Charles Schwab

[GuilleGee]

Question, since I know lots of us use Charles Schwab.

Does anyone know what exchange numbers they use to calculate the rate when withdrawing from ATMS?

 

[ndcj]

Question, since I know lots of us use Charles Schwab.

Does anyone know what exchange numbers they use to calculate the rate when withdrawing from ATMS?

It seems to be more or less the mid-market rate of the previous day (meaning very, very good). There is no extra margin or hidden conversion cost.

 

[chiguy]

It seems to be more or less the mid-market rate of the previous day (meaning very, very good). There is no extra margin or hidden conversion cost.

Can anyone confirm this? GuilleGee what has your experience been?

 

[sesamosinsal]

I posted this in another thread on the same topic:

I don't think banks give you a special exchange rate when you withdraw from an ATM. They use the current market rates, which are probably given to them by the networks (Link, Banelco, etc.) that facilitate the transaction.

On July 28, I withdrew $850 ARS at Banco Santander in Puerto Madero. The total withdrawn was $866.68, which includes the $16.68 (~$4.00 USD) access charge. My bank (Schwab) does not charge additional fees, and refunds the access charge at the end of the month. The total dollar amount withdrawn from my account was $209.68. That amount includes the access fee.

According to Yahoo! Finance, the market rate for the USDARS on July 28, 2011 was 4.1316 ARS.

The rate given to me for my transaction at Santander: $866.68 ARS / $209.68 USD = 4.1333

Therefore, the difference between the two rates is a mere $0.0017 ARS, which is due to the constantly changing, 24-hour FOREX market.

 

[scarface]

They trade at the international wholesale rate for currency exchange available to the likes of VISA, Mastercard, etc. If you do the calculation on an ATM withdrawl backing out the local Banelco/Link fees (and any other unnecessary fees you allow yourself to be subject to) you will see that you get between the buy sell rates published as the local bank official rates, generally closer to the higher "venta" rate. http://www.ambito.com/economia/mercados/dolar.asp

 

[chiguy]

Thanks so much for that info. Very helpful. It seems for once that the banks are not totally ripping off the customer (maybe only if you are a Schwab customer...paying $4 USD for ATM fees w/ such a low limit on withdrawals is absurd).

So now my question is, assuming you have a Charles Schwab debit card which refunds ATM fees (which I do), is there any reason I should bring in a large sum of US dollars?

I've heard that the black market exchange rate on the street is more than the official exchange, such that $1 USD will get you $4.50 ARG, a $0.20 ARG premium over the current $4.30 ARG exchange rate (but maybe this premium does not outweigh to risk of getting fake bills or having money stolen). Other reason I can think to bring USD is to negotiate a discount for short-term rentals, as I hear landlords prefer USD as an inflation hedge and to avoid taxes.

Am I missing something?

 

[igor]

So now my question is, assuming you have a Charles Schwab debit card which refunds ATM fees (which I do), is there any reason I should bring in a large sum of US dollars?

Why don't you check also this thread:

http://baexpats.org/expat-life/17856-charles-schwab-limits-atm-rebates.html

 

[chiguy]

Thank you for that link, igor.

It appears that I'm in a good position since I have a high-yield Schwab checking account linked to an investing account. These accounts have unlimited ATM rebates worldwide.

I will also be coming in through Uruguay and am told that ATMs there will distribute USD, making it less necessary to bring in USD directly from the states. Also, as a last resort I could take a day-trip back to Montevideo to collect USD from an ATM.

Any other boots-on-the-ground advice for minimizing money exchange fees? I'll be in Buenos Aires for three months, from February though April.

 

[Napoleon]

I've heard that the black market exchange rate on the street is more than the official exchange, such that $1 USD will get you $4.50 ARG, a $0.20 ARG premium over the current $4.30 ARG exchange rate.

You should use this to find out what the true street price is:

http://www.x-rates.com/d/ARS/table.html

Today it's: US$ 1 = AR$4.79408

You're not going to get that if you actually do find a change place that will work with you.

You WILL get this if you find someone who needs dollars. You can also get this perhaps at stores if you negotiate.

Some stores and/or bars & restaurants will have a sign that says:

"US$1 = AR$4.50"

For instance. That's great for the person who shows up and doesn't know about the situation. It's not nearly as great for the person who lives here and has Argentines who want to buy their dollars. Either way, it's better than using a credit card or money drawn at an ATM.

 

[chiguy]

Napoleon, that will come in handy. Thanks.

Can you elaborate on where that number comes from and why it differs from what I find on Google Finance?

It seems that USD are in high demand in Argentina, and given the difficulty of buying USD through official channels I'm assuming that there is no shortage of people willing to exchange pesos for dollars at above official rates, but how does one find these people?

Word-of-mouth? Website? Craigslist?