Exchange rate: the key to get the best deal in currency exchange

Currency Exchange

2019-08-01

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Before we talk about how important a good exchange rate is in currency exchange, the first thing we need to know is what called an exchange rate and what will influence it.

Exchange rate is the value of one currency compared to another. For example, how many U.S. dollars does it take to buy one euro? It sounds very simple, but in reality, feels a little more complex because exchange rates between currencies change all the time. That means your dollars may buy more euros or pounds one day, but fewer the next.

There are lots of factors influence on the exchange rate. What most known by us are terms of trade, strong economic performance, and differentials in inflation.

Many of you may not be interesting on what influence the exchange rate. how to get the best exchange matters more.

Here are simple tips to ensure you exchange currencies at the best exchange rate:

1. Pay more attention to the mid-market rate.

the mid-market rate, which is also sometimes called the interbank rate. This is important because it’s the only real exchange rate, and the one banks use when they trade currencies on global financial markets. Compare the real, mid-market rate with the exchange rate you’ve been offered by your bank or exchange service, to see if it is fair.

If you have demand in exchange currency among USD, HKD, EUR, GBP and JPY, Epay.com is a platform that you can exchange your money. Because it adopts the real-time mid-market rate.

2. Exchange currencies with a foreign exchange broker instead of your bank.

For banks always has a weaker rate than foreign exchange broker. Bank expects you to use them, so they offer inferior exchange rates. By comparison, when you use a currency broker, you’ll receive a significantly better exchange rate guaranteed.

3. Lock in the exchange rate protects you against foreign exchange volatility.

Locking in your exchange rate with a forward contract is ideal if you’re worried that the exchange rate may be volatile in the future. It is suitable for those people who have a large currency exchange demand in the next few months or years.

For example, let’s say that you intend to emigrate to Spain next year or travel to another country 2 months later. Locking in your currency exchange rate also lets you know exactly how much foreign currency you’ll receive, ahead of time.

4. Accept a good exchange rate when it becomes available, don’t wait to see how high it goes.

This is because the foreign exchange market is highly volatile, meaning it’s very unlikely you’ll buy at the “top”, even if you watch the exchange rates closely. Instead, to ensure you get the foreign currency total you need when you transfer your money, accept a good rate as soon as it arises.

For foreign workers, cross-border companies and cross-border investors, getting clued up about exchange rates can help you find the best rate out there for your foreign currency exchange.

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