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The best exchange rate for your currency exchange transactions depends on a number of factors but the two main factors will probably be:

1. The amount that you are transferring: If you are transferring a small amount (less than £1000) you will get a worse exchange rate compared with exchanging a large amount of money (for example, buying a property abroad). This is because online money transfer providers will offer you better exchange rates for greater amounts of currency being transferred. Nevertheless you should still shop around when exchanging a small amount of currency because, for example, you will get a better exchange rate online if you buy currency before your travel compared with using a Currency Exchange at the airport!

2. The timing of the currency exchange money transfer: Exchange rates are changing all the time (every minute, hour, day, etc.) so to get the Best Exchange Rate you may need to wait for the exchange rate to change in your favour. Some people buy holiday money before they book their holiday. For example if you know you are planning to travel to Europe buy euros when you believe they are cheap. If you wait until the day that you travel you will have no choice but to accept the exchange rate on that day. There are numerous things you can do which are follow the news (political and economic events), research experts views on the likely direction of the exchange rate and more. If you are transferring a large amount of currency you may decide to use a Forward Contract as this allows you to lock in today's exchange rate for a transaction at a future date (this may be useful if you are buying a property overseas in the future and do not want to take the risk of not being able to afford a particular property due to exchange rate fluctuations).

Best Exchange Rate

You will find that the Currency Exchange offers you different buy and sell exchange rates. This is how the Currency Exchange company makes a profit and the difference in buy and sell rate is called the spread. The best exchange rates are provided by companies with a low spread. For example, the company Transferwise provides competitive rates by focusing on making buy and sell rates the same if not very close to one another. XE also offer competitive rates because they deal with very large numbers of customers and a high volume of currency which means that they can pass their cost savings on to you as their customer. Both XE and Transferwise do not have shops that you can visit and for this reason they do not have expensive premises to maintain and pay rent on. Again this cost saving is passed on to the customer in terms of getting the best exchange rate for you.

XE Exchange Rates

Buy and sell currency with XE and get the best exchange rate. Opening an account is free and there is no obligation to trade currency which means there is no pressure to exchange money and you can manage the timing of the currency transaction(s). Exchange rates will be good for low amounts of currency but the best exchange rates will be offered when transferring large amounts of money. XE is regulated by the FCA in the UK meaning XE has to follow rules and regulations regarding holding, processsing and exchanging your money. Click here to sign up with XE.