Banks typically say that they will do a fee free currency transaction for you. But do you really think that the bank is doing this for free?
The truth is there is a rate that the bank buy a currency at and a lower rate that they sell it back to you.
Using October 2016 as an example, for a transaction of £100,000 into Euros one leading high street bank would have paid you €112,481. One of our currency partners would have paid you €113,792 a gain in your favour of €1,354 or a difference of 1.34% on the same transaction. The simple fact is that the currency exchange company gave you a better deal than the bank for doing exactly the same transaction. The larger the transaction the more you will potentially save (any currency to any currency is the same story).
For an individual exchanging £500,000 using these same figures the difference on the day between the bank and the exchange company would have been around €6,500 and now really starts to look significant bearing in mind this profit is going directly in the bank’s pocket and not yours!
Of course this was just one day and one transaction. Results can vary, but one thing is for sure, the bank is not your only option for currency exchange. We can help you get a second quote easily through our partner connections and if you don’t look at your alternatives you could be spending much more than you needed too losing out on the best deal.
Find our more below about how VINGT’s currency exchange partner can help you get the best deal
Contact Moneycorp if you would like to advice about locking in your foreign exchange rates to avoid future negative market fluctuations.
VINGT Paris recommends using Moneycorp for bank-beating exchange rates, currency market expertise and no hidden bank charges. Click through to our foreign exchange enquiry form if you have any questions or to enquire about ‘Vingt Paris’ preferential rates.
Moneycorp is the longest established currency exchange specialist in the UK with over 35 years of experience. Worldwide offices in London, France, Spain, US and many more.