Foreign Currency – What’s the Cost

Foreign currency and the multitude of exchange rates that fluctuate daily can be confusing. As well as some consumer ignorance about foreign exchange rates and the best places to exchange sterling, reports have found evidence of currency rip-offs. Some holidaymakers and business travellers are losing out heavily at exchange currencies. In 2000 the European Commission uncovered banks and bureaux de changes were putting on heavy and illegal charges for buying and exchanging foreign currency.

Charges on Foreign Currency

It was thought that the British public alone could be paying in excess of £200m in charges on foreign currency. It can be expensive buying foreign currency because of exchange rates – which are beyond the buyer's control. But unfavourable rates and excessive charges also increase the expense. Traveller's need to get clued up about where to get the best value for foreign currency. It's thought that double charging is one of the major problems that accounts for 25% of money transfers – when you transfer your money from your account at home, you could end up paying once when the money is sent and again when you receive it abroad.

Hidden Fees on Foreign Currency

Additionally, some bureaux de changes in the UK can also charge hidden fees on foreign currency. Even if they offer it at ‘no commission' when it comes to exchanging your foreign currency back to pounds, the bureaux could offer a poorer exchange rate. It's always advised when you're out to buy foreign currency that you:

• 
  
  Shop around. There are foreign currency exchange companies not only in the High Street and in banks – but online too.
  
  


• 
  
  Just as you would abroad, it's worth trying to haggle on your foreign currency – try and negotiate any commission down if you're buying a lot of foreign currency.
  
  


• 
  
  Try only to buy what you need – if you come home with foreign currency you want to exchange back you could end up losing out on the exchange rates;
  
  


• 
  
  But remember drawing cash from a cash machine abroad also costs – usually around £1.50 per transaction.
  
  

Always remember there is a cost to buying foreign currency and exchanging foreign currency. So make sure, just as you would buying any commodity, that you don't get ripped off, find the best deal and ensure you get the most value for your money.

Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money with us by getting better currency exchange rates than with your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0)20 7989 0000or email info@fcexchange.co.uk