Exchange Rates: The Stealth Rake

kev · #1 05-01-2006, 01:34 PM

How many of you non-US guys has this happened to: you make a deposit from your bank and the exchange rate used to change from your local currency (mine is pounds sterling) to US$ is lower than the actual. Then you find some easy games to play and you play better than your opponents but have some bad luck, either bad beats or a long cold run of cards, and finish with about 5% up on your original US dollar amount. Then you cash out back to your local currency. When it arrives in your account you find it's less than what you originally put in. Although you "won" you actually lost.

As far as I can tell most poker sites do this, and if you are playing middle or high stakes games this hit with the exchange rate could actually be higher than the actual rate!! I know that at party they can send you a cheque in US dollars but my local bank then charges me an unfair exchange rate when I deposit it.

What is the law on how much poker sites are allowed to alter the exchange rates to screw us out of our money? Have you got any tips on how to minimise these extra fees? Thanks.

JOEL_ · #2 05-01-2006, 01:39 PM

Always leave enough in the site or in neteller to go through some variance.

TITHEAD · #3 05-01-2006, 02:00 PM

I have also noticed this however i never really get to fussed about it. I just allow a fraction more for any transaction coz i know i get less

iSTRONG · #4 05-01-2006, 02:26 PM

[ QUOTE ]
Always leave enough in the site or in neteller to go through some variance.

[/ QUOTE ]

You still get owned at 1.9% uncapped when you decide to cash out from neteller... The stupid thing would be to convert money in an out constantly and that can be avoided but you can't really avoid cashing out (as a winning player)

JOEL_ · #5 05-01-2006, 02:32 PM

No,but thats what I meant.To avoid deposting/cashing out/depositing.Just always make sure you leave plenty to handle downswings.

There is no way to avoid the exchange rates unless you don't exchange ever.You could have a dollar account in the UK and wait for a favourable exchange rate.

_TKO_ · #6 05-01-2006, 02:43 PM

Have Neteller or the site send you a cheque in USD and then take that cheque to the bank. This should help alleviate some of the exchange. Also, you lose less if you do it less often.

kev · #7 05-01-2006, 04:18 PM

Yes I don't cash out often because of this, but sometimes there's a good bonus offer on another site and nothing on the one my money is currently in, so if I'm short of cash I have no choice but to cash out.

I've read that the US dollar is in a bad way at the moment, if that's true then it's currently I good time to put money into a new site and a bad time to cash out.

Sheriff Fatman · #8 05-01-2006, 04:33 PM

[ QUOTE ]
How many of you non-US guys has this happened to: you make a deposit from your bank and the exchange rate used to change from your local currency (mine is pounds sterling) to US$ is lower than the actual. Then you find some easy games to play and you play better than your opponents but have some bad luck, either bad beats or a long cold run of cards, and finish with about 5% up on your original US dollar amount. Then you cash out back to your local currency. When it arrives in your account you find it's less than what you originally put in. Although you "won" you actually lost.

As far as I can tell most poker sites do this, and if you are playing middle or high stakes games this hit with the exchange rate could actually be higher than the actual rate!! I know that at party they can send you a cheque in US dollars but my local bank then charges me an unfair exchange rate when I deposit it.

What is the law on how much poker sites are allowed to alter the exchange rates to screw us out of our money? Have you got any tips on how to minimise these extra fees? Thanks.

[/ QUOTE ]

Do you think this is any different to what banks/travel agents do to you when you exchange foreign currency?

Unfortuately, getting screwed on exchanging money is not exclusive to poker sites.

Sheriff

TylerD · #9 05-01-2006, 04:34 PM

Try and cash out through Party - very good exchange rate.

William · #10 05-01-2006, 04:59 PM

[ QUOTE ]
[ QUOTE ]
Always leave enough in the site or in neteller to go through some variance.

[/ QUOTE ]

You still get owned at 1.9% uncapped when you decide to cash out from neteller... The stupid thing would be to convert money in an out constantly and that can be avoided but you can't really avoid cashing out (as a winning player)

[/ QUOTE ]

If you use a debit card, Neteller first convets your $US to $CAN (charging you 1.9%) then when you withdraw, they convert the $CAN to whatever currency you are withdrawing to (charging you 1.9% again).

If you get a cheque from Neteller, any bank that is not US eller Can based will charge an unreasonable amount of money to clear it.

In other words, there is no way out....