Currencies Rates

When traveling abroad or otherwise purchasing goods and services from a foreign country, you must exchange your own currency for your destination’s legal tender. Currencies rates, also known as exchange rates, let you know how much your domestic dollar is worth in another country. The ‘stronger’ your currency is compared to the one you are buying, the more units you will get. Conversely, if your country’s currency is weaker than that of the other country, it will cost you more to buy a specific amount of the foreign currency. Therefore it’s important to always reference the latest currency rates comparison prior spending money internationally. FX Compared makes it easy to find the best options when sending money abroad to countries across the globe.

Understanding Currencies Rates
With currencies traded on international foreign exchange markets, exchange rates fluctuate 24 hours per day. This means you could technically transfer money to another country one day and have to pay more or less money to complete the exact same currency transfer the next day, if the exchange rate increased or decreased. Currency rates vary according to a number of factors, such as a country’s debt levels, central bank interest rates and the overall strength of a country’s economy. Currency exchange comparison websites constantly provide updates on the latest exchange rates, to ensure consumers have the most up-to-date information needed to make sound financial decisions. When reviewing exchange rates, it’s important to know that currencies are most often compared to the US dollar, but foreign exchange comparison sites will allow you to change the pair Most major countries quote their currency four places after the decimal, with the exception of the Japanese yen, which is expressed two places after the decimal point.

Transferring Money Internationally
According to ConsumerReports.org, approximately 6 million American households send money abroad each year. As currency transfers continue to rise in popularity, consumers can avail themselves of an ever-increasing number of providers to complete the transaction. Companies offer many options, making it necessary for people to comparison shop to find the broker that best meets their needs, at the most affordable price. Some services offer a variety of ways to send and receive money, others only transfer money overseas, and many providers – and governments – have restrictions in place regarding the value of each transaction. Taking the time to complete a full currency comparison ─ reviewing a variety of different providers ─ is always a wise move.

Currencies rates can vary by provider, as companies may adjust the value to make money on a transfer. It’s important to lock in a guaranteed rate prior to completing the transaction, to ensure you know exactly what you’re paying. Additionally, make sure you have a solid understanding of the exchange rate between your country and that of the country you’re sending money to prior to initiating a transaction. Most brokers do not charge fees on larger amounts. Some providers may add on fees, particularly for smaller amounts. This will affect the overall exchange rate and result in a different amount of foreign currency received.