This informative guide will share what you need to know about comparing exchange rates. You will learn how bank and money transfer companies profit from currency conversion and how to get the best FX rates. This guide will save you money and help you find a specialist transfer provider that matches the mid-market rate.
In the context of money transfers, currency exchange is when the sender initiates a transfer with one currency, and the recipient receives the funds in another currency. Banks usually profit from this service by not offering the best currency conversion rates.
Therefore, you should compare exchange rates between different services to find the best deal. You need to compare the specific currency you want to convert. That is because a service might provide a good deal when converting EUR to USD but a poor deal for GBP to USD conversions.
This guide will help you understand what you need to know when comparing currencies so that you can spot the best deal. In addition, it will save you money and time when sending money internationally.
Money transfer companies that offer the mid-market rate for currency conversions provide the best possible rate. It is defined as the midpoint at which banks trade currencies with each other. This rate fluctuates, but it is the best rate available.
The mid-market rate changes because of global economic factors. The demand and supply of currencies have a knock-on effect on currency-pair conversion rates. Overall, banks only change the rate once per day.
Comparing exchange rates may feel daunting, but it is simple and a handy way to save money. This section outlines the common tips you should follow to simplify the process of comparing exchange rates:
We understand that you may be confused about what money transfer service offers excellent FX rates. Therefore, we have created a list of the top 3 companies that you can try today for industry-leading exchange rates:
Wise consistently matches the mid-market rate for hundreds of currency pairs. For example, at the time of writing, 1 USD would get you 0.88 EUR, 0.74 GBP, and 1.27 CAD. In addition, the service provides graphs to check the trading history of currency pairs and clearly displays information on the rate you will get during a transfer.
Also, they charge completive fees and offer a range of payment options. Wise does a great job of allowing you to compare the fees and transfer time of each transfer option. The information is clearly displayed at each step of the transaction.
Instarem is another money transfer service that matches the mid-market rate. The FX rates for popular currency pairs at the time of writing are 1 USD to 0.88 EUR, 1.28 CAD, and 0.74 GBP. In addition, they have an FX rate calculator on the homepage, which allows you to compare exchange rates quickly.
Also, Instarem offers a global network of over 150 countries and charges competitive fees (0.25-1%). You can also contact the support team 24/7, and there is an InstaPoints reward program that allows you to earn points for transferring money.
VertoFX is a solid currency exchange solution for business clients. They have an in-house FX app that allows clients to get the best rates for money transfers. The combination of real-time insights and investments in their local currency is helpful.
VertoFX also provides mass international payments for businesses and a dedicated account manager that provides support. Getting the best FX rates for your business could be the difference between a profitable month and one that is in the red.
Overall, comparing exchange rates is important to save money while sending money internationally. You can consistently get good FX rates for hundreds of currency pairs by following the tips above. Also, consider checking out the three money transfer companies mentioned above to get a great deal.
We recommend that you continue researching exchange rates by checking out our guides on the mid-market rate and multi-currency accounts. It will help you manage your finances in different currencies while enjoying the best FX rates.
April is a trained journalist and the Content Editor for MoneyTransfers.com. She has 10 years experience writing about a diverse range of subjects, from financial services to arts and entertainment. When she’s not writing about global remittances she can be found daydreaming about her next holiday abroad.