When I started to send money from the USA to France I had no idea that it was important to get the best exchange rate so that I could maximize the amount that I would received. Let me give you some context about exchange rates and then I’ll give you my secret tip 😉
What does “best exchange rate” mean?
If you are familiar with the notion of exchange rate you probably know that they fluctuate a lot. Indeed a currency value cannot be defined by itself. You always define it compared to another one. For example the exchange rate USD/EUR is 1/0,95, which means that for $1 you will get 0,95€.
Exchange rates are extremely volatile as they depend on the demand on the foreign currency market. If suddenly everybody wants to buy USD its value will increase, law of supply and demand.
Therefore, the notion of best exchange rate is not absolute and changes constantly. The idea when talking about money transfer is to make sure you get the best one you can in a given period. Obviously you could wait for year to get the best exchange rate, but your transfer cannot wait that long right?
Make sure you get the best exchange rate
As you’ve probably understood, depending on the exchange rate the amount you’ll receive for your transfer will vary. It will also vary according to the operators you’ll be using. Let’s assume you received an alert telling you that the exchange rate is in your favour today. You need to make a transfer, how do you find the operator with the best exchange rate?
First of all, forget about your bank. One of their technique to make money out of international money transfer is to apply a poorer exchange rate than the real one and keep the difference. Clever isn’t it?
High-street operators such as Western Union or Moneygram are not competitive at all regarding exchange rate. Last option, go for online operator such as World Remit but they are so many of them today that making a wise choice is not that easy.
To me, the only way to make sure you get the best exchange rate is to compare money transfer operators. Moneytis enables that, with three clicks you get a list of all operators and their conditions.