FOREIGN EXCHANGE INFORMATION

Please see information on Foreign Exchange below.

        

This section covers buying and transferring large amounts of foreign currency (of around $15,000 and above).

What is a Foreign Exchange service?

A foreign exchange service or specialist is a brokerage firm which specializes in providing foreign currency services to individuals and corporations. As they are specialists in the field, they can offer the best exchange rates.

Can't I use my regular Bank for Foreign Exchange?

Sure you can. Most regular banks offer foreign exchange services. However, banks have a number of fees attached to a foreign exchange transfer and the exchange rate that they offer is generally much less attractive than the one offered by a foreign exchange specialist service. Why?

Banks offer a poorer exchange rate to their customers because they have much larger overheads than brokers. They will also add extra charges and commission to the transfer, making it much more expensive overall. Specialist currency brokers have a large enough turnover of currency to be able to buy at similar levels to big banks, but don't charge additional fees or commission.

So, in very simple terms a currency exchange specialist gives you a much more cost-effective method of exchanging currencies no matter if you're making a one-off transfer, emigrating, buying overseas property or for business purposes.

What does Interbank rate mean?

The interbank rate is the rate of interest charged on short-term loans made between large banks. They borrow and lend money on the interbank market the interest rate depends on the availability of money in the market. Many global regions or countries have their rate in Australia it is the AFMA (Australian Financial Markets Association) BBSW (Bank-Bill Reference Rate). The AFMA is used as the benchmark interest rate for financial instruments. The BBSW is Australia's equivalent to the LIBOR in the United Kingdom.

The interbank rate is the best rate on the market but isn't available to regular customers yet the closer to this rate that your exchange rate is, the better.

When is the best time to use a Foreign Exchange Specialist?

Whenever you need to exchange or transfer an amount of around $10,000 and over into another currency, you are best advised to use a foreign exchange specialist. Most of them have a minimum transfer amount (like $10,000) under which they might charge you around $10. However, this could still work out cheaper than using a normal bank. On the other hand, there are other good companies who can offer a cheap solution for smaller transfers such as Money Transfer services. See our section on them for more details.

Corporate Foreign Exchange

Coroporate foreign exchange specialists offer their service to individual customers but also to corporate clients. This service will be especially worthwhile if you buy products overseas or have staff based in another country. As individual customers, you will get the best exchange rates and be able to buy without commission fees.

        


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