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Not many people think to compare exchange rates
If you are sending money home, buying a property abroad or trying to get your hands on travel money for that well deserved holiday then you know too well the hassles of trying to get a good deal. Even with the internet and all the latest gadgetry the 21st century can throw at you, for most people this boring but essential tasks can often leave you not just frustrated but also out of pocket. How you ask? Keep reading and find out.
Always Compare Currency Exchange rates
DO NOT trust banks to save you money on exchange rates
Do you Compare Car Insurance? Comparing exchange rates can save you much more!
Technology today does offer us easy access to transfer providers and Foreign exchange services, but this has left customers with a plethora of choice without having the right method to bargain hunt. Although finding the right deal is both an art and science knowing to ask about the exchange rates services are offering and then being able to compare exchange rates available in the market are key to saving more of your money.
What are Exchange rates?
An exchange rate is "the price of a nation's currency in terms of another currency"
Currency Exchange takes place in the foreign exchange market
Exchange rates change constantly as the market is extremely volatile
According to Investopedia, an online encyclopaedia devoted to investment education, an exchange rate is simply defined as "the price of a nation's currency in terms of another currency". This means that a particular exchange rate quoted as e.g GBP/USD 1.6545 is the amount that the quoted currency (in this example the US Dollar) can purchase one unit of the base currency (here a single British pound). the rate for a particular currency pairing can fluctuate quite often as the foreign exchange market is known to be extremely volatile. for more on the foreign exchange market click on this article for a complete guide to foreign exchange.
Why Do I Have To Compare Exchange Rates?
You don't have to compare currency exchange rates to send money online, but it is wise to do so. When someone decides to make an international transfer the service you are using will have to exchange your currency for the currency of the country you are sending funds to then may charge you a transfer fee. This is where hidden costs can leave you out of pocket! Because without being able to compare the exchange rates of your transfer provider to that of a competing service you do not realise what you have lost and what you could have saved. Transfer Providers, especially your local bank, will tell you that there "fees" are small and let you focus on the obvious costs all the while diverting you from where you are really losing money which is in the exchange rate - the real key to getting a good deal.
Here is an example:
The Johnson family from London finally saved enough money to buy their dream house in Spain. The total cost for the three bedroom house was Euro 335,000. Once they agreed with the agency in Spain to buy the property Mr Johnson walked down to the bank to transfer the money. The bank teller explained that he would need to transfer £238,185 for the property agency to receive the agreed amount. The teller also explained that he would usually transfer the funds for £35 but because he was such a good customer he can take advantage of the reduced fee of just £20 - an exclusive deal only available today. The teller confirmed that the recipient should have the funds on the very same day. Mr Johnson breathed a sigh of relief and was sure he was one step closer to realising his family's long-term goals.
But while the bank employee was mumbling on about how low the transfer fees were Mr Johnson noticed that he also mentioned the exchange rate which was EUR/GBP 0.7110. Mr Johnson doesn't think much of this. Happy about the deal and eager to get on with his day the money was transferred and the Johnsons were now proud owners of their dream home in sunny Spain. The question is could Mr Johnson have saved and by how much? Well, let's do the maths!
The Johnson home costs Euro 335,000
Mr Johnson transferred £238,185
At an exchange rate of EUR/GBP 0.7110
Now, what would have happened If Mr Johnson did not rely on his local bank and shopped around for a good exchange rate? Let's say Mr Johnson contacted as many as 10 different businesses all money transfer providers and found a great rate of EUR/GBP 0.7104. The agency could receive their Euro 3350,000 simply by transferring as low as 237,984. The difference between the two is a whopping £200 which Mr Johnson could have used to book the whole families tickets to Spain! He could have saved £34 on fees alone as alternative transfer provider offer fees as low as £1 and some even waive their fees altogether.
If he realised how integral the exchange rate is to international transfers and how the transfer fees can even be waived, Mr Johnson would have thought to compare exchange rates from multiple providers. To find out what types of money transfer and currency exchange providers are out there read this article on how to make an international money transfer.
Best Way to Compare Exchange Rates
SendThatCash lets you compare exchange rates free!
We calculate the difference for you and show you the best results for currency exchange
Compare exchange rates with SendThatCash and save both time and money.
If Mr Johnson actually went bargain hunting to find the best deal on exchange rates he would have had to run around all over town. A better option is to simply compare all the safest, fastest and cheapest money transfer providers online. You can do this yourself and google "money Transfer" and "currency exchange" offering a vast array of businesses, but this leaves you with thousands of search results presenting company after company and no way to verify, distinguish and find genuine established and regulated providers. Luckily that's what SendThatCash are here for!
We offer you the best comparison you can ever find online. Using our own Live inter-bank Exchange rate feed updating every 5 minutes you can get a real-time comparison of different services. From online and tech savvy currency exchange platforms such as Currency Fair users exchange in real time to established reputable foreign exchange providers such as FC Exchange that can offer you bank beating exchange rates for transfers over £5000 and a dedicated representative to walk you through the whole process. So the next time you are at your local bank ready to transfer money abroad or whenever you would like to exchange currency make sure you focus on the exchange rate and not just the fee to get a great deal. Better yet, just compare on our site and find safe secure and fast providers that can put banks to shame!
Vorto Trading partners with SendThatCash for foreign exchange comparisonTue, 02 May 2017 - 12:32 AM