A user has asked: I wish to receive euros from a house sale in Bulgaria but I need it to go into a euro account. What’s the best way to get this set up.
Answer: If you are converting a large amount of Bulgarian Lev into Euros, you should be able to save a significant amount by using a currency broker rather than getting your bank to arrange the conversion.
Using a currency broker will give you more control over the timing of the exchange rate and also the actual cost of the conversion. You can request quotes from multiple currency brokers here to see which one offers the best deal for your specific currency exchange.
You will need to send the Lev from your bank to the currency broker who will convert it into Euros. You will then need somewhere to send the Euros once the conversion has been done.
If you send it straight into a GBP bank account the bank will either reject the transfer or convert it automatically at their exchange rate which could cost you around 4% of the transaction value.
If you are looking for a bank in the UK that offers Euro accounts you can read our Q&A on the best free Euro accounts in the UK. It may also be worth checking with your current UK bank to see if they offer Euro account services.
However, one thing to consider is that if you are planning on sending a large number of Euros into a new bank account make sure you tell the bank that this may be happening. Whilst it is easy to open a bank account, a large single transaction can be flagged as suspicious, so make sure you contact the bank beforehand to the transaction pre-approved. You may have to prove the source of funds and supply supporting documentation to back this up. This is a fairly standard AML requirement, and whilst it may seem intrusive, if you want the transaction to go smoothly it’s best to pre-plan.
For more info you can read our guide to preparing for a large foreign exchange transaction here.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.