Money transfers from Switzerland to UK are almost as popular as transfers from USA to UK, Spain to UK, France to UK and Australia to UK in spite of the fact that there are “only” 41,000 Brits in Switzerland (as compared to almost 700,000 Brits in USA, 200,000 in France and close to 100,000 in Spain). The reason that UK-Switzerland transfers are far more popular than their respective immigration numbers?
- Swiss banking is very popular for UK nationals, and especially post brexit.
- Both UK and Switzerland are financial hubs. Many businesses have dual bank accounts in both countries (not necessarily even British or Swiss companies).
- Switzerland-UK trade has been always significant with more than £40bn in 2020, but is on a strong growth trajectory with the lift of tariffs as a result of the new UK Switzerland trade agreement.
- The CHF is remains stable and healthy while the Pound Sterling is on a decline. Many Brits, particularly HNW individuals, like to keep their assets tied to CHF over the GBP.
Cheap Transfers from Switzerland to UK?
The cost of international money transfers from Switzerland to UK (as well as transfers from UK to Switzerland) is specifically important in this corridor because of the average transfer size. As mentioned in the introduction of this article, many of those sending money from Switzerland to UK are either businesses or high net-worth individuals who are sending large sums of money.
While big Swiss banks (UBS and Credit Suisse) do not disclose the foreign exchange rates they are offering, we could look at Zürcher Kantonalbank exchange rates to learn that based on September 11, 2022, official exchange rates, the current markup charged by the bank is ~7% on small transfers and ~6% on large transfers. At the current internban rates at the time of checking, 50,000 Pounds amounted to 55,624.95 CHF, but using the bank’s offered exchange rates it would only be 52,250. In other words, an individual or business using this Swiss bank (and supposedly any Swiss bank) would leave more than 5% of each transfer on the table, allowing the bank to enjoy thousands in fees for a medium sized transfer (as transferring 50,000 CHF from Switzerland to UK is somewhat of an average size transfer for this corridor).
⭐The 4 Best Way to Transfer Money from Switzerland (+ From UK to Switzerland) ⭐
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Which currencies are supported?
While the focus of this article is money transfers from Switzerland to UK (as well as sending money from UK to Switzerland, of course), it does not mean that the above service providers aren’t able to serve customers with additional currencies. In fact, currency brokerages are able to handle as many currencies as banks. UBS advertises it can handle international payments in 120 different currencies and most brokerages are up to par with them. You can transfer money Switzerland to USA, to German, to Italy, to Australia, to Japan but also more exotic destinations like transferring money from Switzerland to UAE, Israel, South Africa or New Zealand.
How does it work? Is it safe?
While safety is one of the gravest concern for people globally, in Switzerland it may be even more of a concern. Swiss people know that they can trust their banks (as well as UK banks for that matter) but they aren’t necessarily familiar with non-bank services for transferring money Switzerland to UK. It should help them know that all the best money transfer companies recommended on this page are authorised to operate by the FCA, which means that their customer accounts are segregated and that there are stringent international money transfer regulation they have to comply with.
Additionally, it’s important to know the background story of these companies – all of which handle billions in currency each year, and have been used by businesses and individuals for 10+ years to transfer money overseas (whether in Switzerland, EU countries or UK, whereas many of the largest services are also operating in USA and Australia).
How and Why Switzerland-UK Transfers Bolstered Since Brexit
The Switzerland-UK trade deal was a “big deal” after brexit as the UK EU trade deal was extremely rocky during negotiations and ended somewhat unfinished, putting a dent on UK-EU trade. With the current energy crisis in Europe and in UK, the flaws of that deal are more visible than ever, but that is not the topic of this article but rather what replaced this trade partnership which was more than 50% of UK’s exports.
As UK-EU trade declined since Brexit, the UK has been making sizable efforts to find itself new trading partners, and found strong and deep partnership with Switzerland. The UK-Switzerland trade agreement stipulates that there bilaterally low tariffs on both ends (with most goods and services exempt from tariffs). The UK-Switzerland is similar to the agreement Switzerland has with the EU. Additionally, the UK-Switzerland trade agreement has enabled financial service providers in both countries to onboard customers with ease and with no regulatory hurdles (“comprehensive mutual recognition“).
The above has bolstered trade between UK and Switzerland since brexit, with more than twice as much trade in 2021 compared to previous year. Part of that relates to Brits finding a banking safe haven in Switzerland, and some to certain sectors such as British farmers who have pretty much shifted export from EU (prior to brexit) into Switzerland (post brexit).
All of which resulting in more, and higher-value, money transfers from Switzerland to UK and vice versa from UK to Switzerland.