Does anybody know where to get the exchange rate which Upwok use? Not the one written when you withdraw your money but a website to get an idea of the exchange rate used by Upwork during a particular day. I know Upwork is using a bulk exchange rate which means lower than the real exchange rate. I lost between 3% to 6% everytime I withdraw to local currency (best option for me).
Thanks in advance
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This is a topic I have looked at a lot because I am an American living in Chile and I lose anywhere from 3-5% on currency conversion.
You can type, for example "convert 1 usd to euro" in Google Chrome and that will give you the current exchange rate.
There is no official exchange rate. Instead there are currency markets. Even Upwork's bank has to go the currency market to, say, sell dollars to buy euros. That is where you start losing money because of the spread between the bid and asking price. The currency traders must make a profit too.
You can see live information of the spread between the bid and asking price here http://www.forex.com/pricing-live-spreads.html
For example, here is the bid and ask price right now selling US dollars and buying canadian dollars. Is it
bid ask spread
1.29584 1.29604 2.0
The spread is usually to 4 decimal points so 2 would be 0.0002 different between what the bank pays to buy the foreign currency or $2 on $10,000 dollars.
After that comes your foreign currency fees, ATM charges, and so forth charged on your bank, the bank where you withdrawal cash, your credit card company, Paypal, and various **Edited for Community Guidelines** along the way.
Thanks for your explanations. I tried opening the link you provided but it was blank.
Fortunately my bank isn't taking anything from what Upwork sends me. I get the exact amount as what Upwork told me on their emails.
It's just that the exchange rate that Upwork use is always 3-6% below the current exchange rate.
What you are paying is about normal, except 6% is too high. You should lose maybe 4%.
Someone somwhere along the line someone is charging you a fee. It's not Upwork. It will be PayPal, Skrill, your bank, the bank where you withdraw money, or some money transfer agent.
You need to read the fee information with whoever is doing the transfer from Upwork to your bank account or the ATM. For example, if it's Paypal they list that on their web site.
Upwork says on their web site that they charge $30 for an international wire transfer. They do that because their bank charges them. That is a lot. I would avoid that.
Paypal is expensive too. The best rate I think would be to deposit into a dollar bank account in the USA and then withdraw cash from an ATM. Then you just pay a $5 fee to the banks at each end (i.e. your bank and the bank where you withdraw cash.) Of course you would need a bank account in the USA for that, which maybe you don't have.
re: "The best rate I think would be to deposit into a dollar bank account in the USA and then withdraw cash from an ATM. Then you just pay a $5 fee to the banks at each end (i.e. your bank and the bank where you withdraw cash.)"
Just to be clear about this:
If you withdraw your Upwork earnings to a U.S. bank account, there is no fee.
And if you get money from an ATM associated with your bank, there is no fee, either.
If you withdraw money from your account using an ATM that is NOT associated with your bank, THEN there would be a fee.
If you want to transfer your money from a U.S. bank to a bank outside the U.S., there is presumably a fee.
But if you actually have a U.S. bank account, and only withdraw money when you are in the United States, and only from your bank's ATMs, you can pay zero fees entirely.
I know that and that is what I wrote. What we are talking about are people living outside the USA, as in me and the lady who asked the question. Yes there are fees levied by the banks. Not Upwork. For example, Wells Fargo charges me $5 and then the bank in Chile charges $5 more to make an ATM withdrawal. But if you ask Upwork to do an international wire transfer then that costs $30.
The banks do not make a currency exchange profit. But the transfer agents, some of them, might. I am not sure if Skrill does. Some also charge a current conversion fee like Payoneer (1.5%) who lots of us at eLance use.
Those of us living in foreign countries lose 3-5% in currency conversion fees everytime we move money out of Upwork.
Hi Preston. Thanks for your reply.
Unfortunately having a US bank account would not be an option for me. I lost money due to the exchange rate published/used by Upwork which is 3 - 6 % lower compared to other websites during a particular day. I don't get any additional charge apart from $3.99 by Upwork for processing my wire transfer.
Thanks for your reply and apology that I just saw your post. It has been a busy week for me. After reading your explanations, I don't feel so bad anymore. It seems, I am not losing that much (it could be worse).
In my case, say the exchange rate is 1 USD equals 1.32 CAD. Then when processing wire transfer, Upwork will say 1 USD equals 1.2 CAD. Then, if I withdraw $100, I would receive $120 CAD. So my problem would be why the exchange rate that Upwork use is so low compare to exchange rate published on other websites. So the money I lost is more on the low exchange rated applied by Upwork, not due to the fee.
I don't get charged any additional fee on top of that, except $3.99 per wire transfer processed (to local currency).
After reading your explanations, I don't think that's so bad at all. Transferring in USD costs more for me and I don't own a US bank account.
It is not the transfer fee it is the exchange rate per dollar to local currency. if you get 5-7 local currency for an US Dollar. It is huge in addition to commission and transfer fee. Some one gobble up a high percentage of hard earned money!