Posted on 09 March 2017
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Thank goodness we have the internet to refer to for every day matters. Life is so much easier now than when we didn’t have the internet available to us, in our homes or on our smart phones. Anything you want to know is just a few clicks away and we can do this from the comfort of our homes.
This is where we can compare sites for many items we want to purchase. Where we find the best holiday deals and once we have found our next overseas destination, where to buy foreign currency online at the best rate possible.
There are numerous foreign currency exchange companies online, that offer a superb service. Many will give you a free quote and this is where it’s an advantage to do this online. It saves you time and energy, you don’t need to leave home. Gone are the days of traipsing around the exchange shops, travel agents and banks to see what the best offers available are. Today – everything is at your fingertips!
What you should look for when searching online currency exchange companies.
When searching the currency exchange websites, look for step by step guidance. Look at how many customers they have had plus, reviews and recommendations if possible. Look at the services they offer, including: can they help if you are transferring money abroad to friends or family? Maybe you are buying an overseas holiday home or emigrating for that matter. How can they help you and what will it cost you? What guarantees can they provide?
Currency exchange rates fluctuate daily and if you are exchanging a fair amount of money, you need protecting against the movement of exchange rates. Once you find a company who can provide what you are looking for, it’s a matter of opening an account with them, registering and an expert will guide you through the transfer process. Also look for a company being a member of the FCA (Financial Conduct Authority).
Which is the better option online currency exchange or a bank?
Usually it is cheaper to buy your foreign currency online; they offer the best deals, often with no transaction fees, no limit on transfers and the transfer can be done in minutes. You have choices with a range of currencies available anything from Euro to United Arab Emirates Dirham (AED) and many more. Bank transfers normally have a weaker exchange rate and charge higher fees, plus the processing time is from two working days, not immediately.
What is the foreign exchange market?
It’s also known as Forex, FX or currency market, is a worldwide over the counter (OTC) market for trading currencies. It determines the foreign exchange rates for every currency. It includes buying, selling and exchanging currencies at current or set prices.
What does exchange rate mean?
The exchange rate means how much a country’s currency is worth in a different currency. Example, how much GBP is worth in USD, Euro or AED?
The most frequently asked questions are:
How much is 1 euro to 1 US dollar?
How much is 1 GBP to 1 USD?
How much is 1 GBP to 1 Euro?
What is the pound to euro rate today?
What is the Pound GBP to euro Euro exchange rate?
Go online and check any of the exchange rate web pages, simply type in which currency you want to convert from, example 100 GBP into 100 USD or 100 Euro and the exchange rate will be given. You can check the rate offered between cash or transfer.
What does the exchange rate classifications mean?
For bank foreign exchange trading:
The buying rate – commonly called the purchase price, is the price used by the foreign exchange bank to buy foreign currency from the customer.
The selling rate – commonly called the foreign exchange selling price, it refers to the exchange rate used by the bank to sell foreign exchange to customers.
The middle rate – is the average of the bid price and the ask price.
Setting the exchange rate:
The basic rate – is a currency that is the most commonly used in international economic transactions.
The cross rate – after the basic exchange rate is worked out, the exchange rate of the local currency against other foreign currencies is calculated through the basic exchange rate.
According to foreign exchange controls:
The official rate – is the rate of exchange announced by a country’s foreign exchange administration.
The market rate – refers to the real exchange rate for trading foreign exchange in the free market. It fluctuates with changes depending on supply and demand.
What is the strongest currency in the world?
The Kuwaiti Dinar is the strongest currency and has the highest currency value. The Kuwaiti Dinar has been the highest currency of the world for quite some time now, due to the oil rich country’s economic stability.
Will the foreign currency provider buy back my left over foreign currency?
Once you return home you can contact the online provider who you bought your currency from and see if they will buy back any foreign currency you have left, most do. This is a question you can ask before using their services and may help you decide which provider to use.
Why would you need to compare online foreign exchange sites?
Foreign exchange comparison sites give you the best idea of what services they offer. You could be going on holiday abroad and would need to use local currency. If you are buying travel money you need to check the total cost (payable fees) not just the exchange rate.
Maybe you are investing in overseas property and you need to purchase your currency. Large international money transfers to be sent abroad are best via international money transfer centers. Transfer centres all provide this type of service. But do your homework first, look at the online providers and ask for recommendations.
There will be charges but remember, the companies are in competition and you will often find excellent fx rates being offered, all you need to do is look for them and compare fx rates. Look for sites with recommendations or ask someone who travels often, which company they use or recommend.
What to look for when comparing foreign exchange online sites?
Look at the overall charges, what is the commission rate they are asking for, are there handling costs, delivery charges or fees if you pay by credit card? Usually if you are charged a fee it will be a percentage of your total amount transferred.
What you need to search for are:
No commission fees
No handling costs
No fees incurred for paying by credit card
Free delivery of your currency
In all honesty, you most likely won’t have a completely free service but if you can find a good deal – snap it up! Most people look for low fees when comparing online foreign exchange sites. Check the rates daily, they do fluctuate and be ready to act on any deals, especially if you are making large currency transfers.
Currency transfer calculator
This is a great way of understanding how much your money will be worth after the conversation rate. For example if you have X amount of Great British Pounds (GBP) and you are exchanging to Euros (EUR) it will tell you the foreign exchange rate and how much you will receive in Euros.
It will also tell if you if there is a minimum transfer amount, how long the transfer will take (maybe an hour or could be several days) and if there is an online fee.
Compare our online currency exchange rates by clicking on the links at the top of the page.