Tips to getting the best exchange rates
Getting the best exchange rates is important for businesses that need to exchange currencies for various reasons, including paying suppliers, collecting export payments and transferring money between overseas subsidiaries.
Here are some tips to help you get the best exchange rates:
Shop around: It is important to compare exchange rates offered by different financial institutions such as banks, currency brokers, and online platforms. Don't settle for the first rate you see, even a small difference in exchange rate can have a significant impact on the amount of money you receive or spend, and those rates may not remain favorable.
Timing is key: Exchange rates are constantly fluctuating, so it is important to keep an eye on market trends and exchange rates over time. You may find that waiting a few days or even hours can result in a better exchange rate. Choosing a provider that offers exchange rate notifications and transparency over the interbank ‘real’ exchange rate is an excellent way to approach getting the best exchange rates.
Negotiate: Some providers may be willing to negotiate exchange rates, especially if you are exchanging a large amount of currency on a regular basis. Don't be afraid to ask for a better rate, more often than not you can agree on a fixed currency markup, ensuring you don’t get worse rates over time.
Avoid unnecessary fees: Some financial institutions, like brokers, may charge additional fees for exchanging currencies. Look for providers that offer low or no fees, and make sure you understand any fees that are associated with the exchange (i.e. the currency markup). Don’t be fooled by phrases like ‘no commissions’ as these providers will likely be charging hidden fees elsewhere.
In conclusion, getting the best exchange rates requires some effort and research, but it can ultimately save you money. By shopping around, timing your exchange correctly, negotiating, and avoiding unnecessary fees, you can ensure that you get the most favourable exchange rate possible.
Integritas offers a complete online payment solution with fixed 0.15% markups, no payment fees, full transparency over the interbank exchange rate, instant rate alerts, faster international payments and the option to buy forwards online. We offer an unrivalled level of pricing, transparency and ease of use for businesses trading overseas.