How do you exchange currency for live exchange rates?
Posted by: admin / Category: Buy CurrencyToday I went to a currency exchange agency Travelex and I wanted to sell my Canadian dollars for American. I saw online that the live exchange rate was .903, meaning 1 Canadian = .903 American. So, I had 690 Canadian in my pocket and only got back 569. They told me there was no fee charged because it was over $500. They told me since they were buying my Canadian dollars, the rate was different. That didn’t make any sense to me. I guess these places make up their own rates.
So where can I go to exchange currency for it’s current REAL rate?
0.903 is "wholesale" price from forex market, where people trade standardized batches of fixed size (e.g. a million US$), and do it through a specialized computer system which has high subscription fees. In addition, trading on that exchange probably requires putting up substantial deposit.
Since you are only trading $500, and do not have access to the system, you have to pay "retail" price which is obviously less favorable.
June 30th, 2010 at 5:08 am
0.903 is "wholesale" price from forex market, where people trade standardized batches of fixed size (e.g. a million US$), and do it through a specialized computer system which has high subscription fees. In addition, trading on that exchange probably requires putting up substantial deposit.
Since you are only trading $500, and do not have access to the system, you have to pay "retail" price which is obviously less favorable.
References :
June 30th, 2010 at 5:56 am
Only very large banks and you have to have millions of dollars on account with them like George Soros (a notorious foreign exchange currency speculator). The exchange you went to used their own rate which included a fee (or difference in value) that they withheld in the rate.
References :
Been there done that