Find the best currency exchange rates

 

 

Exchange rates significantly affect how much you’ll pay to send money abroad. To get the best possible price, comparing exchange rates is key – but doing this yourself can take a long time. Luckily, FXcompared has done the hard work for you. 

In just a few seconds, you can compare exchange rates and fees for the most reliable money transfer providers worldwide, showing you the best possible option for your specific transfer. The result? Up to 90% savings on fees and charges versus using your bank.

In this guide, you’ll find everything you need to know about exchange rates and sending money abroad, including currency pairs, top money transfer providers and a full explanation of how exchange rates affect your money transfer.

Firstly, here are our guides to exchange rates for some of the most popular currency pairs. Click on the links to find out more about the rates, as well as crucial information about property, moving abroad and trading internationally.  

Best US Dollar Exchange Rates

Best British Pounds Exchange Rates

Best Euro Exchange Rates

Oceania Exchange Rates

Contents

How do exchange rates work?

Put simply, currency exchange rates refer to the value that one nation’s currency has when described in terms of another nation's currency. 

The quotation of one different currency against another is known as a currency pair, with some of the most popular pairs including the pound, the euro, the British pound, the US dollar and the Japanese yen. 

The standard, baseline exchange rate for currency pairs is known as the mid-market rate. This is the rate that banks use to exchange money between each other. 

However, as we’ll soon find out, money transfer providers will often add an additional markup fee on top of this rate when you use them to send money abroad. 

How does the exchange rate affect your international money transfer? 

As we explain in our money transfer guide, the cost of sending money abroad depends on two factors:

The exchange rate: the value that one nation’s currency has when described in terms of another nation’s currency, plus the markup added by the money transfer company.

Transaction fees: the amount that some money transfer companies will charge to help you send money abroad.

Money transfer providers that have low/no fees will usually have a markup on the mid-market exchange rate. On the other hand, money transfer providers that do charge a fee will often have better exchange rates. 

This is why you need to consider both exchange rate and fees together when you are evaluating money transfer providers to ensure you are getting the best possible price for your transfer.

How to find the cheapest exchange rates

In order to find the best exchange rates, it’s worth doing the following:

Avoid the high street banks: Banks will almost never have the best exchange rates. It’s better to send money using a money transfer specialist with lower fees and competitive exchange rates on international money transfers. 

Compare providers: With FXcompared, it takes one click to compare exchange rates and fees being offered by money transfer providers so that you can pick the best option for your transfer. 

Bear the mid-market rate in mind: Many money transfer providers add a markup on the exchange rate, based on the amount being transferred, but aren’t always transparent about how much this markup is. It’s a good idea to load up the mid-market rate when comparing providers so you can see the difference between the markups being added. 

Planning ahead: Sending money abroad on the day/instantly could cost you more in the long run if the exchange rate moves in your favour. If you don’t need to send money straight away and can hold off for a better exchange rate, that could lead to significant savings. 

FXcompared has a number of tools to help you monitor exchange rates between currencies, including our currency converter. Using these tools, you can assess the current mid-market rate and also see whether your currency has been trending upwards or downwards in value over time.  

Use forward contracts: Some money transfer providers also provide forward contracts and limit orders. Although slightly different, both of these options allow you to send money at a later date but with a more desirable exchange rate, meaning you spend less on your transfer. 

 

How do exchange rates affect businesses?

Businesses may need to send money abroad for all kinds of reasons, such as paying foreign suppliers, partners and freelancers that work abroad, setting up new branches or investing in other businesses overseas.

If your company is regularly sending large amounts of money overseas, the exchange rate becomes even more important. If currency values fluctuate and the exchange rate suddenly becomes unfavourable, your business could take a financial hit when you send your next regular payment.

Thankfully, a number of currency hedging solutions can help businesses offset the risk posed by fluctuating exchange rates. We talk more about this in our guide to international payments for businesses here.

Compare currency exchange rates today 

The cost to send money internationally is affected by the exchange rate offered by a broker, but it is important to compare total cost. Our comparison tool examines broker fees in addition to comparing currency exchanges.

Sending money abroad is made simple with FXcompared. You can compare transfer fees and exchange rates to save up to 90% on fees and charges versus using your bank when sending money overseas. Compare providers and save money now.

FAQs

Why are exchange rates important?

If you are sending a larger amount of money, even a tiny, fractional change to the exchange rate can make a huge difference to the amount charged to send money abroad.  

How do I get the best exchange rates for larger amounts?

The good news is that many money transfer providers tend to offer discounted markups on exchange rates for larger transfers. The best way to compare and contrast exchange rates is by using FXcompared. 

Why do exchange rates fluctuate?

The base exchange rate can change based on a number of factors, including inflation, rising interest rates, political or economic instability and changing markets. However, in addition to this, money transfer providers can opt to change their pricing structure depending on their business needs. 

Does the bank offer good exchange rates?

Even the best foreign exchange rates provided by banks are still often far worse than those offered by money transfer specialists such as Wise, OFX or Currencies Direct

Want more information about sending money abroad? Read our other step-by-step guides below. 

Guides

Exchange Rate Comparison

Results are ranked in order of the best overall deal, taking into account transfer times, rates, fees, and customer service.

Money Transfer Reviews

Use our Currency Tools

Currency Volatility Tool - assess the impact of currency risk

Currency Analysis Tool - conduct an audit of historical transactions


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FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended.  FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.