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11 min read 10.07.2021 242

Top 7 Best Exchange Rates

For a long time, customers accepted traditional banks' lack of technology. However, with the development of mobile banks,  traditional banks are trying to stay up and provide clients with the innovation they desire. The question is whether it will be mobile banking vs traditional banks. Or will they be able to work together to create the financial services that modern customers require?

Ibrahim Busari
Ibrahim Busari
Ibrahim is a fintech writer at AskWallet

Fact checked! This material is written by an expert

11 min read 10.07.2021 242

What is an exchange rate?

The value of one currency in relation to another is referred to as an exchange rate. It seems easy, but it's actually a little more complicated because currency exchange rates fluctuate all the time. Because of variations in the currency rate, your dollars may purchase more euros or pounds one day and less the next.

What's the distinction between an exchange rate, a mid-market rate, and a money rate?

You'll hear a number of various terminologies used when learning about international currency conversion. For example, the mid-market rate, money rate, spot rate, forex rate, buy/sell rate, and tourist rate are all examples of these.

All of these phrases refer to an exchange rate or the number of dollars required to purchase another currency. The mid-market rate, commonly known as the interbank rate, is the one you should be most concerned about. This is significant because it is the only true exchange rate, and it is the one that banks use when trading currencies on international financial markets.

The mid-market cost fluctuates constantly, based on a variety of factors. The value of a country's currency may grow if it is perceived to be economically successful and politically stable, for example. This is because investors are comfortable keeping their money in this currency and are willing to acquire more of it. As demand for this money grows, so does its value.

On the other hand, the opposite can also be true. As a result, if a country's economic or political situation is in turmoil, investors may get concerned. They sell more of their currency holdings, boosting supply. The value decreases because there is more supply than demand.

Although it is often fairly easy to spot the factors at play when exchange rates rise or fall, it can be very hard to predict them in advance. That’s why it’s crucial to keep up with what the exchange rate is doing, to make sure you’re getting a fair deal on your currency exchange.

Where to get the best exchange rates?

This is an easy question to answer for our experts at AskWallet, however for a regular person this question might prove difficult. There are so many options to choose from and you might not get the chance to compare all the options you have. Our team of experts has done that for you and came up with a list of EMIs with the best exchange rates. So, read along as we introduce you to the list. 

Torfx

Torfx is one of the leaders in the money transfer sphere with an office in the UK that is consumer based. Users can use torfx service via their mobile devices as well as on the fintech companies website. 

The finest aspect of this service is that there are no fees associated with it. Its fees are cheaper than those of its competitors. TorFX, on the other hand, offers a minimum transfer sum of $200 USD but no maximum transfer amount.

TorFX provides good customer service by creating a fully digital experience that you can quickly reach out to anytime of the day. With multiple offices in all time zones, you can quickly contact anyone 24/7 with any concerns you have with your money transfers.

TorFX delivers excellent customer service by offering a totally digital experience that can be accessed at any time of day. With various offices in all time zones, you may immediately contact anybody with any questions or concerns about your money transfers, 24 hours a day, seven days a week.

Exchange Rate 

TorFX profits from exchange rate margins . TorFX, unlike many banks and other institutions, does not impose any additional fees on top of the exchange rate. The overall cost of transfer, i.e. exchange rate + fixed fees, is 0.5 percent -2 percent for TorFX, 3 percent -7 percent for banks, and 6 percent -8 percent for PayPal.

Pros 
  • There is no maximum transfer restriction.
  • There are no transfer fees.
  • Multi-currency account.
  • Personal account manager.
  • Supports 60+ currencies.
Cons 
  • Users cannot send money to an e-wallet or cash withdrawal service; only bank-to-bank transfers are supported.


WorldRemit

WoldRemit is a cross-border money transfer company that specializes in international payments, among other things. Customers may use e-money services to send money to over 150 countries while also tracking the transfer from your account to the destination. Transfers are available for cash pickups, e-wallets, bank accounts, and more!

However, if you're looking for a service to handle large amounts of money, WorldRemit might not be the best option. Other options are available in our list of money transfer services.

Exchange Rate 

The mid-market rate and a margin are both included in WorldRemit exchange rates. The margin charged varies per currency, however several currencies may have the same margin.

The currency rate also varies based on the mode of payment. When compared to bank transfers, cash pickups have a lower rate. The rate offered by WorldRemit at the moment of transfer is assured and fixed, with no fluctuations along the way.

Pros 
  • Has a foothold in several countries, including Europe, America, and others.
  • Various payment methods are available depending on where you live.
  • Transactions are completed quickly and securely.
  • There are several withdrawal alternatives.

Cons
  • It may not be the most affordable solution for moving big sums of money.
  • Transfers are restricted in several regions.


MercuryFX 

Individuals and businesses may rely on this renowned worldwide currency specialist. They  provide a safe and cost-effective alternative to banks, allowing for speedier and less expensive transactions. Mercury FX transfers your money at better rates than banks and sends it anywhere in the world.

Exchange rate

Mercury FX trades in the interbank foreign currency markets in the same way as investment banks and hedge funds do, which allows us to pass considerable savings on to our clients in the form of better-than-bank exchange rates. If you or your organization has a currency requirement or makes overseas payments, MercuryFX can assist you in making the process simpler, faster, and less expensive.

Pros 
  • Mid-market exchange rates 
  • International money transfer 
  • Merchant and Personal accounts 
  • Low cost transaction

Cons

  • Not available in some countries 
  • EMIs with the best exchange rates for usd 

WorldFirst 

WorldFirst is a London-based worldwide money transfer and payments company that offers personal and corporate clients the ability to trade in over 180 currencies. Its price is clear, with exchange rates tiering based on transaction amount. With over 27 currencies, WorldFirst is 85 percent less expensive than banks.

Exchange Rate 


Exchange rates are updated in real time and are priced around 2% more than the mid-market rate. The price is broken down into three straightforward and transparent ranges of 0.50 percent, 0.25 percent, and 0.15 percent. This price structure allows comparing WorldFirst to other suppliers easily.  However, keep in mind that there is a 6 euro conversion fee when changing EUROS to USD and a 5 GDP fee when converting british pounds to USD. 

Pros 
  • Transfer Fees Are As Low As Possible
  • Currency Security
  • Sending Options That Are Flexible
  • Customer Service
  • Services tailored to your needs

Cons
  • Transfer Payout Options Are Limited
  • Not available in the United States


IFX Payments

IFX Payments is a global provider of foreign exchange, payment, and financial technologies. IFX Payments has payment options that save you time and money, whether it's a single transfer or your worldwide payroll run. Mass payments, API connection, multi-currency accounts, virtual iBans, active and passive hedging, limit and stop-loss orders are among the primary services offered.

Exchange rate 

Looking for a place to exchange currency at mid market rates has never been easier. With IFX payments users can exchange their currencies in real time with live market prices. On IFX’s website you can check the live foriegn exchange rates. At the time of this article, on IFX payments the asking price for EUR to USD is 1.1893 and a bidding price of 1.1894.

Pros
  • Virtual IBANs
  • Mid-market foreing exchange rates
  • Mass international payments
  • Transparent market report available
Cons
  • Not available in some countries
  • EMIs with the best exchange rates for EUR

 

Global Reach Group

Global Reach (formerly known as FC Exchange) offers worldwide money transfer services to individuals and corporations from nearly every country. Every customer has access to a dedicated account manager. Global Reach can help you handle your currency requirements more effectively, whether you are a business or an individual.

Exchange rate

On existing mid-market/interbank exchange rates, Global Reach imposes markups/margins. The margin might vary substantially depending on your trade volume, transfer frequency, and the currencies involved. Also, users can easily get a quote in currency exchange rate right from the financial service providers website. 

Pros
  • Competitive mid-market exchange rates 
  • Personal and Business account 
  • International money transfers 

Cons

  • Slow registration process


Foreign Currency Direct

Foreign Currency Direct is a fintech company  registered in England providing individuals and businesses a quick and cost effective way to exchange currencies online. Foreign Currency Direct Plc offers multi-currency e-wallets, international transfers, currency exchange, currency contracts, and regular payments to individuals, companies.

Exchange rate

The currency market may be very volatile, with significant fluctuations for a currency pair occurring on a daily basis. When moving money abroad, this action might either cost or save you thousands of dollars. So, regularly checking live exchange rates provided by Foreign Currency Direct  can help you make an informed decision as to when to send money abroad.As with the rest of the bunch, all quotes are individual, and more money transferred equals better exchange rates. It’s really difficult to say whether the rates they are offering are better or worse than the ones you’ll get somewhere else.

Pros 
  • Competitive mind-market exchange rates 
  • International money transfers to over 120 countries 
  • Multi-currency e-wallet 
  • Business payment and fx solutions
Cons
  • Not suitable for small transfers.

What is a floating exchange rate?

The private market determines a floating exchange rate based on supply and demand. A floating rate is sometimes referred to as "self-correcting" since any discrepancies in supply and demand are immediately adjusted in the market. The majority of nations in the world utilize a variable exchange rate. When a country utilizes a floating exchange rate, the government can only influence the rate, not regulate it.

What is a fixed exchange rate?

A currency with a constant exchange rate is one that is not affected by FOREX. Instead, the government controls and regulates the rate. Countries with fixed exchange rates, such as Hong Kong, Denmark, or Saudi Arabia, generally tie the exchange rate to a widely accepted foreign currency (US Dollar or Euro).

The government of the country then has a large supply of each of these currencies. This enables them to purchase and sell currency as needed to maintain a stable exchange rate.


What is an interbank rate(mid-market rate)?

When banks trade currencies among themselves, the interbank rate, often known as the mid-market rate, is utilized. This rate is generally higher than the rate offered to customers. This is due to the fact that currency conversion businesses are profit-driven and frequently add fees or a mark-up to their exchange rate.

What factors influence the exchange rate?

Here is a brief explanation of some of the critical factors that help to determine the exchange rate.

Demand and supply

When there is lots of currency and low or average demand, the exchange rate is generally low. When there is less cash in circulation and there is a great demand for it, the exchange rate rises.

Consumer confidence

Consumer spending and investment tend to be greater when a country's populace is confident in the stability of its economy (low unemployment or inflation). This increases the currency's appeal to investors, resulting in a higher exchange rate.

Trade balance

The balance of commerce of a country compares the value of exports to the value of imports. If the balance is not equal, the exchange rate will be affected.

When exports exceed imports, the country sends more of its money overseas. The greater the supply of money, the lower the demand for it and the exchange rate.

Inflation

Inflation is the rate at which the prices of goods and services in an economy rise over time. When a country's inflation rate is continuously low, its currency is typically more valued, resulting in a higher exchange rate.

Rates of interest

The price that banks charge people to borrow money is known as interest. You will be charged extra if the interest rate is greater.


What rate will I get when using a foreign exchange provider?

Before you use a foreign exchange service, it is critical that you understand the exchange rate that will be used for your transaction. This is due to the fact that many banks and currency exchange businesses do not provide the true exchange rate for retail clients moving smaller sums of money. Instead, they charge a premium over the true mid-market pricing and pocket the difference as profit.

A markup on the exchange rate is essentially simply another charge. However, unlike upfront costs, a markup is not visible, and it frequently means that you pay more for your currency exchange than you need to. If a bank or foreign exchange business advertises zero commission or fee-free foreign exchange, this is a red flag to double-check the exchange rate. The expense of the transaction is most likely disguised in a low exchange rate.

Another issue that complicates matters is that many exchange providers utilize various rates for different currency goods. So, for example, ordering your currency online for home delivery may result in a better exchange rate than just strolling into an exchange office for an on-the-spot currency conversion. It's also typical to see different conversion rates when filling travel money cards than changing cash.

To avoid being ripped off with a poor exchange rate, make sure you are clear on the rate being used by your bank or exchange service, before you pay.

How to get the best exchange rate

Banks and foreign exchange providers frequently utilize exchange rates that might be perplexing. However, if you know where to look, you can find the best available conversion rate.

To begin, you must understand the mid-market rate for your currency pair. This is easily obtained through a Google search or by visiting a trustworthy website such as AskWallet, which gives a list of EMI with mid-market rates. You may also use an online currency converter or sign up for alerts to receive notifications when exchange rates change.


Compare the real, mid-market rate to the exchange rate given by your bank or exchange provider to see whether it is fair.

Often, comparing the total amount of money you'll receive after any fees and expenses have been removed is the simplest method to locate the greatest offer available. So, if you want to convert $1,000 to euros, ask many different suppliers how much you'll get in euros at the conclusion of the transaction. This method allows you to identify whether hidden fees or a poor exchange rate will result in you having less money in your pocket than you should.

Exchange rates may be perplexing since they fluctuate with the markets - and exchange businesses and banks provide a variety of different rates based on their business strategy. Don't fall for a company that claims to offer free currency conversion; in many situations, this just means that their profit is concealed in a bad exchange rate. That is not transparent since you cannot immediately see how much you are paying for your foreign money - and it is frequently more expensive as well.

Learning about exchange rates may help you get the best rate for your foreign currency exchange, giving you more money to spend when you travel.


How important is an exchange rate?

When converting significant sums of money, a minor difference in the exchange rate might result in hundreds of dollars lost or gained. Exchange rates are determined by how much individuals are prepared to pay to purchase and sell foreign currencies. When looking for the best conversion rates, you'll often hear the phrase "mid-market" rate tossed about – pay attention to this.


Who can benefit from the best exchange rates 

This is a pretty much straightforward question anyone can benefit from getting the best exchange rates. However, not everyone deals with foreign currency on a daily basis. So, what group of people could really benefit from the best exchange rates? Those are  travellers, businesses of all kinds looking to accept payments from abroad, traders and others! 

For travelers, finding the best exchange rate is one of the biggest struggles when in a different country. High exchange rates and scammers looking to make a quick buck from tourists are everywhere and don't even think about exchanging currency at the airport. The exchange rates at airports are ridiculously high.  So, choosing one of the EMIs with the best exchange rates we have mentioned below will be a cheaper, faster and more comfortable way to spend and get cash on your trip abroad. 

The same goes for businesses as well as expats looking to send money to family or relatives back at home. 

Ibrahim Busari
As a fintech writer at AskWallet, he uses his metaphorical pen to guide you through the world of EMIs. He has been working in the financial and iGaming industry since 2016.