Finex Currency Exchange is the world’s largest retail provider of foreign currency in Vancouver BC Canada, offering the best rates, in comparison to all other competitors.
We know that exchanging currency can be a little complicated at times. There are a number of terms and phrases connected with the foreign currency exchange process which many people are unfamiliar with. As the world’s foreign-exchange specialist, we want to make exchanging money a simple process and help people understand it more detail. We have broken down currency terminology to make your life a little easier. We hope this will;cut through the confusion;
- make sure you understand how to get the best value for your travel money; and
- make changing your money one less thing to worry about the next time you head abroad.
Currency Exchange Terminology Defined
Sell rate is the rate at which we sell foreign currency in exchange for local currency. For example, if you were travelling to Canada, you would exchange your currency for Canadian dollars at the sell rate.
Buy rate is the rate at which we buy foreign currency back from travellers to exchange into local currency. For example, if you were returning from America, we would exchange your US dollars back into Canadian dollars at the buy rate.
Spot rate is known more formally as the ‘interbank’ rate. It is the rate banks or large financial institutions charge each other when trading significant amounts of foreign currency. It is not the tourist rate and you cannot buy currency at this rate, as you are buying relatively small amounts of foreign currency. In everyday life, it is the same system between wholesale and retail prices. The rates shown in financial newspapers and in broadcast media are usually the interbank rates.
Spread is the difference between the buy and sell rates offered by a foreign-exchange provider such as us.
Cross rate is the rate we give to customers who want to exchange currencies that do not involve the local currency. For example, if you want to exchange Australian dollars into US dollars.
Commission is a common fee that foreign-exchange providers charge for exchanging one currency to another.
More information on Finex daily exchange rate click here