5 Reasons Online Foreign Exchange Services Are The Way Forward
Whether you are preparing for a holiday abroad, or making business payments, it pays to know what your options are when it comes to foreign exchange (forex) services. Whichever category you fall in, it’s safe to say that making that trip to exchange money can be time consuming and you can never be sure if you are getting a good rate.
Doing it online is the fastest and most convenient way of changing currency today. How it works is, you order the currency of your choice online, pay online, and collect it at the pre-determined pick-up locations.
Making your forex transactions online saves you not only the time or hassle, it also allows you to keep abreast of currency rates in real time. Here are some amazing benefits you get if you choose to do your forex transaction online with eForex:
1. Competitive exchange rates
Most online platforms are typically run by the larger Money Services Business operators, and they offer you better rates for your currency exchange. Such foreign currency wholesalers buy currencies at the inter-bank rate and sell it at a lower margin than banks or money changers, allowing their customers to save money on their foreign-exchange related payments.
One of these currency wholesalers that also offer their services to consumers online is Merchantrade Asia who also has an online platform, eForex. Here’s the difference between buying currency online and at a conventional money changer.
To change RM1,000 to Thai baht, here’s the difference in the rates:
RM1,000 = THB8,071.03
RM1,000 = THB7,812.50
With just RM1,000, the savings might not be significant, but, for larger amounts, or if you need to exchange frequently, you can really save on the difference. As an example, if you need to transact up to RM600,000, the difference can be significant at THB155,115.01 or RM19,218.75.
RM600,000 = THB4,842,615.01
RM600,000 = THB4,687,500.00
On top of this, eForex has special deals on Mondays called “Hot Currency Deals” where they offer significantly discounted rates on select currencies. This isn’t something you’ll find at the physical money changers, we promise you that!
2. Better convenience
It is also more convenient to exchange money anytime, anywhere rather than run around looking for a money changer. By opting to trade your currency online using your computer or mobile phone, you can better manage your time on a busy day and still not miss out on getting the best rates.
The best way to look for an online forex exchange site that allows you the best convenience is to find one that allows you the most flexibility, such as extending pick-up period.
The eForex platform allows you to lock-in your exchange rate and pick it up later whenever you are free – up to 6 months from the date of your transaction. There is also no additional charges imposed on collection.
The minimum transaction is RM300 per currency. For the really busy consumers, you can even assign a third person to collect the currency exchanged on your behalf from any Merchantrade branch. However, you are required to pick it up personally for your first transaction. This collection service is especially useful for companies – you can assign your staff to pick up the money on your behalf with the required identification documents along with the pin number for verification.
3. Lock-in real time rates
The ringgit started sliding against the greenback since 2014. On August 15, 2014, the ringgit was 3.1537 against USD, and at the time of writing (November 15, 2016), the rate was 4.350. Forex has been known to be volatile, and if you are regularly exchanging a big amount of money, it pays to monitor the rates movement closely and strike when rates are good.
You are afforded this convenience with the Internet, but certain online foreign exchange platforms go a step further by allowing you to lock-in the rates at your convenience.
eForex gives you access to real time exchange rates and you would be able to lock-in your currency on the spot, rather than at the time of the currency pick-up. This means you can lock-in your rates up to 6 months ahead – for the 20 currencies available.
To get even better rates, look out for their Hot Currency Deal every Monday for selected currencies.
With access to real time rates, individuals or companies will be able to base their decisions on the most up-to-date currency exchange rate. This is especially crucial for business traders as small difference in rates can make a huge difference in profits.
4. Be alert of changing rates
Monitoring currency exchange rates doesn’t have to take up all your time. You can set your rate alert feature so you won’t have to miss out on a good rate again.
For example, on July 15, 2016, the ringgit was valued at US$3.9457, and then it increased to US$4.0790 on July 27, before dropping again to US$3.9883 on August 10.
To illustrate the impact on your money, here’s the difference the fluctuating rates could make if you were to get US$1,000:
RM1 = US$3.9457
RM1 = US$4.0790
RM1 = US$4.350
As foreign exchange rates widely fluctuate according to the ever volatile market changes, you can be well informed on such rate changes and quickly take advantage when a desirable exchange rate arrives.
Foreign exchange platform like eForex allows you to monitor the rate of your preferred currency via email alerts. You can then decide to make an immediate transaction accordingly.
You can pre-set the rate you are looking forward for and you will be immediately notified via SMS, e-mail or an app alert when that specific rate is available.
However, you may need to wait until the desired rate is achieved – which may come late or never come at all. So, it will be best that you determine the waiting period ahead and tweak your expectations accordingly, if your desired rate does not pop-up during the said period.
Sometimes, online transactions can be scary due to the many online scams and phishing activities, especially if it involves monetary transaction.
To ensure you are making your transaction on a secure platform, look for platforms that use standard Secure Sockets Layer (SSL) technology to encrypt all personal data transmissions
This technology provides you with highest level of security, whereby all personal and payment information passed between your computer and their website cannot be accessed by a third party. In addition, you need to ensure that the service providers you choose are licensed by the Central Bank to provide MSB services.
Other than convenience, one should always consider the safety of handling a large sum of money while traveling to a money changer that offers the best rate, queuing up, and finally bringing back a large sum of foreign currency. There are so many instances where your safety and the safety of the money you are holding can be affected.
Simplify your life by exchanging your currency online, and you will just save enough money for more shopping overseas!
Check out eForex at eforex.com.my or download the free app from the Apple or Google Play Stores.