Handling a currency transaction can be tricky and its important to be as well informed as possible so you don't get stung when you exchange money.
The Currency Club will help to guide you through the pitfalls.
The traditional methods are to go to the high street and visit a teller over the counter at either a bank, or bureau de change.
In most cases the teller will offer you a rate of exchange for one currency that you wish to sell vs the currency you want (which you are buying). There may be additional fees such as commission added on top.
Although the common advantage here is that you are exchanging money in person over a counter, it can be an extremely costly method when compared to doing a currency exchange online.
If it's a last resort then always check carefully the amount of currency you are selling against the amount of currency you are buying before proceeding. Compare this sum with the live interbank rate on your phone before making the exchange. You can read more about the interbank exchange rate (also known as the real exchange rate) here
The teller offers you an exchange rate of 1.17 and explains you have to pay commission of 2%. The total amount that you can expect to receive is £502.56.
As a comparison you then log into a currency converter online. You can use the one provided by The Currency Club which shows the interbank rate at 1.11120, therefore 600 divided by 1.11120 = £539.96 at the current interbank rate.
You can see by this calculation alone that the difference between the live interbank rate and the all-inclusive rate from the teller is over 7% and £37.40! That's money towards a nice meal! So the rate you are being offered is poor - walk away!
Go online. Most online providers do not have the large branch overheads of the high street and most times you can find yourself a good deal and save yourself money and the trip down the high street.
Buying online also means you can quickly compare exchange rates to help you make the best decision.
Be aware though that not all online currency providers are transparent with the fees they charge for money exchange, so check carefully.
You can either haggle and calculate your way through with the traditional money exchangers or save your time and use a transparent currency provider which will allow you to make a quick and sensible decision and not involve you having to get into troublesome calculations
The Currency Club is the only provider giving customers the real exchange rate (interbank rate) when exchanging money and charges a small fee on top. You can review the fee before confirming your order.
If you are looking to exchange money then visit our currency converter here. We also buy back currency and we can assist you with sending money abroad at the real exchange rate.
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