Whether you are exchanging money to buy a property abroad, for a holiday or to send funds to a family member in another country you want to secure the best deal. Doing so will save you a lot of money. Plus, of course, using a good currency exchange firm will save you a lot of time and hassle as well as give you peace of mind.
Over the years, the currency exchange markets have changed. It used to be a service that was designed primarily to suit big businesses that were exchanging vast sums of money on an almost daily basis. Today, private individuals and small businesses also regularly exchange money. Therefore, thedemand for money transfer is now huge, so more companies are now providing this service.
The fact that more firms have entered the market means that the cost of changing money has fallen drastically over the past few years. Consumers no longer have to pay high bank charges, because they now have a choice of currency exchange providers.
However, to get the best deal you still need to be prepared to do some research, and shop around. Here we explain the best way to do so.
Only consider using properly regulated providers
It is important to use a firm that you can trust. Unfortunately, there are a lot of con artists out there, including some that masquerade as money exchange firms.
Before considering using a firm, first check that they are properly regulated. Look on their website to find out which financial body they are registered with. Then go to that regulators website and check that the currency exchange firm you are thinking of using is actually a genuine member of that regulatory body.
If you want to use a UK based company, you will need to check that they are registered with the Financial Conduct Authority (FCA). You can do that at this link.
Always get a quote first
Once you have found a suitable firm take the time to get a quote. This will tell you exactly how much the transaction will cost.
Double check the fees
However, be careful. Do not simply choose the cheapest quote and make the exchange.
Some firms offer a good exchange rate, but it is cancelled out by the fact that they charge high fees for their services. For this reason, it is important to double check exactly what is included in the price you have been given.
The best firms will provide a detailed quote that includes a full breakdown of their fees, taxes, and the exchange rate that will be used. If the money is being sent to a bank account, you also need to factor in any fees that the receiving bank will charge.
The bigger the sum of money you are exchanging the more important it is for you to check all of these things. With this type of transaction, even a small difference in the exchange rate can add up to hundreds, or even thousands, of pounds.
Following the steps outlined above, will really help you to secure the best possible currency exchange deal.