Foreign Currency Exchange Companies Know That They Are Cheaper Than The High Street Banks

Category: Finance, Currency Trading.

The average person s foreign exchange transaction is in having to change their currency into that of the country they wish to visit. They do not worry too much about saving on the exchange rate for the relatively small amount in question.

This they do by going to the high street travel agent, or bank, Post Office. There comes a time when they may wish to make a much larger transaction abroad such as buying a car or a boat, but mainly a house. It is important to keep things simple and easy to understand. This of course is a different cup of tea, and it is much cheaper to use the services of foreign currency exchange companies who can arrange cheaper quotes than the high street banks, therefore making it possible to save considerable money. Take an example of a Mr Smith wanting to buy a property in France. He adds it all up and comes to a total amount he will need to have in the foreign currency in this case the Euro.

He needs to have a sum to cover the cost of the house and a sum to cover the other payments such as agent s fees etc. He has to get the required Euros. More than likely he will go to his bank to see what amount of Sterling they will require from him to purchase that foreign currency and send it to the seller. He now begins to realize that the price of the house also has a cost of the currency exchange rate to consider. It is at this point he ought to be prudent. However, Mr Smith should spend a little time checking with some of the foreign currency exchange companies and get a quote from them too!

It is a good idea to go to the bank and get a quote as to how much it would cost to buy the required Euros and to have them sent to their destination. Mr. In short, a buyer like Mr. Smith may find that he could save himself a nice few thousand because the rates that he could get will be undoubtedly cheaper than those from the high street bank. Smith might find the best way to proceed as follows: Open a bank account in the country and place where he is buying the house. Try to find the best currency exchange rate from the many companies that deal in foreign exchange.

This is quite easy and the local estate agent will be pleased to introduce him to a bank. After finding the best deal, have the currency sent directly to his account at the bank abroad. Currency rates change all the time and you have to bear that in mind, so the question is what is the percentage you would be charged above the live rates. It is worth a few phone calls to very likely save big money. Live rates are easy to find free on the internet. However, the degree of this difference is what you are after.

You cannot get access to buy at these rates and there will always be a difference between the live rates and the rates you will get quoted. It pays to check to find a good deal. Obviously, if you are talking about ten thousand as opposed to hundreds of thousands this will count. To be fair you have to say what amount you are requiring to change because this may make a difference to the rate you will get. Money is sent by electronic transfer and banks charge for this usually between 25 and 35 pounds when sending money abroad bank to bank. Foreign currency exchange companies know that they are cheaper than the high street banks. The foreign currency exchange companies do not usually make a charge because they already calculate it within the rate of exchange in their quote, which is very fair since they will invariably give a better quote for currency rates than the high street bank who will charge the transmission cost as well!

Can you imagine that they could exist if they were not cheaper? When you go to a restaurant it is the chef that matters. Apart from that they are more focused on this type of business because they are specialists in this field. When you go to a hairdresser it is the cutter that matters. With the foreign currency exchange companies you have personal attention to your particular needs by a specialist. When you go to a garage it is the mechanic that matters.

Above all, you can save money.

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