Broker Versus Bank Exchange Rate Comparison
Exchange rates for currency brokers versus high street bank rates, banks typically apply an exchange rate margin of between 2 and 6 percent on transactions. This means that if you were to make a transfer to or from euros using a standard bank service, then you could potentially lose thousands of pounds due to the poor FX margin rate offered by banks.
Euro Money Transfer Comparison – FX Currency Brokers
|FX Broker Rates||FX Rate||GBP to EUR||FREE QUOTE|
|Currencies Direct||*0.65% to 1.0%||€1.085 to €1.088 info||Enquire|
Bank Rate Comparison – UK Accounts
|Bank Name||FX Rate||GBP to EUR||FREE QUOTE|
|First Direct||*5.0%||€1.04 info||Enquire|
|Lloyds Bank||*5.0%||€1.04 info||Enquire|
|TSB Bank||*5.0%||€1.04 info||Enquire|
*Note: A lower FX Rate will give a better exchange rate when transferring money to/from euro.
What is an exchange rate margin?
Exchange rate margin is the amount the bank, currency transfer broker or foreign exchange bureau adds onto the interbank exchange rate when they quote the rate for a money transfer. The smaller the margin rate, the less it will cost you.
Exchange Rate Margin Examples:
High Street Banks – typically 1.9 to 6.2 percent
Private Foreign Exchange Brokers – typically 0.7 to 1 percent
Other Useful Information – Commission Fees Etc
Bank money transfer information: General Guidelines – High street banks also charge a commission fee when sending money abroad into another currency – Private brokers offer commission free currency transfers typically over a value of £5000 or €5474.435 euro.
Banks will charge you a money transfer fee every time you send funds abroad into the euro or another currency. Bank transfer commission fees range from £15 to £30 depending on the bank.
Unless you pay a premium, high street banks will take from 48 hours to 7 days for your funds to arrive at the destination bank.
Euro Transfers – Commission Fees & Charges
Depending on the amount of money that you need to transfer into euros, private foreign exchange brokers may charge a commission fee on top of their margin rate, however their fees are once again lower than high street banks will offer. Moreover, transactions over 6000 euro are commission free with most foreign exchange providers.