Apart from if you work in a large corporation trading currencies on a daily basis, or if you are the manager of a company that works in many different countries & needs to invoice internally or optimize account balances, you might think that best exchange rates are useless, right ? Well this is what I thought until not too long ago
The power of best exchange rates for people living in France and working in Switzerland.
Did you hear about what happened in Switzerland in January 2015 ? If not, let me tell you first that people working in Switzerland and living in France (or at another border like Italy, Germany..) were pleased to benefit from the best exchange rates of their lives !
The national Swiss bank stopped artificially keeping the euro / swiss franc balance around 1€ = 1,20 CHF…. and suddenly, the swiss franc bounced like crazy until it exceeded 1 CHF = 1 € ! In simple words this means that all people working in Switzerland and living in France got a 20% salary increase without asking for anything 🙂
Funny thing to do when the best exchange rates appear like magic
A friend of mine who was concerned by this lucky & unexpected 20% salary increase had bought a coat in Paris 2 days before the new rate of 1 CHF = 1 € occurred. He felt disappointed as could have saved 100 € if he had bought it at the good moment when the best exchange rates arose. So what did he do ? He simply returned the coat in the shop, went for a coffee in the opposite store and then came back to buy the exact same coat ! This saved him 100 € !
If ever you wish to spot these precious moments when they occur, keep an eye on the best exchange rates. Hopefully, you will manage to make the most out of it as well some day 🙂
When I recently moved to the USA I needed to transfer money to France and therefore needed to find the best exchange rate for usd to maximize the amount of money I would receive. Here is how I went through this.
Why trying to get the best exchange rate for usd?
When sending money abroad you need to exchange foreign currencies (except if you send money inside the eurozone of course). As you might know exchange are extremely volatile and fluctuate a lot. This is generally due to external factors such as elections (see what happened to the USD after Trump’s election) but also economic turmoil or states’ intervention. Therefore it is important to make sure that you get the best exchange rate for usd when you need to make a transfer. Depending on when you send your money and how much you send, you can earn several hundreds of dollars.
Getting the best exchange rate for usd does not mean much absolute terms because you could be basically waiting for your entire life to get the best exchange rate. The idea is to be able to get it once you know you need to transfer money. It’s obviously better if you are not in a hurry for sending money, otherwise you’ll have to cope with the current exchange rate which might not be good.
How to get the best exchange rate for usd?
Basically the best way to get the best exchange rate for usd, if you have time to transfer your money is to wait for it to be good. Let’s assume that today is a good day to make a transfer.
First thing you should know is to avoid your bank for such operation. The generally apply very poor exchange rates compared to the real one and make money out of the difference with the real one. Of course they do not mention it at any moment but all banks do that.
If you’re not using your bank, you’ll have a great variety of choice with operators such as Western Union, Transferwise, Azimo etc. There are so many of them that you’ll be needing a platform that compares them for you, otherwise you’ll be wasting too much time. Such platform already exists. With only 3 clicks you get access to all the operators between two countries and for a given amount.
What is an exchange rate? An exchange rate is the rate at which a currency converts to another. If you need to buy or sell euros, receive or send euros, then this guide is for you.
The best exchange rates is something millions of people need. More than 250 million people are currently living abroad and the trend is increasing. Building a guide for the best exchange rates worldwide would be difficult but my guide is going to apply to all exchange rates anyway. Here I will specialize on Euros. My guide is about how to get the best euros exchange rates. You will realize I built 2 parts. The first one is about how to always be informed about exchange rates so that when the best one arrives you are notified. The second one is about what to do once you think you reached a very good rate.
How to get notified when the market reaches the best euros exchange rates?
1- Go to a comparison website and subscribe to exchange rates alerts. You will receive the list of exchange rates applied by money transfer operators.
2- Go to an exchange rate notification service and subscribe to smart exchange rate notifications. You will receive 2-3 emails or Facebook messages a month only at the best moments. Only when the exchange rates are significantly better than usually.
What to do if you think the exchange rate is very good?
1- Verify. Talk to others. Try to understand for which reason this change happened and get to know whether it will continue.
2- Transfer your money. Exchange your currencies. It’s a comparator which transparently compares all money transmitters in real-time. You will beat bank rates. You will have the right time to send money and the best exchange rates thanks to both the best operator and the best timing.
Next time you need to exchange currencies. Remember that there are 2 simple steps to get the best exchange rates. The first one is to make sure you receive notifications at the good time. The second one is to do what is appropriate.