Currency Exchange

Australians have many avenues open that can be used to trade in foreign currency. Currency exchange needs vary widely throughout the country by individual or company – from a simple travellers’ cheque purchase to the exchange of large cash sums between two foreign currencies. Some individuals are only trying to send money to family in another country. Other individuals requiring currency exchange are conducting business with international corporations.

Whatever the needs for exchange may be, Australians have many choices available to take care of the trade. Many turn to the services provided by their bank or credit card provider. However, these are often the worst places to go when needing to exchange currency. Banks and credit card providers charge high fees and have above-market rates that sometimes have nothing to do with the prevailing interbank rate. The only reason people turn to traditional banks for currency exchange is because they don’t know where else to go. Only a specialised company dedicated to foreign exchange will provide the best rates and the lowest fees for all exchanges, whether they are small private exchanges or larger corporate exchanges.

Private Individual Currency Exchange

When a private individual is in need of sending money in amounts over $10,000 AU to other countries, it is best accomplished through a company whose only business is currency exchange. This type of company understands all of the facets of currency exchange, not only to and from Australian dollars, but to and from any international currency. Many instances of exchange require conversion of US Dollars to Euros, Euros to Great Britain Pounds, or even Japanese Yen to US Dollars. No matter the combination, only a dedicated currency exchange company can provide top-level service without having to compensate by charging high fees and offering unfair rates. In addition, the method these companies use for the exchange are much superior in both efficiency and security to the methods used by traditional banks.

A dedicated foreign exchange bank is prepared to offer a wide range of services not only to corporations but also to individuals. This specialized type of bank understands the needs of individuals requiring currency exchange. Many of their clients are emigrating from Australia and need to convert entire bank balances economically and efficiently. Some clients are buying a summer home abroad, remodelling an existing home abroad, or buying automobiles to be used when overseas. Traditional banks often have a high rate for individuals and charge a commission on top of that. With an exchange bank, fees for smaller transfers could be as low as $15.

Foreign exchange banks don’t have to charge high fees or offer unfair rates because they work internationally and have access to foreign currencies at the interbank rate. Only a small rate adjustment is made from which the exchange bank makes its profit. Because the exchange rate is only slightly bumped up before being passed on to the individual consumer, the individual is in a position to benefit from increased savings over traditional banks that set their own rates and charge outlandish fees.

Corporate Currency Exchange

No matter if a corporation or large company requires regular exchanges because they run a business reliant on imports and/or exports or is just in need of a one-time payment to an overseas customer or supplier, a dedicated foreign exchange bank will provide the fastest, most secure, and most economical service. A foreign exchange bank is equipped and has the knowledge to work with the most intensive foreign currency exchange needs including entire international investment platforms. The professionals working for these specialized foreign currency brokers are highly trained, knowing the ins and outs of the business in both small and large volumes of currency around the world.

Although foreign exchange banks handle all ranges of currency exchange, they provide better service than traditional banks because they have two different departments for individual and corporate needs. That means private individuals are assigned representatives specializing in smaller exchanges, and corporations are assigned experts in corporate currency exchange needs. The special requirements of a corporation should never be handled by someone who only has experience in exchanges for private parties. A corporate strategist at a specialized foreign exchange brokerage company will be able to discuss and give advice on advanced topics required by corporations such as forward contracts with options, hedging options, high tech options, and simple vanilla trades.

The rates offered to corporations by a foreign exchange specialist will be virtually impossible to beat. Many corporations have their own specialists and need only a broker to execute the trades at the best possible price. Corporations without their own specialists can also be comfortable in handing over control to the expert strategists at a foreign exchange bank. In addition, corporations talk only to their account specialist so they know the account inside and out, and there is never any extraneous or repetitive explanations necessary. At a traditional bank, corporations may have to go through the standard call centre and talk through several layers of untrained customer service representatives before they get someone who understands their needs.