WISE new fee on 18 June, crazy.

[nobel]

on 18-06-2022 some of our fees will change for the following currency routes:
• EUR, GBP and CHF transfers to all target currencies
• Transfers to RON, PLN and CZK from all source currencies
The limits and fees for holding EUR will also be changed from 18-06-2022:
• Retail clients will be able to hold up to 3,000 EUR for free
• Business customers will be able to hold up to 30,000 EUR for free
• The fee for any amounts above these limits is 0.90% per year
Why are we increasing our fees?
• We've recently introduced additional verification measures to protect your money.
• Markets have been more volatile, making it more expensive for us to buy and sell currencies.
• Negative interest rates in the Eurozone mean that it is more expensive for us to hold large amounts of EUR for our clients.

 

[JohnnyDoe]

• We've recently introduced additional verification measures to protect your money.

That is: you need to pay more for the privilege of having your funds frozen.

 

[gab1]

I would love to know of a cheaper alternative (that is not Revolut), will seriously consider switching.

 

[void]

I would love to know of a cheaper alternative (that is not Revolut), will seriously consider switching.

maybe paysera?

 

[maxmoney]

Well, if you just don't keep more than 30K in there it will be fine. As we have discussed many times, you should not hold large amounts in any EMI!

 

[nobel]

Well, if you just don't keep more than 30K in there it will be fine. As we have discussed many times, you should not hold large amounts in any EMI!

Well, I have a private account and to pay from 3K minus 0.9% is already too much.

 

[jakubko666]

stablecoins are the answer my friends

 

[JohnnyDoe]

stablecoins are the answer my friends

Better to diversify among the 3 major usd stablecoins (usdt, USDC, dai).
There are also Eur stablecoins coming up, mainly EURT. Liquidity is not big, but it doesn’t impact usability in the low 6 figures.

 

[Martin Everson]

• The fee for any amounts above these limits is 0.90% per year

The ECB deposit rate to hold funds has stood at -0.50% since 2019. Why they charging nearly double now?

Why are we increasing our fees?
• We've recently introduced additional verification measures to protect your money.
• Markets have been more volatile, making it more expensive for us to buy and sell currencies.
• Negative interest rates in the Eurozone mean that it is more expensive for us to hold large amounts of EUR for our clients.

Why don't they just be honest and admit that since they became a listed company on London Stocks Exchange they are at the mercy of the shareholders to show a return on equity to them .

Wise share price has slumped since it listed last year.

https://finance.yahoo.com/quote/WISE.L

 

[Sols]

Wise going public is starting to look like a failed experiment. An almost 100% margin on ECB negative interest rate is a worrying sign of what might be to come. No "verification measures" cost that much.

 

[RealDude]

No "verification measures" cost that much.

How much does it cost?

 

[Sols]

How much does it cost?

Depends on a lot of factors but they are charged at a fixed rate. Could be anywhere from a few EUR per transaction down to a few cents, depending on how advanced the system used is. As an example, if you're sending money from one account to another account, there are more checks (and therefore more cost) the first time than the second time.

 

[Martin Everson]

Well I think its clear from below link that their operating costs have gone through the roof and affecting their bottom line. Their profit margin has not done much due to that. As I said before on here some years ago an EMI is one the lowest margin unprofitable businesses to operate as a legit operation.

https://www.msn.com/en-us/money/stockdetails/financials/lon-wise/fi-c2p1z2
P.S Would like to see what period end date 31/3/2022 figures look like for wise. But get ready for a raft of account closure of unprofitable relationships.

 

[JackAlabama]

Well I think its clear from below link that their operating costs have gone through the roof and affecting their bottom line. Their profit margin has not done much due to that. As I said before on here some years ago an EMI is one the lowest margin unprofitable businesses to operate as a legit operation.

https://www.msn.com/en-us/money/stockdetails/financials/lon-wise/fi-c2p1z2
P.S Would like to see what period end date 31/3/2022 figures look like for wise. But get ready for a raft of account closure of unprofitable relationships.

Yes, do not hold money with them, especially in those currencies which do not yield as balances will cost them.
Make a lot of conversions between own accounts but do not hold any cash on it. Then you are a profitable customer to them.

 

[SirGRA]

I'll be moving my money elsewhere. Wise is going down the drain.

 

[polonieth]

Seems like only 5 minutes ago they charged a fee for those with over 15k euros, now it's 3k euros and 0.90%. Garbage.

The ruble is the future.

 

[clemens]

Why don't they just be honest and admit that since they became a listed company on London Stocks Exchange they are at the mercy of the shareholders to show a return on equity to them .

well, they are like any other business growing that fast.

 

[jakubko666]

Better to diversify among the 3 major usd stablecoins (usdt, USDC, dai).
There are also Eur stablecoins coming up, mainly EURT. Liquidity is not big, but it doesn’t impact usability in the low 6 figures.

Your list is not correct.

 

[JohnnyDoe]

Your list is not correct.

Then please correct it

 

[Barbanera33]

I would love to know of a cheaper alternative (that is not Revolut), will seriously consider switching.

why not Revolut?