The best foreign currency accounts in Australia
last updated time: 5 June 2024
Looking for the best foreign currency account for fast and easy cross-border payments? We compare the top five multi-currency accounts in Australia for businesses.
Key takeaways
- A foreign currency account or a multi-currency account allows you to hold, manage and transact in multiple currencies
- When comparing foreign current accounts, consider the number of supported currencies, transaction fees and currency conversion rates
- Other things to take into account are the speed of transfers and additional services such as forward contracts or accounting software integration
Introduction
Foreign currency accounts offer several financial benefits for global businesses. They let you hold and manage money in multiple currencies, so you can pay suppliers in the same currency your customers pay you, reducing the need for conversions. Additionally, these accounts often provide competitive exchange rates and the flexibility to convert currencies when rates are favourable.
There’s some research involved if you’re in the market for a new foreign currency account. To make things easier, we’ve rounded up the best foreign accounts in Australia.
Table of Contents
What is a foreign currency account?
A foreign currency account or a multi-currency account allows you to hold, manage and transact in multiple currencies.
You can hold funds in a multi-currency account to make payments to suppliers or withdraw them into your bank account when exchange rates are favourable.
For instance, if you’ve received funds in USD from customers in the USA, you can hold those funds in your foreign currency account and use them to pay your American suppliers.
How do I compare foreign currency accounts in Australia?
Here are the main factors to consider when comparing foreign currency accounts in Australia.
Number of supported currencies
While some foreign currency accounts support over 10 currencies, others only support two or three . When considering a foreign currency account, look for a service provider that supports all the major currencies your business will require.
Transaction fees and other costs
Foreign currency accounts can be a cost-saving solution if you make frequent foreign transactions. But some have fees attached to different account activities, such as receiving payments or holding funds. You should read the fine print before opening a new foreign currency account. Common fees to look out for include conversion fees, transaction fees, monthly fees and account set-up fees.
Currency conversion rates
Compare currency rates of different payment payment providers. While banks add a markup to live exchange rates, there are payment providers that offer interbank exchange rates.
Account balance
Some foreign currency accounts require you to keep a minimum account balance.
Security
Look into the security measures used by the foreign currency accounts. Do they offer two factor authentic and fraud monitoring? Are they regulated and licenced by the major government bodies? How are the funds stored? Are the funds invested or segregated?
Money transfer speed
Look into how long it takes for money to arrive in your supplier’s bank account or for you to receive money from customers.
Top foreign currency accounts in Australia
| Number of currencies |
WorldFirst: 15+ currencies Westpac: 15 currencies NAB: 16 currencies CommBank: 14 currencies Wise: 10 currencies |
|---|---|
| Account setup fee |
WorldFirst: Zero Westpac: Zero NAB: Zero CommBank: Zero Wise: AUD 22 |
| Fee for receiving payments |
WorldFirst: Zero Westpac: AUD 12 per transaction NAB: Up to AUD 12 per transaction CommBank: Up to AUD 11per transaction Wise: Zero fees for AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, TRY and USD |
| Fee for sending payments |
WorldFirst: Fixed transaction fee + up to 0.6% margin Westpac: Up to AUD 20 per transaction + current foreign exchange rates NAB: Up to AUD 30 per transaction + current foreign exchange rates CommBank: AUD 6 per transaction via NetBank and AUD 30 via branch + current foreign exchange rates Wise: Varies per currency + margin from 0.43% |
| Fee for holding currency |
WorldFirst: Zero Westpac: Monthly deposit maintenance fee NAB: 1% annual fee when you exceed NAB’s threshold amounts CommBank: Zero Wise: Zero |
| Fee for same-bank transfers |
WorldFirst: No transaction fees *Currency conversion rates apply in case of cross-currency transfer Westpac: Same as normal account transfers NAB: AUD 30 fee for banker-assisted transfers *Currency conversion rates apply in case of cross-currency transfer CommBank: No transaction fees *Currency conversion rates apply in case of cross-currency transfer Wise: No transaction fees *Currency conversion rates apply in case of cross-currency transfer |
| Forward contracts |
WorldFirst: Yes Westpac: Yes NAB: Yes CommBank: No Wise: No |
| WorldFirst | Westpac[1] | NAB [2] | CommBank [3] | Wise [4] | |
|---|---|---|---|---|---|
| Number of currencies | 15+ currencies | 15 currencies | 16 currencies | 14 currencies | 10 currencies |
| Account setup fee | Zero | Zero | Zero | Zero | AUD 22 |
| Fee for receiving payments | Zero | AUD 12 per transaction | Up to AUD 12 per transaction | Up to AUD 11 per transaction | Zero fees for AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, TRY and USD |
| Fee for sending payments | Fixed transaction fee + up to 0.6% margin |
Up to AUD 20 per transaction + current foreign exchange rates | Up to AUD 30 per transaction + current foreign exchange rates | AUD 6 per transaction via NetBank and AUD 30 via branch + current foreign exchange rates | Varies per currency + margin from 0.43% |
| Fee for holding currency | Zero | Monthly deposit maintenance fee | 1% annual fee when you exceed NAB’s threshold amounts | Zero | Zero |
| Fee for same-bank transfers | No transaction fees*Currency conversion rates apply in case of cross-currency transfer | Same as normal account transfers |
AUD 30 fee for banker-assisted transfers *Currency conversion rates apply in case of cross-currency transfer | No transaction fees*Currency conversion rates apply in case of cross-currency transfer | No transaction fees*Currency conversion rates apply in case of cross-currency transfer |
| Forward contracts | Yes | Yes | Yes | No | No |
| WorldFirst | Westpac[1] | NAB [2] | CommBank [3] | Wise [4] | |
|---|---|---|---|---|---|
| Number of currencies | 15+ currencies | 15 currencies | 16 currencies | 14 currencies | 10 currencies |
| Account setup fee | Zero | Zero | Zero | Zero | AUD 22 |
| Fee for receiving payments | Zero | AUD 12 per transaction | Up to AUD 12 per transaction | Up to AUD 11 per transaction | Zero fees for AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, TRY and USD |
| Fee for sending payments | Fixed transaction fee + up to 0.6% margin |
Up to AUD 20 per transaction + current foreign exchange rates | Up to AUD 30 per transaction + current foreign exchange rates | AUD 6 per transaction via NetBank and AUD 30 via branch + current foreign exchange rates | Varies per currency + margin from 0.43% |
| Fee for holding currency | Zero | Monthly deposit maintenance fee | 1% annual fee when you exceed NAB’s threshold amounts | Zero | Zero |
| Fee for same-bank transfers | No transaction fees*Currency conversion rates apply in case of cross-currency transfer | Same as normal account transfers |
AUD 30 fee for banker-assisted transfers *Currency conversion rates apply in case of cross-currency transfer | No transaction fees*Currency conversion rates apply in case of cross-currency transfer | No transaction fees*Currency conversion rates apply in case of cross-currency transfer |
| Forward contracts | Yes | Yes | Yes | No | No |
*Fees as checked at the time of writing this blog in April 2024.
WorldFirst
WorldFirst allows global businesses to make fast, secure, and reliable international payments in 40+ currencies across 130 countries and regions.
With a WorldFirst foreign currency account, you can open local accounts in 15+ currencies including GBP, USD, EUR, AUD, JPY, NZD, SGD, HKD, CNH and CAD. WorldFirst offers interbank/ mid-market exchanges with no markups or hidden fees. You can collect payments from 100+ marketplaces and payment gateways. Your World Account also integrates with third-party accounting tools like Xero and Netsuite.
There are no costs for setting up a multi-currency account or receiving payments. Forward contracts are also available, allowing you to lock-in exchange rates for up to 24 months.
Westpac
Westpac offers foreign currency accounts in 12 currencies, including USD, GBP, JPY, and SGD [1]. No minimum amount is required to open a foreign current account. But sending payments required a linked Westpac transaction AUD account. The bank charges a flat fee for sending and receiving payments.
Check out the Westpac foreign currency account review
NAB
NAB provides foreign currency accounts in 16 currencies, including USD, EUR, and HKD. They charge an intra-account transfer fee of AUD 30 for each transaction [2]. Additionally, holding large balances may incur a foreign currency holding fee. There are no account opening fees, monthly fees, or minimum balance requirements. The maximum amount you can hold in each local currency may vary depending on market conditions.
Check out the NAB foreign currency account review
Commonwealth Bank
Commonwealth Bank supports 14 foreign currencies, including USD, GBP and EUR [3].
The foreign currency exchange rates include a margin. The bank charges up to AUD 30 per transfer for sending money and up to AUD 11 per transfer for receiving money [3]. Transfers between CommBank accounts are free. The account can only be opened from CommBank branches–not online.
Check out the Commbank foreign currency account review
Wise
Wise Business’s multi-currency account allows customers to access local account details for over 10 currencies, including AUD, CAD, USD and EUR [4].
There are no monthly fees, but you need to pay a one-off fee to register and for a multi-currency account. You’re also charged a fixed fee every time you receive a USD wire payment. The fee for sending money depends on the currency. There are also no forward contract options.
Check out the Wise business account review
WorldFirst simplifies payments for SMEs
We aim to simplify international transactions for small businesses and SMEs. A World Account makes it easy for businesses to send payments to suppliers and collect payments directly through leading marketplaces and payment gateways.
You get a centralised platform to manage all global and local transactions in one place without worrying about high conversion fees.
A World Account lets you collect overseas sales revenue from 100+ marketplaces and payment gateways like Amazon, eBay and Stripe. You can send payments to overseas suppliers directly while saving on conversion fees and transaction costs.
Some of the leading features of the WorldFirst foreign currency account, include:
Cross-border payments: Pay suppliers and other business partners in 40+ currencies. Save up on currency fees and instead focus on building long-lasting business relationships
Seamless integration with marketplaces: Collect payments from 100+ marketplaces and payment gateways, including Amazon, eBay, AliExpress, and Stripe.
Make instant payments: Payments are free and instant between World Accounts.Protect profit margins: Lock-in exchange rates for up to 24 months with forward contracts
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
Source
- https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/cb/foreigncurrencyaccount.pdf
- https://www.nab.com.au/content/dam/nab/documents/rates-and-fees/banking/nab-business-banking-guide-to-fees-charges.pdf
- https://www.commbank.com.au/content/dam/commbank/personal/apply-online/download-printed-forms/ADB1784.pdf
- https://wise.com/au/pricing/business
- https://wise.com/us/blog/how-to-send-money-wise-to-wise
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- Almost 1,000,000 businesses have sent USD$150B around the world with WorldFirst and its partner brands since 2004
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