For those of us living and working in Palma, a truly international community, the future and the value of the Euro is of growing concern, particularly for people who need to move money between different currencies.
Sometimes we need to transfer money from our home accounts to Spain. It may be a small sum to pay a bill. It could be a regular transfer, such as a monthly pension. Or, we may need to send a large amount to buy a house or car.
In most cases, we assume our bank will handle the transaction keeping our best interest in mind. Yet, more often than not, our bank has exchanged currencies with a high margin, pocketing the difference as profit…and charging you a fee.
There is another way to move money and, more importantly, save money. A qualified and authorised independent currency exchange provider can assist you with this. Currency brokers are specialists in this field. They watch the markets closely, offer better rates than the banks and can provide personal money transfer strategies based on our own unique circumstances. As well, they have a number of tools to help reduce the risks of adverse movements in currency exchange rates, thereby making our money go that much further.
For instance, let’s say you want to transfer £2000 sterling from your UK bank into euros, either directly via your bank or courtesy of an ATM. The current exchange rate the bank will give you is €1.097 (based on rates at this writing 11 Jan 2017). Add on a transfer fee of up to £25, and the amount you will receive in euros is €2,167.
Make the same transaction on the same day using an independent currency broker, and you’re likely to get a far favourable rate, such as €1.15 to the Pound. With no fees payable by you, the amount you will receive is €2,300. There is a difference of €133.
Now, imagine that this is a monthly occurrence. Over a year, you could save €1,596.
Sounds great, but are brokers as secure and trustworthy as banks? You have every right to be concerned. The answer is: choose a broker wisely. Most established brokers are UK-headquartered. This is important because it means they are regulated by the Financial Conduct Authority, and their client accounts are segregated and secure. Therefore, your money is safeguarded under UK law.
Related articles to currency exchange.
This article was written on the 13th of January, 2017.