Australian Currency Exchange

For the best foreign currency exchange rate, you should look at how much money you need and how much time you have to spare for a little forward-planning. There are two important factors to check to make sure you get the best deal on your dollars: the currency exchange rates offered and fees that are applied for the service.

Leaving time to shop around will get you that best deals on holiday cash. If you leave it to the last minute, you will be stung by the airport currency exchanger – these bureaus typically offer poor foreign currency exchange rates and add commission fees, leaving you with less holiday cash for your dollars. The same usually applies to high street banks and building societies.

As this isn’t really where their business is focussed they tend to offer uncompetitive currency exchange rates. Sometimes your bank may have a special offer for existing customers, so can be worth checking out, but generally speaking, only use these services if you leave it late and don’t have another option.

Look for specialist high street foreign currency exchangers that are in competition with similar businesses, and are seeking to attract customers with the best deals. Rates offered by these firms are usually better than the banks, but beware ‘commission-free’ services that can appear to be a better deal than they actually are.

What can appear to be an instant saving, sometimes hides a very poor currency exchange rate, leaving you with less money for your dollars than a service that levies a one-off commission charge, but combines this with a better Australian currency exchange rate.

With all foreign exchange currency services, it is typical that the more you exchange, the better a rate you’ll get, with lower fees. When comparing services shop around and look for companies that will guarantee to beat their competitors on the deal.

Because the currency exchange rate you get depends on rate and fees, the question you need to be asking yourself is “what amount of the currency I need will I get, after all charges, for this set amount of dollars?”.

Also have a think about the ‘buy-back’ rate if you think you’re likely to return home with unspent cash – some services will buy-back without commission giving you a better deal.

If you’re going abroad for a while or need to transfer a large amount of money for any reason, consider using a specialist foreign currency exchange broker. With the different banking systems used internationally, currency cannot be transferred directly and must be converted. Opening a bank account in other countries from Australia can be quite straightforward, so electronic wire transfers are convenient.

When assessing the best transfer deal, it comes down to the combination of exchange rate and fees, and how much currency you get from different providers for your dollars. Bank-to-bank transfers are usually a poor value choice, often charging relatively high ‘receiving fees’ for the transaction, and an uncompetitive exchange rate.

Specialist foreign exchange brokerage firms generally provide a superior value service compared to banks, and exchange currency before electronically transferring it to your overseas bank account.

These brokers deal in such high volumes of currency, they can offer customers a lower-priced exchange rate and still return a profit on the resultant smaller margin; competition between these firms for business ensures that fees are kept low to win customers.

Many international currency exchange brokers offer exchange rates and fees on a sliding scale – the more dollars you convert, the better value the deal. For lower value transactions, there are other online services and specialist agents that offer the best deals.

To choose between currency transfer providers, look primarily at the rate and fees, but also consider additional services such as the availability of online tracking of transfers, in order to choose the best provider.

Our thanks to World First for the above contribution. See their website for an in-depth coverage of all aspects of Australian and international currency exchange planning and trading.