Cheapest way to convert USD to BTC

[abs]

What is currently the cheapest way to get USD from a US bank account or cash to an exchange like btc-e? All I really want is bitcoins, so if there is an even better way to get BTC directly, I'm all ears. If I can avoid uploading scans of driver's license, utility bills, stool samples etc, that would be nice also, but my main focus is avoiding transaction costs and fees.

[Stephen Gornick]

What is currently the cheapest way to get USD from a US bank account or cash to an exchange like btc-e?

Dwolla is among the cheapest methods of moving funds from your bank account to an exchange.  The exchanges which accept Dwolla are Mt. Gox and Camp BX.  The cost is just $0.25 per transaction.   The drawback is that there is a 30-day probation period after your first funds are pulled into Dwolla before you can then transfer money to a Bitcoin exchange.

Another method is Coinbase.  They charge 1% and their exchange rate is close to Mt. Gox.  The problem is that they max out at $100 per transaction. 
 - http://www.CoinBase.com

For larger amounts, Bitcoins Direct, a "bulk" dealer, is inexpensive.  They have a minimum $1,000 per transaction limit though.  They also don't always have coins for sale.

BitMe allows cash deposit at a Chase bank location.  The problem is that the liquidity isn't always that great, and slippage can occur -- sometimes even for a few hundred dollar's worth.
 - http://www.BitMe.com

If you have or can get ING direct, then that method to BitFloor might work.  There is a history though following their security breach that you may wish to familiarize yourself with though before choosing this option.

So that leaves bank wire to an exchange (such as Mt. Gox).  Bank wires are a costly method for anything but larger transfers.

Now there may be somone local who is trying to sell.  Sometimes they are just looking to trade at the current exchange rate (no fees).
 - http://www.LocalBitcoins.com

[lmfaowtfomg]

What is currently the cheapest way to get USD from a US bank account or cash to an exchange like btc-e?

Dwolla is among the cheapest methods of moving funds from your bank account to an exchange.  The exchanges which accept Dwolla are Mt. Gox and Camp BX.  The cost is just $0.25 per transaction.   The drawback is that there is a 30-day probation period after your first funds are pulled into Dwolla before you can then transfer money to a Bitcoin exchange.

Another method is Coinbase.  They charge 1% and their exchange rate is close to Mt. Gox.  The problem is that they max out at $100 per transaction.  
 - http://www.CoinBase.com

For larger amounts, Bitcoins Direct, a "bulk" dealer, is inexpensive.  They have a minimum $1,000 per transaction limit though.  They also don't always have coins for sale.

BitMe allows cash deposit at a Chase bank location.  The problem is that the liquidity isn't always that great, and slippage can occur -- sometimes even for a few hundred dollar's worth.
 - http://www.BitMe.com

If you have or can get ING direct, then that method to BitFloor might work.  There is a history though following their security breach that you may wish to familiarize yourself with though before choosing this option.

So that leaves bank wire to an exchange (such as Mt. Gox).  Bank wires are a costly method for anything but larger transfers.

Now there may be somone local who is trying to sell.  Sometimes they are just looking to trade at the current exchange rate (no fees).
 - http://www.LocalBitcoins.com

Is there a reason you didnt mention coinbase in your reply in my thread? Not trying to be rude but im seriously curious, not sure if for a reason or you just didnt think about it, cause if coinbase lets you transfer money from your bank to it's wallet, and then to a different wallet for a low fee like that, it seems too good to be true.

[Stephen Gornick]

Is there a reason you didnt mention coinbase in your reply in my thread?

Well, they use the ACH network to transfer funds from your bank account.  This is the same method that PayPal supports (by linking your bank account), and Dwolla, Serve, etc. all use the same method.  You had said no ID, and a bank transfer implicitly has your ID (as the bank has your ID associated with your account.)

[lmfaowtfomg]

Is there a reason you didnt mention coinbase in your reply in my thread?

Well, they use the ACH network to transfer funds from your bank account.  This is the same method that PayPal supports (by linking your bank account), and Dwolla, Serve, etc. all use the same method.  You had said no ID, and a bank transfer implicitly has your ID (as the bank has your ID associated with your account.)

Derp, my bad. Thank you!

[MAC]

I have been using coinbase but it take linking your account and then 6 days after the transfer before they release the funds. In addition it's only $100-$200 per 24 hour period.

The quickest service I have found is BTCQUICK.COM they take credit cards and send pre-paid bitcoin over immediately. It's 7% I think.

[Sonica]

I like CoinBase as well.