XE.com do not quote a rate that you can buy or sell at. From their site:
"The mid-market rates shown in our information services are neither "buy" rates nor "sell" rates. Mid-market rates are derived from mid-point between the buy and sell rates of large-value transactions in the global currency markets.
Since "buy rates" and "sell rates" include overheads and profit margins that are set independently by each foreign exchange provider, they will vary depending on who you're talking to, and will always be different than the mid-market rate."
Comparing the rate on offer from a local money changer and from XE.com will almost always be misleading. The best comparison to make is to look at what is available to you in the place you are at, with the amount you want to trade and including commissions. Forex in Finland usually seem to give competitive overall rates, especially compared to the places on Esplanade. The difference between what XE posted and what you paid is not commission.
Currency exchange rates
That is not quite true. Mastercard charges 1% for what they call 'network usage', outside of Europe, or if coming from the US (for example) to Europe, in Europe.
A very few banks are not passing this charge on to their cardholders, IIRC Nationwide Bank in the UK is one of them. Also, many card issuing banks charge when a card is used in an ATM that is not a part of their of their own consortium of ATM operators, going abroad means that often you will pay this fee.
So, if your particular issuer is not passing on these fees, then be happy and tell everyone who the issuer is. But Mastercard certainly does charge all their branded cards fees for international usage.
A very few banks are not passing this charge on to their cardholders, IIRC Nationwide Bank in the UK is one of them. Also, many card issuing banks charge when a card is used in an ATM that is not a part of their of their own consortium of ATM operators, going abroad means that often you will pay this fee.
So, if your particular issuer is not passing on these fees, then be happy and tell everyone who the issuer is. But Mastercard certainly does charge all their branded cards fees for international usage.
It was an actual Forex with an actual employee and it was december last year near Esplanadi park. I was trying to exchange USD to EUR.superiorinferior wrote:Are you sure this was an actual Forex employee? I have had nothing but good experiences with them, and if you change your money with them, you can change back (save the receipt) any leftover bills for free.catcher wrote: I was shocked when I tried to exchange $$ to euros in Forex here. They make money on exchange rate and plus they take 10% commision!!!!??? When I asked person are you kidding? - he said ok, let's go with 5%)))) This was another shock... looks like a fleamarket and not a currency exchange.
I am pretty sure that Forex doesn't take any commission (except on travellers cheques), but does charge a fee for cash exchange.
http://www.forex.fi/pricelist.asp?sectionId=3531
I've changed currency in many countries and never heard anything about commission and even about fees.
Do you think their website is updated?
When you write 'it was an actual Forex' do you know that in Finland there is an actual firm called Forex, who have a very good reputation and also there are many firms offering forex (foreign exchange). On Esplanade, there are many forex bureaux that DO charge commissions and are not a good deal. There is but one Forex bureau.
I have a funny feeling that you dealt with one of the forex bureaux and not with Forex, the well reputed firm mentioned several times. That would explain much. Forex branches have a bright yellow fascia and the staff wear uniforms that include waaaay too much yellow for good taste, they make their money on the excahnge rate spread, not from explicit commission, at least on normal cash sales.
Commissions, spreads and fees are normal in foreign exchange at retail level, it is after all how the bureaux make the money that allows them to open to serve you. As Penelope noted, in one way or another you will pay
I have a funny feeling that you dealt with one of the forex bureaux and not with Forex, the well reputed firm mentioned several times. That would explain much. Forex branches have a bright yellow fascia and the staff wear uniforms that include waaaay too much yellow for good taste, they make their money on the excahnge rate spread, not from explicit commission, at least on normal cash sales.
Commissions, spreads and fees are normal in foreign exchange at retail level, it is after all how the bureaux make the money that allows them to open to serve you. As Penelope noted, in one way or another you will pay
Actually there is a fee: http://www.forex.fi/default.asp?redirect=1, but it is only 2,5 €.
