If you travel abroad regularly whether for holidays
or business or because you have a second property overseas – you’re probably
wasting money. That’s because most people still make the fundamental mistake
when sending
money abroad of using the traditional method of a High Street bank or
the Post Office. This is a ridiculous state of affairs once
you look a little deeper into the whole Forex (foreign exchange business).
Photo: telegraph.co.uk
The fact is that the closer you can get to the spread when it comes to exchanging money between different currencies – the cheaper this will be for you. And, for the uninitiated, the spread refers to the difference between the buy and sell prices between currencies.
All international currency exchange companies make their money in the difference between what they’re able to deal at – and the price you pay. This may sound like something of a “licence to print money” and it kind of is! But make no mistake; this is a fiercely competitive business – which is great news for us the consumer – and it’s become ever more competitive, which is even further good news.
Most of the real competition is happening
online these days. The lower international currency exchangers can keep their overheads,
the tighter their spreads are likely to be. And what’s more; it’s never been easier
to get different quotes quickly online – from anywhere you have a computer with
web access anywhere in the world, 24 hours a day. The best companies will even
alert you if and when an exchange rate moves in your favour.
So today’s foreign exchange rates should be better than ever for all of us
even for small amounts – yet it’s surprising just how many people haven’t work
up to this fact yet. Don’t let this be you. There’s no need to trade currencies
in the old-fashioned way anymore.
