The United States Dollars (USD) is the world's most traded currency, dominating the foreign currency exchange market by 58%. It is also one of the top 10 strongest currencies in the world alongside the British Pound.

USD is acceptable for global payments, which makes it an alternative option for UK residents and business owners. Here’s a complete guide on the best UK banks for holding a USD account without hidden fees.

There are many benefits of holding a USD account in the United Kingdom. It offers cheaper and faster payments via ACH or Fedwire and is a great option for currency diversification, helping you to mitigate risks in foreign exchange.

According to an article by Craig Anthony on Investopedia, diversification is an investment strategy and can be done by putting money in foreign assets, which most individual investors prefer.

However, an investment portfolio is prone to currency risk except if the foreign securities are denominated in USD.

Every UK resident, investor, and business owner should consider holding a USD account to take advantage of its numerous benefits. Stay tuned to learn more about them, as we look into some of the best UK banks for currency diversification.

Fees compared: Best UK banks for holding a USD account without hidden fees

If you often send or receive money in United States Dollars, consider opening a USD account for enormous financial benefits. The table below shows the monthly fees of some of the best UK banks for holding USD:

Top 5 banks for having a USD account in the UK.

Here are the top 5 banks that allow you to save and initiate transactions in USD, including their benefits, requirements, and account opening guidelines:

1. Ohentpay

OhentPay is available in over 190 countries and is approved by the UK government.

Not only is OhentPay widely known for facilitating international money transfer with competitive rates, but also for providing multiple foreign currency accounts (GBP, USD, EUR, CHF, NGN, etc.) that let you send and receive money quickly at low fees.

To get started, you will need to install the OhentPay mobile app for free from Google Play Store or Apple App Store. You can also install the app by scanning the QR Code on their website.

OhentPay charges a flat fee on transactions instead of percentages, so you can be confident of no hidden charges, whether you want to make international money transfers, currency exchanges, or any other transactions. Their USD account is ideal for both personal use and business transactions.

Additionally, they have a dedicated support team that quickly attends to inquiries and provides technical assistance if needed. Feel free to check their customer reviews from their official website or your app store.

Benefits of operating an HSBC currency account.

• No monthly account fees.
• Easy access to your account via online banking anywhere, anytime
• Set up payments online for up to a year in advance or on a recurring basis
• Real-time foreign exchange rates
• Open multi currency accounts.

2. HSBC UK

The US Dollar is one of the available currencies in HSBC's Currency Account. This account type is exclusively for current account holders, and it allows them to easily manage more than 14 different currencies.

Depending on your preference, you can open a separate account for each currency to save, send, and receive money of different currencies in multiple accounts.

However, the account does not come with a debit card, meaning you will have to rely heavily on bank transfers.

Eligibility criteria for HSBC currency account

To open a Currency Account with HSBC, you must meet the following requirements:

• Be at least 18 years old
• Hold an active current account with HSBC. If you have a Basic Bank Account or are not yet an HSBC customer, you still need to apply for a current account to proceed.

If you meet these requirements, you can apply for your own currency account online or call any of these numbers between 8 AM and 8 PM, depending on your case:

• +44 1226 260 260 (Outside the UK)
• 03457 707 070 (HSBC Premier customers)
• 03457 404 404 (All other customers)

3. OFX

OFX is an international money transfer and currency exchange platform founded in 1998. They have an excellent rating of 4.4/5.0 on Trustpilot from over 10,300 customer reviews. Their Global Currency Account is exclusively for e-commerce and business owners and is a better alternative to overseas business bank accounts.

It allows you to hold funds in USD and six other foreign currencies, as well as convert them whenever you want. They charge a flat fee or a percentage on same-currency transfers.

When you open a USD account with OFX, you will get an account number, Routing Number (ABA), and SWIFT/BIC, which you can use to receive payments worldwide.

How to open OFX Global Currency Account

Take the following steps to open a Global Currency Account with OFX:

• Visit the OFX Global Current Account webpage.
• Click ‘Register’ in the top-right corner of the page and provide the required information.
• After completing the online registration process, await a call from OFX where you will need to answer some simple questions.
• Submit the required documents to verify your account.

OFX will approve your new USD account within four business days and deliver your account details in two business days or less.

4. Barclays Bank

Barclays Foreign Currency accounts allow you to hold money in any currency of your choice. You can apply for an account in USD, AUD, HKD, NZD, ZAR, CAD, DKK, NOK, SEK, EUR, CHF, or JPY. To open a foreign currency account with Barclays Bank, you will need to visit the nearest branch or call 0345 975 7575 for support.

As soon as you open your account, you can start sending and receiving foreign payments in US Dollars using the online banking service or at the nearest branch.

Requirements for Barclays Foreign Currency accounts

To open a USD account with Barclays Bank, you must satisfy the following criteria:

• Must be at least 18 years old
• Must be a UK resident
• Must have had an active sterling current account with Barclays for six months or more. If you hold a Barclays Basic Current Account, you are ineligible to open a foreign currency account with Barclays Bank.

5. Lloyds Bank

As one of the best UK banks for holding a USD account without hidden fees, Lloyds Bank International Current Account only charges a monthly account maintenance fee of $10. Even if you open multiple accounts for different currencies, you'll be charged a single fee for all of them.

Eligibility criteria for Lloyds Bank International Current Account

To open an International Current Account with Lloyds Bank, you must;

• Have a gross annual income of £50,000 or its equivalent in USD. If you don't meet this requirement, you can also apply if you have an equivalent of £25,000 to save with the international banking services
• Must be willing to make an initial deposit within 30 days of opening the country.

When you hold a foreign currency with any of the UK banks recommended in this article, you’ll wake up with no surprises of hidden and unexpected charges from your account. These accounts will let you send and receive money in USD without currency conversion, being a globally accepted currency. 

What makes it more interesting is that you only need to call your bank or log in to your mobile or Internet banking service to open a USD account.

Before opening a multi-currency with any bank, ensure you confirm your eligibility, check all relevant fees, and compare each account’s benefits.