Henry Willis of London's Swift Fox explains how to go about comparing currency exchange rates when traveling or conducting international business.

1. HOW TO COMPARE
CURRENCY
EXCHANGE RATES
Henry Willis
H E N R Y W I L L I S S W I F T F O X . C O M

2. we do business with people from different
countries, and visit and experience different
cultures on holiday. With that in mind, however,
with different countries often comes different
forms of currency. Dollars, pounds, euros, yen, are
just a few examples that come to mind.
When purchasing goods and services, then, how
do you find the appropriate amount in each? By
comparing exchange rates. Of course, you could
just go to the bank and ask them to take care of
the whole process for you, without taking the
time to shop around. That’s a mistake, though,
and could cost you more than a penny.
OUR COMMUNITY IS A GLOBAL ONE

3. or conducting international business, it’s
best to take the time to find the best deal,
and here’s how:
In short, know what a broker’s mark-up is.
WHEN TRAVELING ABROAD

4. YOU CAN FIND OUT THE
BROKER’S MARK-UP
by asking two things. First, how
far is my price from the mid-
market? Second, is the rate
fixed?
The answer will come as a
percentage, such as “our rates
are 0.5% from the mid-market,”
meaning that the brokers fees
are 0.5% of the transaction
value. In other words, converting
£100,000 into euros it will cost
you £500 in fees, but this will be
factored into the overall cost.
With £100,000, that amounts to
125,690 euros, as explained in
this case study.

5. IF YOU’RE DOING
THE MATH
CORRECTLY
at 1.2569. The mid-market
exchange rate is 1.2632.
THIS PUTS YOUR
EXCHANGE RATE
do not necessarily tell you how
far the rate is from the mid-
market, however, because they
are likely overcharging you.
BROKERS, INCLUDING
BANKS,
shouldn’t function as a hidden
cost. Of course, the broker has to
make a living of their own, and
thus add a fee for their services.
That makes sense. But
depending on where the
broker’s exchange rate falls from
the true exchange rate (also
referred to as the “benchmark,”
“headline rate,” or “spot rate”)
you could potentially find a
better deal with a different firm.
THE EXCHANGE RATE

6. WITHOUT DUE DILIGENCE
of comparing the rates yourself, you stand to
lose pennies on the dollar, which can add up
significantly with large amounts of money.
Knowing if the rate is fixed or not prevents a
broker from changing the rate after the initial
deal. Exchange rates fluctuate constantly, so the
rate the broker quotes you at the beginning
might not be the same as what the rate is at the
time you open your account.

7. KNOWING THE ANSWER TO THOSE TWO
QUESTIONS ABOVE, THOUGH, WILL HELP
ENSURE THAT YOU RECEIVE THE BEST DEAL
POSSIBLE WHEN CONVERTING CURRENCY.

8. THANKS FOR
VIEWING!
WWW.HENRYWILLISSIWFTFOX.COM