Wise, Forex, and You - Keep More of What You Earn

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KEY POINTS

• Say goodbye to those hefty forex fees with your bank.

• Efficient, speedy, and secure management of your personal and corporate forex requirements.

• Enjoy the convenience of a multi-currency debit card for holding, sending, and receiving various currencies.

Ever felt burdened by excessive forex fees from your bank?

Ready to maximize your savings personally and corporately?

You're in the right place.

Join us as we explore Wise’s services, uncovering how you can potentially cut down on currency exchange fees—up to 4%—imposed by traditional financial institutions.

Beyond just savings, discover the integrated offerings that might align with your personal and corporate requirements.

Let's dive in.

Personal Forex Experience

I'm currently using Wise for my personal account, and the account setup was a breeze—straightforward, simple, and fast.

Before confirming any forex transactions, Wise presents a transparent breakdown of exchange rates and fees. Transfers happened as expected, on time.

My experience has been positive, and my account is still active.

Forex Savings Potential

Wise asserts offering superior exchange rates than competitors, displaying a rate comparison with various financial institutions on their website. Intrigued, we conducted our independent analysis of foreign exchange rates.

Here are our findings based on exchanging CAD 10,000:

Source	Forex Rate	Receipt	Cost	Cost
		USD	USD	%
Thomson Reuters	0.7306	7,306	-	-
Wise	0.7305	7,305	1	0.01
Brokerage firm	0.7201	7,201	105	1.44
Bank	0.7146	7,142	164	2.25

Thomson Reuters provides market pricing data is indicative of the market’s exchange rate.

Our findings align with Wise’s assertions. The savings are significant and have the potential for exponential growth if reinvested.

For instance, a $100,000 conversion could result in $1,630 of savings, which could grow to $17,825 over 30 years with an 8% rate of return.

Company Background

Kristo Käärmann and Taavet Hinrikus cofounded Wise (formerly TransferWise) in 2011. It is a global technology company listed on the London Stock Exchange with a market capitalization of approximately USD $10 billion (GPB 8 billion) at the time of this writing.

The company’s initial focus was providing individuals with the best way to send money between countries. The service offering has grown to include multi-currency accounts, debit cards, business accounts, and more.

Mission Highlights

“We’re building money without borders – making it move faster, more conveniently, and eventually for free. Powering money for people and businesses: to pay, to get paid, to spend, in any currency, wherever you are, whatever you’re doing. It’s not empty words. Our teams are dedicated to making each part of it a reality.”

MISSION PILLARS

CONVENIENCE

The Wise card offers remarkable convenience by providing a seamless solution for managing multiple currencies in one account. With the ability to hold, send, and receive various currencies, it eliminates the need for multiple accounts and simplifies international transactions. Additionally, the card's fast and secure functionality ensures efficient handling of foreign currency needs, making it a hassle-free choice for individuals and businesses navigating global financial transactions.

GLOBAL

The Wise card can be a great global financial companion, allowing users to transact seamlessly across borders. With multi-currency support and the ability to hold, send, and receive funds in various currencies, it caters to the diverse needs of a global audience. Its widespread acceptance and integration with local banking systems worldwide make it an attractive choice for those with international financial requirements.

PRICE

The Wise card stands out as a cost-effective solution, offering competitive pricing for managing international transactions. With transparent and low fees, it ensures that users can keep more of their money when dealing with foreign currencies. The clear fee structure, along with Wise's commitment to providing favorable exchange rates, makes the Wise card an attractive and budget-friendly option for those seeking affordable global financial solutions.

SPEED

The Wise card excels in transaction speed, ensuring swift and efficient processing of international payments. Wise claims 60% of all transfers are completed in less than 20 seconds and 80% within an hour. The card's rapid transaction capabilities make it a reliable choice for individuals and businesses requiring quick and hassle-free cross-border payments.

TRANSPARENCY

The Wise card distinguishes itself with a commitment to transparency in its fee structure and exchange rates. Users benefit from clear and upfront information on costs, ensuring they have a comprehensive understanding of their financial transactions. This transparency empowers Wise cardholders to make informed decisions and confidently manage their international finances without hidden surprises.

Customer Profile

The service offering includes both personal and business accounts. As of March 1, 2023, the company had served 16 million customers worldwide with 6 million active customers (5.7m personal, 0.3m business) moving over £25 billion each quarter.

Forex Product and Service Offering

Wise offers personal and business accounts. Both provide a low-cost option to send and receive international transfers in multiple currencies. You can manage your account via desktop or mobile phone app.

Personal Forex Account

Your personal account allows you to hold balances in over 40 different currencies, check exchange rates, pay bills in multiple countries and currencies, send money home to family, and more. You can have your salary or pension deposited directly to your account.

Forex conversions are made at the real mid-market exchange rate. Transfers can be done with an email address or phone number. You can receive payments in 10 different currencies: USD, EUR, GBP, AUD, CAD, HUF, NZD, RON, SGD, and TRY.

Account holders can also obtain a debit card which can be used to spend in different currencies and more than 160 countries.

Business Forex Account

Your business account allows you to send and receive funds internationally in multiple currencies. Batch payments can be uploaded via spreadsheet and sent instantly, where possible.

It has bill payment features including the ability to attach receipts and other information to payments and sync to QuickBooks to facilitate timely and efficient reconciliations.

Your Wise debit card facilitates spending in foreign currencies while providing tracking and authorization controls.

Feature	Business	Personal
International transfers at the mid-market rate	✔	✔
Hold over 40 currencies	✔	✔
Account details for 10 major currencies (USD, GBP, EUR, AUD, NZD, CAD, HUF, RON, TRY, SGD)	✔	✔
Send money to 160 countries	✔	✔
Accounting software connection	✔	✘
Batch payments	✔	✘
Multi-user access controls	✔	✘
Receive Stripe and Amazon payments for free	✔	✘
Wise open API	✔	✘

Forex Debit Card

Personal and business customers can obtain a Wise debit card issued through the Visa and Mastercard networks.

It is not a credit card; therefore, the card must have sufficient funds on account to facilitate a given transaction.

If you do not have sufficient funds held in the currency being transacted, Wise will automatically convert the necessary funds from your other existing currency balances to facilitate the transaction, assuming sufficient balances exist within such currencies. Wise will automatically utilize the real mid-market exchange rate.

The card allows the owner to hold, send, and spend in multiple currencies around the world without paying the exchange rate fees and hidden mark-ups charged by other financial institutions. You can use the card in over 175 countries, 40 currencies, and 3 million ATMs. Its flexibility includes online, Apple Pay, Google Pay, and in person.

PROS	CONS
No foreign exchange fee mark ups	Deposits are not insured like those held by banks (e.g., FDIC in the U.S., FSCS in the U.K., CDIC in Canada, FCS in Australia)
No annual fee	Not all deposits earn interest
No hidden fees	ATM fees can be expensive
Hold multiple currencies	No credit facilities (it is not a credit card)
Transact in multiple currencies	Cannot add funds via cash or check
Mobile app to check rates and transact	Limited customer support
No minimum balance required
No minimum income required
Free ATM withdrawals (limits apply)
Freeze / unfreeze your card instantly

Security

Wise utilizes two factor authentication to reduce the risk of others accessing your account. They have a dedicated fraud team, and you receive instant notifications every time you spend with your card.

Their security operations team runs regular vulnerability scans and uses independent auditors for internal and external penetration tests and other security scans.

Deposit Protection

Wise is not a bank. Your deposits are not insured (e.g., FDIC, FSCS, CDIC, FCS).

Wise reduces the risks associated with your deposits by utilizing a safeguarding strategy. They separate customer funds from operating funds and hold such at multiple third-party financial institutions.

Funds are predominately held by Barclays Bank PLC, Citibank N.A., and JPMorgan Chase Bank N.A.. Diversifying across multiple institutions may reduce concentration risk.

As of March 13, 2023, 60% of client money was invested in secure liquid assets such as UK and US government bonds and money market funds. The other 40% was in cash.

The risk profile of your funds held on deposit are directly influenced by the credit ratings, operations, and solvency of the financial institutions utilized by Wise to hold your deposit as well as the credit worthiness and performance of the underlying securities held within the accounts held at such financial institutions.

Compliance

Wise obtains annual SOC-1 type 2 and SOC-2 type 2 Independent Service Auditor’s reports.

Wise is regulated in several countries:

Country	Regulatory Body
United States	Financial Crimes Enforcement Network
United Kingdom	UK Financial Conduct Authority
Australia	Australian Securities and Investments Commission
Canada	Financial Transactions and Reports Analysis Centre of Canada
Hong Kong	Customs and Excise Department
India	Reserve Bank of India

FINAL THOUGHTS

Wise can provide a fast, easy, and inexpensive way to send and receive money in multiple currencies. It does not offer the same deposit protection insurance as typically provided by regulated banking institutions; however, they do take multiple steps to safeguard your assets.

I am a current Wise customer and have enjoyed a positive experience.