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How to Convert AED to GBP

By May 5, 2024May 12th, 2024No Comments

Considering an international payment from AED to GBP? If so, there are some key points to understand before proceeding. The top three publicly traded banks in the United Arab Emirates, ranked by market capitalisation, are ‘First Abu Dhabi Bank,’ ‘Emirates NBD,’ and ‘ADCB.’ While banks like these in the Emirates can facilitate your currency conversion, it’s important to note that the associated transfer costs can be significant. For instance, if you intend to convert Emirati Dirhams to British Pounds and execute an international payment via the Swift network, these banks typically impose a small wire transfer fee along with a mark-up from the inter-bank exchange rate. This mark-up can sometimes reach as high as 5%, varying based on the size of the conversion. To secure the most competitive exchange rate, based on the volume of currency you’re converting, consider using a currency broker. They can provide you with spot FX trades at significantly reduced costs, and in most cases, without any fees.

What is the current Inter-bank rate for AED to GBP?

The rate displayed above is represents the current inter-bank exchange rate for AED to GBP. Rutland FX will then apply a markup to this rate, which varies depending on the amount of currency you wish to convert you can get an exact quote based on your requirements here.

How does a conversion from AED to GBP work with Rutland FX?

When you register for a Rutland FX account and your account is enabled by our onboarding team, we will provide you with an AED currency account for you or your business in the UK. The account will be in your personal or business name, depending on whether you registered as a personal or business customer. The AED bank account we provide will include an IBAN number and a BIC/SWIFT code for you to facilitate the transfer of AED funds. Once the funds arrive in your Rutland FX AED account, you’ll have the option to convert them at a more competitive exchange rate through our platform or by contacting your account manager via call or email to process it on your behalf. No conversion will take place without your explicit consent, and you can also review the exchange rate before agreeing to the transaction. Upon acceptance and processing of the conversion, we will then remit it to a GBP bank account of your choice or hold the GBP in your Rutland FX account until further instruction from you.

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How Long does it take?

A SWIFT transfer from AED to the UK typically takes 1-4 business days. Once the funds arrive in your Rutland FX account, you will receive an automatic email notification. Additionally, you can track the payment status using an MT103 SWIFT message. Upon receipt of the AED in your account, we can book the conversion on the same day and remit the GBP to you the following day. This is usually processed as a same-day transfer using faster payments or SWIFT so you should have the funds the same day that we dispatch you GBP.

Are there any Fees?

Rutland FX does not charge any fees for conversions or international payments. Additionally, there are no fees to set up an account, and our multi-currency account is also free of charge. Rutland FX will apply a significantly smaller markup than a bank would for exchange your currency, the markup we apply will be volume dependand, you can get a quote here.

What about Intermediary Fees?

Intermediary (corresponding bank) fees are small charges, typically ranging between £5 and £25, deducted from a small number of international payments (SWIFT) before they reach the beneficiary. These fees are not imposed by Rutland FX, and the majority of payments processed through us will not incur intermediary fees. However, if such fees are applied, the amount deducted depends on the intermediary banks involved in that specific payment route. In cases where you transfer AED into your Rutland FX account and an intermediary fee is applied, Rutland FX may in some cases reimburse you for this fee. Alternatively, you can transfer the funds as ‘ben’ (beneficiary), and we will cover the cost for you.

What If The AED Does Not Arrive by The Settlement Date?

If you booked AED to GBP as a spot FX trade spot trades will have one of three value dates:

  • “Tod” (Today): This means you’re booking the currency for immediate conversion and should settle the trade at your earliest convenience.
  • “Tom” (Tomorrow): This indicates booking the currency for the next business day; settle the trade by or before the cut-off time on the following business day.
  • “Spot” (Today+2 days): This represents the longest settlement window before the trade is considered a forward contract. Settle the trade by the cut-off time on the third day.

If a spot trade is not settled by the cut-off time on the settlement date, the platform will automatically swap your trade to the next available settlement date to give you extra time to settle. If the funds you send to settle your trade arrive after the cut-off time, any instructed payments linked to the spot FX conversion won’t be dispatched until the next trading day.

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Is Rutland FX FCA Regulated?

Rutland FX is a UK-based financial technology company (FinTech) that has assisted businesses and individuals in reducing the cost of cross-border payments and managing currency risk for over 7 years. The Rutland FX trading platform is powered by “Currency Cloud,” a subsidiary of Visa. The Currency Cloud Limited is regulated and authorised by the Financial Conduct Authority (FCA) as an Electronic Money Institution (EMI), under the firm reference number 900199. This authorisation level is equivalent to that of PayPal. You can verify this information by searching the firm reference number on the FCA website and checking the “Firm Status”. You can read more about how we protect your funds here.

How do I get started with Rutland FX?

To open an account with Rutland FX, you will need to register online here. After submitting your application, our onboarding team will review it. If no further information is needed, your account will be enabled the same day. Multi-currency accounts will then be immediately available. At this stage, your account manager will also contact you to address any final questions and guide you through the platform.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.

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