If you are used to send money abroad you are probably familiar with the notion of exchange rate and, like me, you might be obsessed with always getting the best exchange rates for each of your transfer. Here are some tips to make sure you always get the best exchange rates for your transfers.
What “best exchange rates” mean?
If you need to transfer money frequently you probably know that the notion of “best exchange rates” does not make much sense in itself. Indeed, exchange rates fluctuate all the time depending on the demand on the foreign currency market or because of extraordinary events such as Trump election or the Brexit referendum. Thus, these fluctuations indicates that there are moments when the exchange rates are better than others and that it is important to make sure you know about them. The notion of “best” is quite dependant on a notion of time. Indeed, when we talk about best exchange rates, we need to define a period of time. Is the best since 30 days, since 2 years etc.
The important thing to keep in mind here is that when sending money abroad, you need to monitor the exchange rate to make sure that you do not get the worst.
3 tips to get the best exchange rates
First of all, make sure you get alerted whenever the exchange rate fluctuate significantly. Some people like spending time watching graphs displaying exchange rates variations. I personally hate graphs and do not have time for that. Therefore I recently subscribed to exchange rate notifications to make sure I am aware of any change. This is a good way to optimize your transfers: waiting for the best exchange rates.
Then, make sure you compare the money transfer providers before making your transfer. As exchange rate is one of the main aspect in a foreign money transfer, some actors, such as banks, are applying a markup on it. Using a comparison platform will help you see exactly which exchange rate will be apply on your transfer, provided that you’ll do it instantly (remember exchange rates fluctuate).
Finally, make sure you do not get lured by shiny, doubtful advertisements that offer you the best exchange rates for you transfers. This might seem obvious but it is more and more common to see operators offering you “free transfers at the best rates”, but unfortunately such things do not exist! Make sure you read all conditions before doing anything.