If you’re still using your bank to make money transfers or to buy travel money, chances are you’re paying excessive fees and receiving inferior exchange rates. A little bit of research and comparing travel money exchange rates before you go on holiday, could help you increase how much cash you have available to spend overseas.
When buying travel money, providers rates can vary according to the stock of different amounts of each currency on hand or available. Some places tend to sell a lot more USD or maybe a lot of places buy a lot more USD so they will me more inclined to weight their buy and sell price accordingly. This can be changing all the time, generally the best deals are found by ordering your foreign cash online so make sure to check our Travel Money – Best Rate Calculator to find the best Online Deals.
The same goes for when you make overseas transfers via your bank’s online banking service. This is often the most convenient option as you have an existing relationship in place. However, banks know this so the exchange rates and fees they charge are very expensive – often 5% to 6% more than you can get by using an Online Payment Provider. So it is important next time you are looking to send money abroad that you Compare the Exchange Rates of your bank to our recommended BER partners in our Best Rate Calculators.
If you are making overseas payments or receiving funds from overseas in foreign currency amounts the same concepts can apply. Some banks or foreign exchange traders will have a stronger client base of people who import (they tend to need to make payments overseas in USD) others will have more exporters (they tend to need to convert incoming payment from USD into AUD). This means that on a daily basis they tend to have stronger flows in one currency versus another. This often results in them shifting (or skewing is the technical term) their prices to offset their other business. You can take advantage of these skews in the foreign exchange rates by comparing and seeking out the best exchange rates.
Posted to: General