The exchange rate for a currency means the rate at which you can officially exchange one currency for another. It depends on economics and geopolitics mainly. The best exchange rates is a notion that supposes there are good and bad exchange rates. It’s true. Depending on which service provides which exchange rate, there are huge differences. The services offering exchange rates are numerous: from banks to google, and from currency exchanges to online money transfer operators.
There is not only one exchange rate. Some of them are better.
Some exchange rates are better than others because there are fees associated to exchange rates but also because it’s not easy to get the best one.
First, it’s not easy to obtain the best exchange rates because even though Reuters tells you the mid-market exchange rate is this one, you will need to get it and only robots are going to obtain this mid-market exchange rate. On the other hand the exchange rates providers are used to provide them in exchange for a fee. This fee is most of the time variable and most people don’t know there are fees included in the exchange rate. They have to be added to the fix fees and it makes you pay sometimes more than 10% in fees.
Can we find the best exchange rates somewhere?
Yes. Virtually. It’s easy. On google, Reuters, bank websites sometimes. However I would say it’s not possible anymore to find the real exchange rate on XE for example, just because it belongs to a money transfer company… which applies a lot of hidden fees already.
You can find a better exchange rate than a friend by comparing the options first and challenging the operators. Online operators are usually the cheapest.
If you find the best exchange rates one day you’re going to need to invest a lot of time. The most important is to have a quite good exchange rate. Don’t get screwed by banks. You have to know that there are hidden fees.
It’s what all financial services say. “Find here the best exchange rates”. “I offer the best exchange rates”. “No fees”. “No variable fees”. “No admin fees”. “No fix fees”…
How do they make money? By charging hidden fees… What are hidden fees? All the fees that are not mentioned in their tricky advertisements..
Why you will never find the best exchange rates by stopping by at the ones which offer them
The ones offering the supposed best exchange rates are currency converters, cash converters, currency specialists. Let’s think a bit about the ones in the airport. They have to pay a huge rent and they offer the best rates? Do you really think so? There is no chance the rates are the best ones in the currency market. On the other point of view let’s take a look at the money transfer companies which operate online. When you see their advertisement offering the best Euro-USD exchange rates, are you really believing that the company is advertising for free? So sometimes there are special deals. However you would need to make only one use of each service so that you profit from all the offers.
What are exchange rates hidden fees?
Hidden fees are applied in the financial industry for one simple reason: it’s authorized. There is no industry standard against hidden fees. Unfortunately it allows wrong advertisement and it’s not good for people. It’s good for banks…
How to find out about the hidden fees: it’s said all over the documents that there is no fee but there is a small mention about the fact that they apply a special exchange rate. This one is very different from the one you find on Google, Reuters, Neomy or Xe…
You will never find the best exchange rates because the ones who are telling they offer them are not. Indeed they are paying advertisements to make you consume their products so they need to be profitable. Their return on investment comes from the fact that people think there is no fee while they are paying growing hidden fees. Hidden fees are tricky.
There is one solution to find the best exchange rates though: you have to use all the special deals on the market. For this using a comparison service for exchange rates or for money transfers is the best solution but it has to be simple and powered in real time.
Theresa May’s officialization of the Brexit has huge potential consequences. Especially concerning the Euro exchange rate. After this event, how is it possible to get the best Euro exchange rate so that we might be able to transfer our pounds (GBP) to euros? Or the other way around? This is the first question. The second question is “how huge is the impact on our currency going to be?”
Set exchange rate alerts. Watch the best Euro exchange rate in real time.
Getting the best Euro exchange rate is what matters the most after the officialization of article 20 by Theresa May. Now the question we might need to google is how are we going to receive those notifications about exchange rates? Should we be watching exchange rates the whole day? How long are there going to be movements on the exchange rate graphs? Is the relation between Euro and GBP going in the good or in the bad way? What really matters? I think it’s clear that everybody living abroad such as expatriates, people retired abroad and international students will need to take a look at exchange rates so that they will profit from the Euro evolution. Every Brit in Europe is going to be impacted for a certain number of days.
Why Theresa May should never have had in mind to officialize the Brexit
Officializing the Brexit means getting less power for the pound. The GBP is probably going to suffer because of this. What is the matter if you stay in the UK? Even though the best Euro exchange rate belong to the past, English people will have to import at a higher cost. And I don’t speak about holidays or even investing in foreign property such as buying a house in France or Spain. Brits who bought property in Spain, France, Italy and Portugal are going to have a much smaller return on investment if the GBP EUR exchange rate is far weaker. People on holidays there, or retired there, are going to need to spend more pounds for the same things…
We don’t know how long it’s going to take but the best Euro exchange rates are going to move a lot in a few days. Better subscribe online for exchange rate notifications. And then pray for not having to suffer from a weaker pound.
Finding the best exchange rate is not easy. Sometimes we need to send money. Sometimes we just have a certain amount – it can be a large amount – that we have in a foreign bank account and we want to transfer this amount within a few months/years. When the question is about finding the best dollar exchange rate it’s a real challenge. The challenge is about determining which bank is going to provide you with the best dollar rate. At which moment you should transfer. Moreover you need to screen the fintech market for brokers or online money transfer services which are supposed to provide even better exchange rates.
The good news is there are many banks and alternatives to find the best dollar exchange rate
In the United States there are +50 states. For each states there are dozens of banks. For each state there are dozens or currency brokers and online exchange rate providers. On top of this there are so many global solutions such as currency exchanges and multinational banks. This is a good news because you will find a way to do your money transfer. The good news is also the fact that because there are so many actors there is some competition. And competition drives the cost down. However you need to be careful because financial services tend to hide fees inside the dollar exchange rate. This is what we call hidden fees. Their amount can reach 10% that’s why depending on the amount you need to transfer it might be useful to continue reading my article.
The bad news is there are so many banks & alternatives that choosing among them to find the best dollar rate is a real challenge
Making a choice is easier when you benefit from a clear comparison. The problem is the fact that there are hidden fees applied by the different operators. You need to find a money transfer comparison operation in real-time so that at the moment you know “today is the best dollar exchange rate!” you will need to decide which bank or alternatives you are going to use. Using a money transfer comparison service is going to make you save up to 90% of the total fees you would pay. It’s efficient and useful for your savings.
After a few minutes of research you might get the knowledge about the 15-20 best banks and alternatives to send money abroad. These are the ones providing you with the best exchange rate for dollars. You also need to find the best time according to exchange rate evolution and getting exchange rate notifications is going to be necessary. When you find the best time you need to use a money transfer comparison service in order to be sure you use the best solution among so many banks and alternatives. It’s not easy. It’s a challenge. It’s worth it.
The context is often when it comes to moving internationally or living abroad. At this moment we need to find out how to exchange currencies either online or offline.
Now I feel good when someone asks about the best foreign exchange rates. The reason why I feel so smart is because a few months ago I was still a huge ignorant. I guess you might be interested in feeling smart and good starting from now. That’s why I’m writing this.
This is the story about how I discovered that everyone is saying bullshit about foreign exchange rates.
Every actor in the industry is saying bullshit about where to find the best foreign exchange rates…
The industry of money transfers, brokers and banks does not contain the most honest actors. Almost all actors are claiming to be free. Let’s take example:
- Travelex: “0% hidden fees”
- Banks: “free international money transfers”
- Western Union: “no commission”
- UAE exchange: “no fees on the first transfer”
- Moneygram: “no fix commission”
All of them! Do you really think they do the service for free? These companies don’t make money, according to you? Of course not. They charge you but they believe you are stupid…
At the end they hide fees inside the foreign exchange rates they apply.
I was.. and people are.. totally confused about them, but the best foreign exchange rates are easy to find! Yes!
When I meet people who are used to send money abroad, we usually start talking about exchange rates and fees since I know that Revolut, N26 and Transferwise claim to be free and finish by adding cost, later they double costs… and then they become as expensive as banks…
People always tell me “I have a very special contract with my bank and there is no fee. No no there is no fee for me. The others are paying but not me. Yes my bank love me because I’m so rich…hmm they believe I will become rich…I think…Well where are the fees you say? Inside the exchange rates? You mean they put fees inside the supposed best foreign exchange rate they provide to me? Ahh I might have missed this part…I’m going to take a look later… ;-(
I have to say nobody likes to feel like he has been screwed up…And nobody likes to admit… But what is the most important? Stop being screwed up or keep ignoring?
I made my choice and I decided to share it with you!
Let’s just hope that I helped you with my story and that starting from now you will have some additional knowledge about what is a good exchange rate and where to find the best foreign exchange rates. I have chosen my source when it comes to transferring money abroad or exchanging large amounts of money internationally: the best foreign exchange rates comparison service is Moneytis, according to me.
People living in the euro zone should always be alerted as to when the best euro exchange rates for them occurs. Especially if they have to move / spend money outside the Eurozone on a regular basis.
How meaningful the best euro exchange rate can be
When I was living in Switzerland a couple of years ago, I used to be paid in euros as I had a specific contract called a “V.I.E.”. Following Switzerland’s current events, I heard about the fact that the National Bank of Switzerland was thinking of stopping the indexation of 1 CHF = 1.20 €. This was in November 2014. Therefore, I decided to not take any risks and transfer all my euros in Swiss francs before the decision was taken by end of the year or January of the following year. I didn’t know at the time that I was currently benefitting from the best euro exchange rates I would never be seeing again before a while (if not ever…). The decision arose in January 2015, and it saved me around 20% of the amount transferred! This paid my 2 weeks holidays the same year.
Constantly looking for the best euro exchange rates works
Having been lucky in some ways on this one, I decided to make sure I always got the best euro exchange rates when moving outside the euro zone or transferring my money in Swiss Francs for my day to day expenses in Switzerland. After quite some research, I found a solution which not only enabled me to benefit from the best exchange rates but also systematically make sure I used the best solution to transfer my money. This solution is called Moneytis. It will enable you to systematically be alerted when the euro exchange rates move in your favor. (I think it also works for any other currency but not 200% sure you will have to check for yourself).
Feel free to check this out for yourself and hopefully it will enable you to finance your next holidays as it has done for me several times now!