Should I transfer a bulk of my savings now, or in small chunks (usd to gbp)?

We should be moving to London from New York in the next ~2 months. My basic view is that both the dollar and the pound will depreciate in the next few months relative to other world currencies, but the dollar more than the pound. With this view, and considering fees, exchange rates etc, I am trying to sort out if I should transfer the bulk of my USD savings to GBP ASAP - and if so - mechanically, exactly how. Alternatively, should I move smaller pieces of my savings into GBP at regular intervals?

I am not really concerned with an 50 pound fee or something, I am more concerned with getting hit with a rate spread on a nontrivial amount of money.

I will be getting paid in GBP starting in around 2 months when I arrive in the UK

I am just not sure what mechanically is the best way to move larger sums of money into GBP and strategically if it is best to do it in 1 fell swoop, or in increments.

I have read the other posts here about using xe, etc, I am just not sure how well that scales.

Any thoughts?

Thanks in advance.
-Chris-

I don't know much about transferring money, but I have a couple of thoughts:

With this view, and considering fees, exchange rates etc, I am trying to sort out if I should transfer the bulk of my USD savings to GBP ASAP - and if so - mechanically, exactly how. Alternatively, should I move smaller pieces of my savings into GBP at regular intervals?

I'm curious: where exactly would you move the money to? You can't open a UK bank account until you are in London and have proof of address etc., so where would the GBP be put once the money has been exchanged?

I am just not sure what mechanically is the best way to move larger sums of money into GBP and strategically if it is best to do it in 1 fell swoop, or in increments.

I have read the other posts here about using xe, etc, I am just not sure how well that scales.

I haven't transferred money before (when I moved to the UK I just brought traveller's cheques to deposit into a US bank account once I had opened one - I took $2,000 in cash/traveller's cheques and wasn't charged any commission to change the money from pounds to dollars), so I can't recommend companies, but I'd say it was worth looking around at the different rates charged for different amounts. For example, they might charge a percentage of the amount being transferred, or they might charge a flat rate over a certain amount of money. Also, I'm pretty sure you'd have to specify a current UK bank account for the money to be transferred into.

I'm curious: where exactly would you move the money to?

You could transfer money in different kinds of bank accounts. For example firms like Interactive Brokers lets you 'park' your money in different currencies. You can also open pure FX Trading accounts, although it is somewhat different.

The best simple thing I have found so far - given a UK account is this:

http://fxglobaltransfer.oanda.com/ [nofollow]

If you are talking about moving around hundreds of thousands of pounds, euros, or dollars they will give you a flat fee and a narrow spread. Depending on who your goes through, they can give you varying 'spreads' or the per unit exchange overhead they take (usually measured in BPs - basis points). This spread can amount to tens of thousands of dollars, pounds - whatever money unit.

I am currently thinking about opening either a fx trading account, or a Barclays international bank account. Since I am not a resident yet, I am just weighing the balance of waiting vs effectively exchanging monies via currency parking or direct fx trade.

Thanks for the response ksand24.
-Chris-

You may want to talk to Worldwide currencies (linked from my website) http://www.medivisas.com/links.asp  They offer a very competetive rate (as I think someone else from this site has found) and will hold on to your dollars in a UK account until the exchange rate is most favourable to you.

Vicky

Don't forget that bringing a mixed fund account to the UK will create a UK income tax problem plus a UK capital gains tax problem on the currency if you are claiming the remittance basis for UK tax.

I'll second the worldwide currencies recommendation. Very quick, efficient, and a far better rate than xe offered.

I'll ask this though, why are you so keen to bring your money over? Unless you need it immediately for a down payment on a house, I would leave it in the US until the exchange rates improve. Since we're going to be renting for at least the first two years of our stay here, I've brought over minimal capital. No point, at the current rates.