Currency Exchange and Foreign Exchange - the Big Players
The currency market is the world's biggest liquid market, and is open to investors around the globe. Open 24 hours a day, it has a vast daily turnover and is constantly changing to reflect what is happening in the world.
So why might a person be interested in Currency and Foreign Exchange? This might carry many answers - for example, he or she might be looking at the foreign property market and need to make transactions to that country. Or they might own a business with staff based abroad and need to pay them.
So how will they go about moving currency from their own to another? Well, there are a few options available. First, they could go to their local bank. They already hold an account there so why not use them now? What they will find however, is that the regular bank will charge a high exchange rate, and be a lengthy process.
So, they might look around for a better deal. Most will come across a Foreign Exchange specialist bank, which does exactly that: specialise in foreign exchange. These banks are not affected by the bank to bank exchange rate, and can therefore pass on the best rates direct to the customer. They are also experts in the field, and will not have large call centres. Instead, each customer account has its own account manager, who is available all day, 5 days a week.
In the end, using a specialist broker is cheaper overall than using a high street bank. This is no secret but is useful to know when looking to make foreign transactions. There are many foreign exchange specialists on the market, so it is a good idea to shop around to find one that suits your needs.
Currency For Business
Uncompetitive exchange rates in the currency markets pose a very real threat to multi-national businesses. Not only do you need to consider the exchange rate you are being offered by your bank for transfers, but also you need to consider where the rates may go between now and the next time you need to make a payment. For example, exchange rates can go up to 10% in the space of just a few weeks, and all this means your payment could cost 10% more or less depending on which way they move. However, there are ways of managing this exposure and specialist brokerages.
Travel Money and Travel Money Cards - Shopping Abroad Made Easy
It is already important to most of us to save as much as possible and to find a good deal on a holiday or trip. Finding the best flight deal can become tricky at times, and then comes the task to get a good hotel.
That is why getting a decent deal on money becomes even more important. The way to get the best deal is to start online. Most money advisors would suggest this as the best way to get the most out of your money, but why?
The main reason is that most bureaux de change and high street dealers are unable to offer as good an exchange rate as the online providers. This is found to be the case in the majority of dealers - and losing out in the exchange is not worth getting caught by. Especially when your currency is weaker than the one you plan to change into, it is a shame to use a chunk out of that money just from changing it.
Most online providers will also offer home delivery of your currency, in some cases even next day delivery. Therefore, there really is no excuse for forgetting currency until you get to the airport.
Travel Money Cards for the New Way To Buy Abroad
Travel Money Cards, or FX Cards, are the latest and most practical way to make purchases abroad. But hang on a moment - why not just use your existing credit card? The answer is simple: the exchange rate. On a regular credit card this can be sky high and each time you take money out or make a purchase you fall foul of this. On top of that there may be high purchase fees and ATM withdrawal fees.
A travel money card is provided by a credit card company (such as MasterCard) which means it is accepted widely, but is simply a prepaid card onto which you load your foreign currency. The exchange rate will be highly competitive, and the extra fees for overseas use are usually good too.
Any leftover currency can either be left on the card for the next trip or can be subject to free buyback - most card companies offer this.
The options for foreign currency are so many, it is certainly worth checking out what's on offer online. Most people will find what they are looking for!