Commission or Rate?
Something we do naturally is look for special offers, rates or savings. So when you are next buying currency for your holidays or a business trip think about what is being offered to you.
For example, the Post Office for many years have highlighted the fact that they charge no commission on their transactions, but how much does this save you?
Most currency outlets will charge either a fixed fee or a % of the exchange amount.
When you buy a property overseas, rate is paramount, because you are talking about tens or hundreds of thousands of pounds being transferred into another currency, but when you are going on holiday and looking to change £500 how important is the rate and how does it compare to paying or not paying a commission?
It is amazing how many people you talk to who use a certain petrol station because it is 1p or 2p cheaper than the rest but is on the other side of town, even with a large fuel tank savings won’t be much more than £1 and it has cost time and money to go there, but we see the 2p cheaper and we have to have that saving.
Take £500 holiday money as an example, the post office charge no commission but offer an exchange rate to Euros of 1.30, so 650 Euros. A currency company will charge £5 commission but offer a rate of 1.33 and so £495 gets you 658.35, but a lot of people will be swayed by the no commission sign and actually end up with less.
As a company we do not get involved in the retail side of the currency business, but what we do have are currency companies we work with who have come up currency cards, these are very useful, easy to use both buying currency and drawing out at holiday destinations. What we have found in recent years is that more and more of the companies we work with are using these cards for their staff who regularly travel overseas, easy to top up and keeping tabs on expenditure and most importantly making savings with no commission and much better rates than given through post offices or currency kiosks at airports.
It is possible to get your currency at a competitive rate and pay no commission fees.
For more information please feel free to contact us at
Offices in the UK and Portugal.