I want to transfer some money from Dwolla to MtGox however I've noticed that MtGox's Dwolla account isn't working. I've tried transferring using BitInstant to my MtGox account directly and that works fine, however BitInstant takes 3.99% of the amount I'm transferring as a fee which is pretty big when you start moving larger amounts. I'm wondering is there a way to transfer money to buy up some Bitcoins without losing so much to transaction fees?
Im not aware of a method other then BitInstant with the 3.99% fee. This can be confirmed at...
However, there are other ways to buy bitcoins besides USD deposits to Mt.Gox which may have lower fees.
There are other ways to use Dwolla funds to buy bitcoins. Camp BX is one exchange that accepts Dwolla funds for deposit.
Additionally, you could do an over-the-counter (OTC) trade with someone. There are individual traders who sell bitcoins and accept Dwolla transfers. The #bitcoin-otc marketplace lists some open offers, and there is a forum thread where those wishing to pay with Dwolla meet sellers.