Archive for the ‘Exchanges’ Category

Getting the Best Foreign Exchange Rates

Thursday, November 12th, 2015

Getting the best foreign exchange rates for hard currency transactions may seem a simple enough task to handle. You’d find out however that it can take a great deal of your time. Of course you can always go to your bank or to the nearest money changer near you but he question is €will you be getting the best foreign exchange rates€ every time? Remember a few cents difference can mean a big difference when making volume transactions.

You may have to shop around, ask around, and even surf around a lot before you can really get the best foreign exchange rate available. Don’t forget too that you always have the option to forego of the task if and when the current rates of exchange are too high (meaning if the rates are higher than when you bought the currency). If the rates are too high and you are not much in a hurry, then you can forego the task until better rates are available. This is where the exchange rate calculator comes handy because with it, you can check on the rates every now and then.

Here are some tips on how to get the best foreign exchange rates for hard currency transactions:

· Get the latest interbank rates from your bank or from any online bank.

· Using an online exchange rate calculator make a conversion and compare it with the inter-bank rates. There should not be much difference between the two but always choose the one with best foreign exchange rate for your reference rate.

· Using this as your base of reference, get quotations from various money changers. Do not however expect to get the same rate from money changers. The interbank rates and spot market rates are for wholesale transactions (usually in millions of dollars) while the money changer rates are retail transactions. Besides, money changers would normally pad up the rate with a small amount of profit to cover their operational costs so they will give you different quotations. Use the interbank rate for reference only but make sure the difference it has with the money changer’s quotation should be in the range of 5% To 10% only.

· It is not best to make hard currency transactions online unless it is with a banking institution. But if you will be doing an online transaction with money changers make sure you will be dealing with a reputable firm. You can always check its background online or even ask around from friends. Make sure also that the transfer process of the funds are secured.

· There is also a need for you to be aware of the current levels of the exchange rates compared to their rates in the past. Currency exchange rates fluctuate rather rapidly. What may be high today may be lower a day or two from now. So, unless you really need the cash, postpone the transaction to some other more opportune time in the future when exchange rate levels are in your favor.

Enormous Foreign Exchange Market

Wednesday, September 23rd, 2015

Foreign currency exchange market is the world biggest market and is also known by the name of spot currency market. Immense amount of transactions take place here on a regular basis. This article tells you about this enormous market and roles of the organizations involved in this market.

Foreign currency exchange market is the world largest market, this market is essentially different from other markets because of its extraordinary volume and due to its extreme liquidity. This market is typically an over counter or decentralized market. The traders choose this market for carrying the task of trade with several dealers which is just opposite to the stock market where all the traders belonging to a particular stock market pass through one point. This results into a high price competition. Banks are also major players in this market as they often opt for currency futures in very large sums. Although individual players in this market are rare, those with very large fortunes to their name can participate as well.

When do people need currency exchanges?
When traveling internationally, people need to convert the currency of their own country into the currency of the respective currency. Currency conversion is required when one wants to send money to abroad countries for education, immigration or for meeting up medical expenses.

The foreign exchange market includes six kinds of participants, these are, central banks, commercial and investment banks, global funds, retail clients i.e. the individual traders, and corporations. The commercial and investment banks carry on trading over the interbank market and make up the biggest segment of foreign exchange trading. They follow individual trading as well as trade for their customers and maintain the accounts by carrying their individual trading.

The major corporations, central banks, and hedge funds also trade on the system of interbank. The participants of the interbank system trade get the best rates when there are the largest investors along with their well-developed credit relationships in the foreign exchange market. Around three quarters of the regular volume of this market is exchanged in the system of interbank.

The function of the central banks on the foreign currency exchange market is just like the regulatory agencies i.e. the duty of maintaining the nation money supply. Certain direct powerful actions taken by them covers setting overnight rates, purchasing and selling government securities to adjust the money supply size, and purchasing or selling the nation individual currency in the open market to effect the rates of interest.

The main use of foreign exchange market for corporations are protection against currency reduction to safeguard future transactions and purchasing/selling currencies to pay international employees. A lot of volume in the exchange market can be generated by the global managed profit seeking funds through foreign financial investments. They constitute approximately twenty percent of the entire market volume.

There are several companies offering foreign exchange services for the people. With their simplified services you can travel to any place of this enormous earth without any tension regarding the availability of the currency. Choose a reputed financial company which promises you to provide hassle free currency exchanges at competitive rates.