Online currency exchange rates
Discussion
I'm pretty naive about this sort of thing,but there's something been confusing me for a few years I need explaining.
One thing I thought I was pretty sure about is that say the dollar, is worth a certain amount against say the UK pound and fluctuates daily,hourly or whatever.
But,what I'm not certain about is how each company I buy from seems to come back to me with a distinctly less favourable exchange rate when I purchase from them,than the one I just consulted online before I make the purchase,why??
PayPal,which won't be a surprise to anyone was the first company that made me think these guys are just plucking rates out of their behind,I mean say around a 100 quid or more difference over something £1200 in value?
I use XE online incidentally for currency rates.It's just annoying when you convert the price of something,you say hey,great price,go for it then whap!!Different amount comes up when paying.
When I question a company they just say oh we use so and so online for exchange rates,but why are they never as cheap as the prices 'I'm getting??Isn't the exchange rate at the same level all over the world at any given time of the day??Thanks.
One thing I thought I was pretty sure about is that say the dollar, is worth a certain amount against say the UK pound and fluctuates daily,hourly or whatever.
But,what I'm not certain about is how each company I buy from seems to come back to me with a distinctly less favourable exchange rate when I purchase from them,than the one I just consulted online before I make the purchase,why??
PayPal,which won't be a surprise to anyone was the first company that made me think these guys are just plucking rates out of their behind,I mean say around a 100 quid or more difference over something £1200 in value?
I use XE online incidentally for currency rates.It's just annoying when you convert the price of something,you say hey,great price,go for it then whap!!Different amount comes up when paying.
When I question a company they just say oh we use so and so online for exchange rates,but why are they never as cheap as the prices 'I'm getting??Isn't the exchange rate at the same level all over the world at any given time of the day??Thanks.
XEcalc give you a spot rate.
When people trade money (eg, your bank takes a USD amount), then they trade one side of that spot rate.....if you moved the money the other way, they trade the other side of the spot rate. & some have fees to bolt on.....
Gotta make their money somehow!!
I have used Transferwise for transfers from the US - appears to be more favourable, but remember it is a 'buyers market' in some ways, there are other options that can transfer things, probably some even better than Transferwise now!
You can see some transferwise comparisons up at https://transferwise.com/gb/compare
When people trade money (eg, your bank takes a USD amount), then they trade one side of that spot rate.....if you moved the money the other way, they trade the other side of the spot rate. & some have fees to bolt on.....
Gotta make their money somehow!!
I have used Transferwise for transfers from the US - appears to be more favourable, but remember it is a 'buyers market' in some ways, there are other options that can transfer things, probably some even better than Transferwise now!
You can see some transferwise comparisons up at https://transferwise.com/gb/compare
Mastercard have daily transaction rates: https://www.mastercard.co.uk/en-gb/consumers/get-s...
If the amount is large enough you should be aiming to pay 25 pips above spot on either USD or EUR.
That's what I get from those guys https://www.currencies.co.uk/contact/
That's what I get from those guys https://www.currencies.co.uk/contact/
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