Before performing any kind of currency exchange, it’s important to understand every step in the process thoroughly, along with associated fees. This ensures that you retain the maximum possible value for your currency, rather than lose out on hidden costs. It’s commonly assumed by many that their bank is the most practical solution for transfer, without fully understanding the hidden fees and inflated exchange rates offered.
In general, the charges related to international money transfer fall into two categories: exchange rate, or transaction fees. Exchange rates are often obscured by large banks, as some opt not to provide the information at all. The rate given is frequently one loaded with a commission. On the other hand, transaction costs involve things like overseas receiving or transfer fees.
The exchange rate actually offered by a bank may wind up being dependent on things like the volatility of the currencies you are dealing with, the amount being transferred, and the time-frame of your exchange.
Depending on your need, which may range from substantial purchases overseas to small transactions like sending money to family members, it’s often wise to investigate other options such as peer-to-peer exchange. These methods very frequently offer exchange rates that are less bloated with commissions, and are more transparent about the fees associated with transferring money internationally. In the future, we’ll have a look at how peer-to-peer exchange works, and what benefits it offers over more traditional methods of currency exchange.