Currency exchange – we go to him before vacation, holidays, we analyze his conversion rate, we wonder how much we can save and how much to spend more due to the applicable exchange rate. We often look for the cheapest in the city, bid and negotiate if we plan to buy or sell more. Among the possibilities, we often forget about online currency exchange offices, which often offer us more attractive currency exchange conditions. What does such an exchange look like? Is it actually more profitable and what should we know before we decide to use such services?
Online currency exchange offices – what’s going on?
Online currency exchange offices appeared in Poland a few years ago. Simply put, these are special services that offer us currency exchange operations from one to another, via websites, directly from our bed or sofa. As you can guess, this process is done completely electronically and – importantly – without the risks associated with traveling with a large amount of money. So we save time and, as it turns out, also money.
To understand the existence of online exchange offices, let’s compare it to traditional stationary exchange offices. In the latter, exchange rates are set by the owner based on buying and selling the currency. So we can spend more than we planned, and negotiation attempts may prove unsuccessful. The difference between buying and selling is the so-called the spread is the decisive factor in the profit of a given exchange office. That’s why we often buy currencies more expensive and sell them cheaper.
There are customers on both sides of the online currency exchange office. If user A wants to buy euros, he calls to user B who is selling the euro. So you can talk about a market similar to the stock market, thus improving the entire sales and purchasing process. One fact is crucial here – reduce transaction costs.
How to use the online currency exchange?
First of all – you need to set up your individual account in a given online exchange office. It is usually simple and similar to setting up an account in online stores. Provide your real data that will be used for verification.
Then transfer the amount you would like to exchange to the exchange office. So if you want to exchange 100 euros, make such a transfer exactly. If we buy foreign currency – we transfer USD. If the opposite is the currency to do so (i.e. the euro or dollars mentioned). The next step is to post an offer on the site. For this purpose, we can issue an offer with a specific price, waiting for willing and potential customers. After approving the conditions, the expected exchange takes place. After that, the given amount is transferred to our bank account.
Is it worth it?
Well, let’s answer the question asked in the title. To this end, we have compiled a list of advantages that is associated with online currency exchange services:
- we can use them on our couch, without wasting time on commuting
- we are able to really save and buy currency at more attractive prices – it is extremely valuable
- if you plan to buy or sell a larger amount
- the transactions themselves are accompanied by low costs
- in the case of larger expenses, we can negotiate and reduce the price so that both parties are satisfied and gain more
The only negative that is worth mentioning is the small risk associated with transferring the amount to a foreign entity. So before you create an account and transfer a certain amount, please check whether the domain has the consent of the Polish Financial Supervision Authority to provide payment services.