Many Thanks for all your responses. I managed to get set up with MacQuarie. (GEAA and CMT).
quote:Originally posted by patsy
WARNING = although the exchange rate they use is the wholesale rate, they apply all sorts of transaction fees. I'd NEVER EVER use their forex service between the account. It's better to get an AUD draft at your bank and pay the $25 draft fee than letting MacQuarie kill you with a barrage of unreasonable fees. On the positive side, the accounts have no maintenance fees.
Hi Patsy, can you elaborate further on this? From my own knowledge. they charge a 0.5% fee for their "Seamless forex" (and of course a spread), but are you saying there are other fees involved?
Many Thanks.
I think I mixed up two different type of concepts in my previous message. If you use the seamless forex, then according to the investment statement you pay wholesale rates plus 0.5% fee of the principal. I've never done seamless forex because I've always dealt with my bank manager, who has given me wholesale rates for a wire transfer directly into the CMT.
However, if you deposit NZD into the CMT, then they charge you two fees: one is charged by BNZ to convert NZD into AUD (apart from the spread) and wire the funds to Australia. Then when the wire is received in Australia, the NAB charges you another fee to have your funds into your account. I experienced this problem myself.
You can avoid all these fees by not letting MacQuarie deal with your NZD.
On the positive side, I've always found the call center (which is based in OZ) extremely knowledgeable and courteous. You can discuss with them any minute detail of their services and they answer on the spot - and better still, you can understand what they saying (not like for example Westpac or ASB that have 99% of Indians and Chinese with whom you can hardly hold a sensible discussion, let alone have your query answered straight).
Patsy, could you please expand on the 'seamless forex'?
When you open an account with MacQuarie, you can opt to get two accounts: one called the Gilt Edge Access Account (which is a NZ account, NZD denominated) and another one called Cash Management Trust (which is based in Australia and AUD denominated). There is an option in the application form by which you can choose the "seamless forex" service - this service allows you to transfer funds (upon request over the phone) from the NZD account to the AUD account and viceversa at wholesale forex rates (plus a 0.5% fee as previously said).
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