How to save money on currency exchanges
Aisa International France is run by an international team with plenty of experience in currency exchanges. Here are some general rules which may help you save significant sums of money on your currency exchanges:
Rule 1: always shop around
It may sound obvious but many people accept the rates offered by their bank when these rates are not often the best rates available. It pays to do your research or contact an experienced and trustworthy broker (Aisa International can facilitate currency transfers at very good rates!).
Rule 2: understand the difference between commission, fees and rates
Sometimes people are mislead by sales people saying that their currency exchanges and transfers are commission or fee free. Many brokers claim that their exchanges and transfers are fee or commission free, whilst offering you a worse than market rate and pocketing the difference. The way the currency broker is paid should always be transparent, currency brokers are not working for free!
Rule 3: understand the difference between an exchange rate fee and an international transfer fee
Some banks may offer free international bank transfers, but only if you are making an international transfer to an account in the same currency. Other banks could offer you a fee-free currency conversion, but then charge you on the international transfer part, you should check both currency and international transfer fees. There is another article about this subject here.
Rule 4: consider opening a multi-currency account with a multi-currency card
When I go to a country outside of the Eurozone, I usually use a multi-currency card so that I can make card payments abroad without paying excessive fees for doing so. This is usually safer than carrying large amounts of cash with you and often cheaper than usually your normal bank or credit card. Aisa International France can introduce you to a multi-currency account provider.
Rule 5: consider risk management solutions such as forward contracts and limit orders
Aisa International can introduce you to a provider of forward contracts and limit orders. A forward contract allows you to fix the price today for a future transfer whereas a limit order allows you to set a target exchange rate and the transfer will be conducted immediately if your target exchange rate is met.
Feel free to contact us to discuss your currency exchange requirements further.
The views expressed in this article are not to be construed as personal advice. Therefore, you should contact a qualified, and ideally, regulated adviser in order to obtain up-to-date personal advice with regard to your own personal circumstances. Consequently, if you do not, then you are acting under your own authority and deemed “execution only”. Additionally, the author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Importantly, this article is dated and is based on legislation as of the date. It should be noted that legislation changes, but articles are rarely updated. Sometimes a new article is written; so, please check for later articles. Additionally, check for changes in legislation on official government websites. Finally, this article should not be relied on in isolation.
