalspread(includingfixedfees) n/a n/a n/aTotalcostoftransaction n/a n/a n/a

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