When buying property in Paris and managing ongoing expenses from abroad, choosing the right currency conversion service can save you thousands. Let’s compare traditional currency exchange companies like MoneyCorp with digital platforms like Wise to help you make an informed decision.

Traditional Currency Exchange Companies: Pros and Cons

Advantages of Services Like MoneyCorp

Personal Service and Guidance Currency exchange specialists typically offer dedicated account managers who can provide personalized guidance—particularly valuable for large property transactions where timing and exchange rate movements matter.  When additional documentation or source of funds verification is needed, they proactively notify clients well ahead of time and assist with gathering the required information to ensure closing deadlines are met.

Forward Contracts and Watch/Limit Orders One significant advantage is the ability to lock in exchange rates months in advance through forward contracts. This protects you from currency fluctuations in the time between making an offer on a property and closing the deal. They also offer Watch Orders and Limit Orders, helping clients target a favorable rate and automatically securing their trade once this rate becomes available.  

Specialized Property Services Many currency brokers offer services specifically designed for property purchases, including working directly with notaires in France and understanding local requirements. They also work directly with US wealth managers/financial advisors and their clients, helping them plan for their large money transfer.

Higher Transfer Limits For large transactions like property purchases, established exchange companies typically have higher or unlimited maximum transfer amounts.

Security A currency broker like MoneyCorp will verbally confirm the recipient of bank details for extra security and to avoid any mistakes.

Disadvantages of Traditional Exchange Companies

Less Transparent Pricing Exchange companies often build their margin into the exchange rate rather than showing explicit fees, making it harder to compare true costs.

Higher Costs Overall While they rarely charge fixed fees, the exchange rate spread (difference between the mid-market rate and what they offer) is typically wider than with digital platforms, but typically much lower than the spread charged by a traditional bank. 

Limited Banking Functionality Currency exchange companies primarily focus on transferring money between currencies and accounts, but don’t provide banking features necessary for property ownership. For example, Moneycorp does not process direct debits for French utility and service providers.

Wise (Formerly TransferWise): Pros and Cons

Advantages of Wise

Transparent Pricing Wise clearly displays their fee structure and always shows you the mid-market exchange rate separately from their fees, making total costs immediately apparent.

Typically Lower Costs For most transfers, Wise works on smaller margins than those charged by traditional providers. 

Multi-Currency Account Features The Wise multi-currency account lets you hold multiple currencies, receive local bank details in various countries, and convert money only when exchange rates are favorable.

User-Friendly Experience The platform offers a streamlined digital experience with faster account setup and easy-to-use mobile apps.

Banking-Like Functionality Unlike traditional currency exchange services, Wise provides you with personal European IBAN details, essentially giving you a functional Euro bank account that can receive payments and make direct transfers to French entities.

Disadvantages of Wise

Limited Personal Support While customer service is available, you won’t get a dedicated account manager guiding your property purchase. However, Wise does offer some limited customer support for large one-time transfers like property purchases—contact them directly for more information on these services.

Fewer Specialized Services Wise focuses on the transfer itself rather than offering property-specific services or specialized advice.

No Forward Contracts Wise doesn’t offer forward contracts to lock in rates months ahead, though they do offer rate alerts and the ability to hold multiple currencies.

Transfer Limits and possible delays post transfer Depending on your verification level and location, you might face limits on how much you can transfer at once.  We have heard that while wise makes it quick and easy to secure a trade online, on certain transactions they will request additional documentation afterwards, potentially causing transfer delays. 

Property Purchase: Which Is Better?

For the one-time large transfer to purchase your Paris apartment:

Consider MoneyCorp or similar if:

• You’re making a very large transfer (hundreds of thousands or millions)
• The property purchase process will take months to complete
• You want certainty on exchange rates during a volatile period
• You need guidance on the international aspects of the property transaction

Consider Wise if:

• You’re comfortable managing the process yourself
• Cost is your primary concern
• The property purchase will complete relatively quickly
• The currency market is stable

For Ongoing Conversions

For regular transfers to manage your Paris property:

Wise typically excels here because:

• Lower fees have more impact on regular transfers
• The multi-currency account allows you to time conversions strategically
• Setting up recurring transfers is straightforward
• The mobile app makes managing ongoing transfers convenient

Can Wise Replace a French Bank Account?

A critical consideration when purchasing property in France is whether you’ll need a local French bank account. Unlike traditional currency exchange companies, Wise offers features that may eliminate this need for many property owners.

What Wise Can Handle Without a French Bank Account

Bill Payments and Transfers With your Wise Euro account, you can:

• Pay utilities (electricity, water, internet)
• Cover property taxes (taxe foncière, taxe d’habitation)
• Transfer building management fees (charges de copropriété)
• Pay contractors and service providers
• Receive rental income if you lease your property

Direct Debit Capabilities You can set up prélèvements automatiques (French direct debits) from your Wise Euro account—crucial for many French utility providers, property taxes, and insurance companies that prefer or require this payment method.

SEPA Transfers Wise fully supports SEPA (Single Euro Payments Area) transfers, allowing free or low-cost transfers to any Euro account within the EU.

When You Might Still Need a French Bank Account

Despite Wise’s banking-like features, certain situations may still require a traditional French account:

Mortgage Requirements If financing your property with a French mortgage, most French banks will require you to open a local account with them for mortgage payments.

Local Credibility Some French entities may be unfamiliar with Wise and prefer traditional French bank accounts, though this is becoming less common.

Insurance Policies Some property insurance providers in France may require payment from a traditional French bank account, though many now accept SEPA payments from any Euro account.

Credit Facilities If you need credit cards, overdrafts, or loans in France, you’ll need a traditional bank as Wise doesn’t offer these services.

Practical Approach for Property Owners

Many Paris property owners now take a hybrid approach:

• Using Wise for most regular payments and transfers, avoiding the fees and paperwork associated with French banks
• Opening a basic French bank account only if specifically required (e.g., for a mortgage or certain insurance policies)

This strategy gives you the convenience and cost savings of Wise while ensuring you’re not limited if certain French entities require a traditional bank account.

Making Your Decision

The right choice often depends on personal preference and specific circumstances:

• Amount: For very large sums, the dedicated service of a currency company might outweigh slightly higher fees
• Timing: If your purchase is months away, forward contracts from traditional providers offer peace of mind
• Banking needs: Consider whether you need a full French bank account or if Wise’s IBAN and payment features are sufficient
• Ongoing expenses: Evaluate which solution works best for both the property purchase and future payments

For many buyers, a hybrid approach works well: using a specialized currency service for the property purchase transaction, then managing ongoing expenses through Wise, potentially without the need for a separate French bank account unless specific circumstances require it.

Whichever option you choose, always compare specific quotes rather than general rates, and consider the total cost including all fees and exchange rate margins before making your decision.

Contact Paris Property Group to learn more about buying or selling property in Paris or to be introduced to a trusted mortgage professional.