Currencies Direct vs Wise: Speed, Rates Comparison

The money transfer sector can have a huge impact, particularly when exchanging large amounts of money globally.

In this article, we are comparing Currencies Direct vs Wise on exchange rate competitiveness, fees, speed of transaction, and user experience.

Our in-depth review aims to assist you in making the right choice for your currency exchange requirements.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

This includes if you are looking for a second opinion or alternative investments.

Some facts might change from the time of writing. Nothing written here is financial, legal, tax, or any kind of individual advice or a solicitation to invest.

What is Currencies Direct?

Currencies Direct was founded in 1996 in the UK by Mayank Patel and Peter Ellis.

It was one of the first foreign exchange specialists that was not a bank but was dedicated to assisting individuals and companies with international payments and currency risk management.

What does Currencies Direct do?

• Large transaction international money transfers
• Foreign exchange risk management solutions
• Forward contracts to secure exchange rates
• Market orders (stop-loss orders and limit orders)
• Regular payment plans for frequent transfers
• Business foreign exchange solutions
• Multi-currency account to store more than one currency
• Assistance to purchase property in overseas real estate

What is Wise?

Wise, previously TransferWise, was founded in 2011 by Taavet Hinrikus and Kristo Käärmann with a mission to transfer money internationally affordably and simply.

What does Wise do?

• International money transfers
• Multi-currency accounts (40+ currencies)
• Debit card for spending in 150+ countries
• Business accounts
• Business debit cards
• Bulk payments and huge transactions

Which has the lower fees, Currencies Direct or Wise?

How much does Currencies Direct charge?

Currencies Direct is a high-value cross-border transfer and foreign exchange specialist for, for example, buying property, business payments, and periodic overseas transfers.

Currencies Direct uses a personalized strategy with a specialist account manager and tailored pricing based on transfer amount, frequency, and currency pair to transfer.

The firm does not explicitly charge transfer fees for the majority of transactions but makes a profit from exchange rate markups. The markup reduces with larger transfers, so the service is especially competitive for transfers in excess of £5,000/€5,000/$5,000.

Smaller transfers might incur flat fees to cover processing, but these are dropped occasionally for frequent users.

Currencies Direct provides both spot transfers (instant exchange at prevailing rates) and forward contracts binding exchange rates for two years for a deposit (usually 10% of the transfer value).

The forward contract facility is free of charge in addition to the usual exchange rate margin but is very valuable currency protection for house buyers and companies.

The company has low-value transfer caps (usually £1,000 or equivalent) in place prohibiting low-value remittances.

Cash services are not provided, indicating the company’s interest in customers (with bank accounts) affecting large-value remittances.

Exchange Rate Margin

• Standard margin: 0.5-2% above the inter-bank rate
• Volume discounts: Customers transferring over £5,000 a month usually have margins of less than 1%
• Infrequent users: Usually charged margins of 1.5-2%

Minimum Transfer Amount

• £1,000 (or equivalent) for frequent transactions

Forward Contracts

• Deposit requirement: 10% of the contracted amount
• Other fees: None except the agreed exchange margin
• Duration: Can fix exchange rates for up to two years

ATM Withdrawal Fees

• £1 per GBP withdrawal
• €1.2 per EUR withdrawal
• $1.4 per USD withdrawal
• Increased fees for less popular currencies (e.g., AU$1.9 for AUD)

Foreign Exchange Charges

• 2% charge when spending in currencies not stored in the card’s wallet
• Currencies Direct does not offer the lowest-marking exchange rates available.
• However, its bespoke service, sophisticated handling of complex deals, and lack of transfer fees make it especially well-placed to handle high-value cross-border transfers.

To get a precise estimate, you can get a quote from Currencies Direct.

How much does Wise charge?

Wise’s fees are clear and dependent on the transfer and the currencies you’re sending. Your fee will be dependent on your transfer information, sending money, using your card, or exchanging currency.

For Sending or Converting Money:

• Fees vary by currency, usually between around 0.33% of the transfer or conversion value.

ATM Withdrawals:

• 2 free withdrawals per month,
• The monthly free withdrawal limit varies for different countries.
• Extra ATM withdrawals will cost fees, which are charged depending on how many times you withdraw and how much you withdraw over the monthly allowance. The limit may be different between countries.

Account Funding Transactions:

• A 2% fee is charged when you top up your e-wallet or other accounts with certain currencies.

Wise Multi-Currency Card:

• There is a one-off charge of $9 and no monthly charge.
• There is free spending online, on the high street, and overseas in the same currency.

Having Money in Your Account:

• You can hold more than 40 currencies in your account for free.
• But you can only top up your account with money in 23 of them.

Receiving Money:

• Receiving money is free in 23 supported currencies.
• USD wire and Swift transfers are charged a flat rate of $6.11 for each transfer.
• GBP and EUR Swift transfers are charged a fixed rate of 2.16 GBP and 2.39 EUR, respectively.
• Varying fees for receiving money in other currencies by Swift.

For a complete analysis of the transaction, you can utilize the Wise Currency Converter.

Currencies Direct vs Wise: Which is better?

Currencies Direct deals with high-value transactions and has a customized service model with assigned account managers for every client.

The company provides better exchange rates as the transfer values are higher.

Expertise in purchasing property renders it a preferred option for expatriates purchasing overseas property.

Currencies Direct provides advanced hedging facilities normally reserved for large corporations to small companies and individuals.

However, the facility normally demands higher transfer minimums (typically £1,000 or more) than mass-market companies.

Wise normally takes 1–2 business days to make transfers (sometimes hours) which makes it a great option for bank-to-bank transfers.

Its transparent fee policy and good exchange rates are great advantages.

Wise website and app have an easy-to-use, straightforward interface with email and chat support and are supported by trustworthy security features.

Conclusion

Both Wise and Currencies Direct offer robust currency exchange solutions, though to slightly different needs.

Currencies Direct may provide a more tailored service and improved rates for larger-value transfers.

On the other hand, Wise leads through its transparent, digital-first approach and quick processing times.

Thus, your choice should be based on your transaction volume and service expectations, with regular due diligence as an integral part of your decision-making process.