Let's see how the exchange rate works
The exchange rate means the conversion of one local currency into another when sending money abroad. As part of an international transfer carried out by the bank or transfer services, the client's currency is converted into a foreign currency depending on the exchange rate at the time of the transaction.
When are exchange rates applied ?
The exchange rate applies if you send money from your account to another account in another currency, whether it is sending money to relatives abroad or just transferring between two accounts in your name.
To make sure that the amount sent in one currency corresponds to the amount received in another, an exchange rate reflecting the value of each currency is applied at the time of the transaction.
International online transfers.
During online communication at the international level, the client chooses the bank or digital platform he needs, which offer him an exchange rate before processing the transaction.
All online banks offer transfer services, and some companies specialize in international transactions, such as Wise, MoneyGram or WorldRemit. Wise services are integrated into the N26 app to offer fast and reliable international transfers in 38 currencies.
How does the exchange rate work?
During an international online money transfer, the customer chooses a bank or digital platform of his choice that offers him an exchange rate before processing the transaction.
All online banks offer money transfer services, and some companies specialize in international transactions, such as Wise, MoneyGram or WorldRemit. Wise services are integrated into the N26 app to offer fast and reliable international transfers in 38 currencies.
Exchange rates and fees.
When a bank or company offers its own exchange rate, the customer has a choice whether to accept it or not. If he accepts it, the transaction will be completed. In addition to the exchange rate, certain transaction fees, also called fees, can also be applied to international transfers.
Rates and fees can vary significantly from bank to bank and from one money transfer company to another. Learn more about banking fees abroad here.
How to trade foreign currency.
Money transfer companies are the best option for sending money abroad in terms of speed and cost, as they are based on average market exchange rates in real time.
In addition, these companies charge a lower commission because they are not subject to the overhead that banks have to pay. Finally, they usually show transparency by indicating in advance what expenses should be expected.
You can also familiarize yourself with fraudulent brokers.
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