The simplest guide to exchanging currencies

The Simplest Guide to Exchanging currencies Currency exchanging can seem complicated and intimidating.

Substandard conversion rates and hidden fees enable brokers to extort money from the inexperienced. Modern digital currency exchanges come to the rescue. Banks have been the sole money exchange and sending facility available for the longest time, but their long wait times and high charges and converting fees have made them unpopular. Online currency exchanges are convenient to use. Send money to Australia or any other country from the comfort of your home.

Apart from online exchanges, there are other traditional modes of currency exchange and international money transfer. Let us discuss how these exchanges work and their pros and cons.

Banks and other traditional financial institutions.

Banks and other traditional financial institutions are the oldest forms of official and regulated international currency exchange and a secure way to transfer funds from one country to another. These institutions operate on the SWIFT network (The Society for Worldwide Interbank Financial Telecommunication). Once favoured for their security, high wire transfer charges accrued by banks make it an unpopular choice now.

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Currency exchange kiosks.

Currency exchange kiosks are easily found at airports and other touristy spots. You may be attracted to the ease of transaction and the convenience they provide, but don’t be tempted. The exchange rates offered by these kiosks are one of the worst out there. For example, suppose you are converting USD to CAD, you may get 75 USD for exchanging 100 CAD at the bank, but receive only about 70 USD when using airport kiosks. That is a loss of 5 USD you could have spent on a nice cup of coffee.

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Unregulated offline exchanges.

Unregulated offline exchanges are present throughout third-world nations. These locations often deal in counterfeit bills and the exchange rates are relatively low. Most of these exchanges are also linked with criminal activities such as illegal trafficking and money laundering so it is best to steer clear of these locations.

Now that we have seen what alternatives we have and what challenges they pose, it is time to discuss the best way to exchange currency bills and internationally transfer money. In the present times, online transactions have become regular. Whether it is for groceries or filling up your car, digital transactions make the process hassle-free and seamless. Online money exchanges also work similarly. A simple google search will provide you with the best online platforms, then you need to sign up with an account. A reputable exchange will show you estimates in advance and not have any hidden charges. You can convert USD to CAD, send money to the UK, or send money to Australia or any other country from the comfort of your couch.

www.interchangefinancial.com