In today’s world we are lucky to have the World Wide Web at our fingertips and there is a vast amount of information available to us, just a few clicks away. It’s perfect for comparing sites for information and any good deals. You can also use this exceptional tool for comparing foreign exchange rates for the best currency exchange available.
It’s also known as Forex, FX or currency market, is a worldwide over the counter (OTC) market for trading currencies. It determines the foreign exchange rates for every currency. It includes buying, selling and exchanging currencies at current or set prices.
The exchange rate means how much a country’s currency is worth in a different currency. Example, how much GBP is worth in USD, Euro or AED?
The most frequently asked questions are:
Go online and check any of the exchange rate web pages, simply type in which currency you want to convert from, example 100 GBP into 100 USD or 100 Euro and the exchange rate will be given. You can check the rate offered between cash or transfer.
For bank foreign exchange trading:
The buying rate– commonly called the purchase price, is the price used by the foreign exchange bank to buy foreign currency from the customer.
The selling rate– commonly called the foreign exchange selling price, it refers to the exchange rate used by the bank to sell foreign exchange to customers.
The middle rate– is the average of the bid price and the ask price.
Setting the exchange rate:
The basic rate– is a currency that is the most commonly used in international economic transactions.
The cross rate– after the basic exchange rate is worked out, the exchange rate of the local currency against other foreign currencies is calculated through the basic exchange rate.
According to foreign exchange controls:
The official rate– is the rate of exchange announced by a country’s foreign exchange administration.
The market rate– refers to the real exchange rate for trading foreign exchange in the free market. It fluctuates with changes depending on supply and demand.
The Kuwaiti Dinar is the strongest currency and has the highest currency value. The Kuwaiti Dinar has been the highest currency of the world for quite some time now, due to the oil rich country’s economic stability.
Start with your own bank first and then search on line for the best foreign exchange company that suits your needs. There are also travel companies that offer this service too, you can ask at any one of the travel companies in your area.
The best foreign exchange London, are scattered across the capital and you can view their exchange rates daily online. If you prefer, call in to one of the many branches. If you are going on holiday to Europe for example, where euro is the currency, look daily on the web for the best euro exchange rate and buy when the rate is good.
Is it best to exchange money at home or abroad? If possible, exchange your money before your trip. Once your abroad you can use ATM’s.
Once you return home you can contact whoever you bought your currency from and see if they will buy back any foreign currency you have left, most do. This is a question you can ask before using their services and may help you decide which provider to use.
There are several cheap ways to exchange currency: Go to you bank or currency provider. Consider getting traveller’s checks, order currency online, buy your currency at a foreign bank branch or simply go to the ATM.
Foreign exchange comparison sites give you the best idea of what services they offer. You could be going on holiday abroad and would need to use local currency. If you are buying travel money you need to check the total cost (payable fees) not just the exchange rate.
Maybe you are investing in overseas property and you need to purchase your currency. Large international money transfers to be sent abroad are best via international money transfer centers. Transfer centres all provide this type of service. But do your homework first, look at the internet and ask for recommendations.
There will be charges but remember, the companies are in competition and you will often find excellent fx rates being offered, all you need to do is look for them and compare fx rates. Look for sites with recommendations or ask someone who travels often, which company they use or recommend.
Look at the overall charges, what is the commission rate they are asking for, are there handling costs, delivery charges or fees if you pay by credit card? Usually if you are charged a fee it will be a percentage of your total amount transferred.
What you need to search for are no commission fees, no handling costs, no fees incurred for paying by credit card and free delivery of your currency. In all honesty, you most likely won’t have a completely free service but if you can find a good deal – snap it up! Most people look for low fees when comparing foreign exchange sites. Check the rates daily, they do fluctuate and be ready to act on any deals, especially if you are making large currency transfers.
In a word no, although it could be considered the easiest and most convenient method, this is where you will pay premium fees and be worse off by seven to fifteen percent, compared to the standard bank rate. International travellers may not have done their homework beforehand and as a last minute option used the airport for convenience.
This is a great way of understanding how much your money will be worth after the conversation rate. For example if you have X amount of Great British Pounds (GBP) and you are exchanging to United Stated Dollars (USD) it will tell you the foreign exchange rate and how much you will receive in USD.
It will also tell if you if there is a minimum transfer amount, how long the transfer will take (maybe an hour or could be several days) and if there is an online fee.
Usually it is cheaper to buy your foreign currency online; they offer the best deals, often with no transaction fees, no limit on transfers and the transfer can be done in minutes. You have choices with a range of currencies available anything from Euro to United Arab Emirates Dirham (AED) and many more. Bank transfers normally have a weaker exchange rate and charge higher fees, plus the processing time is from two working days, not immediately.
If you know that you will be travelling soon and you will need to exchange foreign currency, start your search a few months in advance. Take note of the daily rate changes, it will guide you when best to buy.
Compare our fx rates by clicking on the links at the top of the page.
