Foreign Exchange Sydney
When travelling to Australia you’ll need to exchange your currency for Australian dollars. It’s much easier and less stressful to sort out your finances before you go than to have to deal with it when you get there. No-one wants the stress of battling with foreign exchange - Sydney has much more to offer than exchange providers!
Given the variability of the foreign exchange market it’s worth shopping around to get the best deal on your holiday dollars. There are big savings to be made between the best and the worst exchange providers, so it’s worth taking some time to get it right. Foreign exchange companies compete by altering two variables: the exchange rate (the rate at which they sell one currency for another), which is dictated by the foreign exchange markets but adjusted by individual companies to make a profit, and a commission for their service. The commission can be a percentage of the overall transaction or a fixed fee. Finding the best deal is a balance between a good exchange rate and a small commission.
There are many exchange companies online and you’ll often find the best deals there. Spend plenty of time searching and comparing different foreign exchange provider’s websites, but remember, a volatile market can change exchange rates in a matter of minutes so make sure you’re always comparing like for like. Many online providers allow you to buy from the website and arrange to have your currency delivered securely to your home or to pick it up from their premises.
Although popular, buying your currency last minute at the airport doesn’t offer good value for money, so try to avoid it. Airport exchange bureaux have a captive market so can offer poor exchange rates and charge a high commission – making themselves a good profit but not giving you much in return. Likewise, high street banks and building societies also tend to offer poor rates, although they can sometimes have special offers so might be worth checking with.
If you don’t have time to look online, look for specialist high street foreign currency exchangers. Rates offered by these firms are usually better than the banks as it’s a highly competitive market, but be wary of their ‘commission-free’ services. These are frequently advertised but often mask very poor exchange rates, meaning they still make a profit but you get less equivalent holiday cash. If you’re likely to return home with some unspent dollars investigate the ‘buy-back’ rate of different services – some 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, look into using a specialist foreign currency exchange broker. 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 an overseas bank account. These brokers deal in huge volumes of currency, so they can offer customers excellent exchange rates and still return a profit on the smaller margin, and competition between firms ensures that fees are kept low to win over customers..
