|
Post by jevgenijs on Mar 15, 2016 11:55:07 GMT
Dear All,
We have just sent out an email with information about the upcoming functionality on TWINO. I am adding it here, in case some of you missed the email or have further questions:
Dear Investor,
One of TWINO promises is that we protect investors from currency risk. Thus, while investing on TWINO you don’t need to worry about Polish Zloty, Danish Krone or Georgian Lari appreciating against euro, as every transaction on the platform is performed in EUR.
However, investors from the UK still face the risk of EUR appreciating against GBP, which might lower their returns. Therefore, next week we are planning to launch a major upgrade that will remove the currency risk for investors, who hold their investable assets in British Pounds, equalizing the benefits of investing on TWINO with Eurozone investors.
The functionality will allow investors to choose the currency that they want to invest in (either EUR or GBP), and every transaction on TWINO will be processed in the chosen currency (including deposits, withdrawals, investments, repayments, etc.).
We will provide a further notice when the new functionality launches, and will be reaching out to existing investors, asking if they want to convert their TWINO accounts to GBP.
We are glad to be the first platform in Continental Europe to provide such functionality and hope some of you will benefit from it!
Sincerely, Jevgenijs
|
|
p2pmaster
investment is life.
Posts: 128
Likes: 54
|
Post by p2pmaster on Mar 15, 2016 12:13:15 GMT
Nice feature for GBP investors, but as an EUR investor, I am a bit worried as the currency risk is now taken by TWINO.
The platform risk increases and the sudden change in GBP/EUR (i.e. Brexit?) might trigger the default of the platform.
|
|
|
Post by jevgenijs on Mar 15, 2016 12:33:41 GMT
Hello, p2pmaster! Currency risk is a risk that can be hedged, it just requires larger volumes to make financial sense (and thus, is rarely an option for individual investors). Sincerely, Jevgenijs
|
|
|
Post by Deleted on Mar 15, 2016 15:08:40 GMT
Would've been nicer to have local settlement in UK for GBP, as that would've saved the banking fees jevgenijs any idea when Twino will start using Transferwise? martins already uses it and as per Transferwise, setting up a business account is fairly straight forward process. Also, any updates on getting FCA regulated?
|
|
|
Post by jevgenijs on Mar 15, 2016 17:25:45 GMT
Hello, @nancelot!
Can you please give me a hint on why would you need to use Transferwise after we introduce GBP to TWINO? There won't be a need to convert currency (you send money in GBP, it reaches your TWINO account in GBP) and Transferwise fee is the same as banking fee for international transfers.
On FCA: we will definitely go through the application process, but there is still no certainty on how non-UK platforms will be regulated.
|
|
|
Post by webbski9 on Mar 15, 2016 18:56:25 GMT
As a matter of interest , Transferwise fees are MUCH less than Bank fees and their exchange rates are MUCH better
|
|
|
Post by jevgenijs on Mar 15, 2016 19:37:38 GMT
Hello, webbski9 ! I agree that Transferwise beats any bank on the exchange rates (that's the core of their business, right?). However, why would you need to exchange anything? You will be able to send GBP to TWINO, invest in GBP, get paid back in GBP, and withdraw funds in GBP. So the exchange rate will be totally irrelevant. As to the fees, it depends on your bank and and the amount of the transfer: Transferwise charges 0.5% of the transferred amount, so in case of £1,000 they'd be cheaper than most UK banks. However, at £10,000 transfer, their fee would be well about the fees charged by HSBC, Barclays or RBS. Sincerely, Jevgenijs
|
|
|
Post by webbski9 on Mar 15, 2016 20:08:35 GMT
I agree.Was only pointing out that,in the past,TransferWise have been the best and cheapest way to transfer currency. The problem remains however,many investors will be investing in smaller amounts and thats where will still remain the system of choice. Therefore ,it would be very helpful if Twino could have a business arrangement with them.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Mar 16, 2016 9:26:21 GMT
jevgenijs, have you explored / are you considering opening a UK banking facility so that UK-based lenders could avoid international money transfer fees altogether?
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Mar 16, 2016 10:22:12 GMT
I agree.Was only pointing out that,in the past,TransferWise have been the best and cheapest way to transfer currency. The problem remains however,many investors will be investing in smaller amounts and thats where will still remain the system of choice. Therefore ,it would be very helpful if Twino could have a business arrangement with them. I'm not so happy with transferwise, the wesbite tells you you will get X amount ( with a little tiny asterisk to what they call T&C on another screen but is actually more than that) but when it comes to it you get X-ish. For a large sum the opposition is often better and further they will honour the deal.
|
|
homes119
Member of DD Central
Posts: 93
Likes: 19
|
Post by homes119 on Mar 16, 2016 11:33:09 GMT
Hello, webbski9 ! I agree that Transferwise beats any bank on the exchange rates (that's the core of their business, right?). However, why would you need to exchange anything? You will be able to send GBP to TWINO, invest in GBP, get paid back in GBP, and withdraw funds in GBP. So the exchange rate will be totally irrelevant. As to the fees, it depends on your bank and and the amount of the transfer: Transferwise charges 0.5% of the transferred amount, so in case of £1,000 they'd be cheaper than most UK banks. However, at £10,000 transfer, their fee would be well about the fees charged by HSBC, Barclays or RBS. Sincerely, Jevgenijs What if I want to send EUR to TWINO and invest in GBP? Which is what i'm considering to diversify away from the Euro a little bit and my current GBP investments?
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Mar 16, 2016 22:27:14 GMT
Where is this money 'earning interest'? By which I mean, if it's all in gbp, does this count as foreign earnings for a uk tax return?
|
|
|
Post by littleinvestor on Mar 16, 2016 22:38:08 GMT
If you want to invest in GBP then invest in a GBP platform displaying GBP loans. Why on earth would you invest in a Latvian Euro platform with GBP in Latvian/Georgian Euro loans using GBP, I mean really just invest then in a platform displaying British loans if you want to invest in GBP. (with a Brexit around the corner I would strongly avoid GBP btw, investors and market in general react negative on a country leaving a strong zone as it calls for instability)
|
|
homes119
Member of DD Central
Posts: 93
Likes: 19
|
Post by homes119 on Mar 17, 2016 9:43:21 GMT
If you want to invest in GBP then invest in a GBP platform displaying GBP loans. Why on earth would you invest in a Latvian Euro platform with GBP in Latvian/Georgian Euro loans using GBP, I mean really just invest then in a platform displaying British loans if you want to invest in GBP. (with a Brexit around the corner I would strongly avoid GBP btw, investors and market in general react negative on a country leaving a strong zone as it calls for instability) Because I can get 10%+ and would like to increase my GBP exposure (I have a 3 year time horizon) and I am already invested in the GBP property platforms and want to diversify away from property at decent interest rates while I wait (I am of the view that Brexit or not within 3 years the pound will recover but that is another debate, should still be ahead at 10% a year interest in the meantime).
I get to kill three birds in one stone here... increase GBP exposure, diversify across platforms, diversify across asset class while earning decent interest.
I understand that it may seem illogical, and I am not demanding this facility. All i'm saying is that I would potentially be interested if I could use transferwise for EUR-> GBP.
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Mar 17, 2016 12:21:18 GMT
I understand that it may seem illogical, and I am not demanding this facility. All i'm saying is that I would potentially be interested if I could use transferwise for EUR-> GBP.
Oh yes Transferwise will change your money any which way
|
|