Currency converters aren’t just for currency brokers and dealers. They can be a convenient and valuable resource for anyone who buys or sells currency. Whether you’re buying for your next vacation, selling from your last trip, or simply trying to familiarize yourself with the market, a currency converter can help!
A currency converter is an extremely useful tool for getting an estimation for buying and selling currency. Currency converters show the mid-market rate which is the average of the buying rate and the selling rate. The “buying” or “bidding” rate is the rate which brokers will buy currency. The “sell” or “ask” rate is the rate which brokers will sell currency. The buying rate is always a little better than the selling rate. Since the mid-market rate is the average of the two, it doesn’t give you an accurate quote of either the buying or selling rate. Keep this in mind when you google an exchange rate! The rate you see is now the rate that will be offered upon purchase. Rather, you can use the mid-market rate to estimate the general value of the currency and assume that if you’re buying currency the rate will be slightly better than the mid-market rate, and if you’re selling currency, you can assume the rate will be slightly worse than the mid rate.
Learn more about mid-market rates with our in-depth FX101.
There are several ways you can take advantage of a currency converter. Knowledge is power, and a currency converter can give you a lot of information to make the best decisions when it comes to currency.
Know when to buy
Essentially, a currency converter is a calculator that shows the current rate between different currencies. Users can compare multiple currencies on the go. In addition, some rate trackers allow you to view historical rates and trends – effectively enabling users to buy currency at the lowest prices and sell at the highest. So, you can pick the best time to buy currency before your trip, when to sell back your currency leftover from your vacation, and when to exchange the foreign currency you have for the one you’ll need on your next trip!
Budget your foreign purse like a pro
A currency converter can also help travellers budget while on vacation. As a quick calculator, the currency converter can convert prices for foreign shoppers, so you know roughly how much CAD something costs and decide whether it’s cheaper to buy the item back home.
Stay informed. Stay Current.