Exchange Rate FAQs
How to calculate exchange rates?
Calculating exchange rates is easy. Let’s say that the GBP to EUR exchange rate is 1.1149 and you have £100 and would like to buy euros. To find out how many euros you’ll receive, just multiply the £100 by 1.1149. So in this example, you would get €111.49 for your £100.
Why do exchange rates change?
In a nutshell, currencies fluctuate based on supply and demand. A high demand for a currency or a shortage in supply will cause an increase in price. The supply and demand of a currency is tied to a number of intertwined factors such as inflation rate and the country’s political and economic conditions. With some many factors at play it is impossible to accurately forecast currency rates.
How to get the best exchange rate?
If you’re planning a trip aboard soon you should start by monitoring the currency market to get a better picture of rates and trends for the currency you need. You will then be in a better position to identify the best time to buy your travel money.
Our click & collect service allows you to secure your exchange rate online with a 2-day rate guarantee, before collecting it when convenient for you in store.
Is a higher or lower exchange rate better?
A higher exchange rate is better when buying travel money. As when you exchange currencies, you’ll get more of the foreign currency that you’re buying. However, a lower exchange rate is better when selling foreign currencies.
Should I compare currency exchange rates?
Shopping around for the best currency rate makes sense. In the UK, there are a lot of currency exchange providers to choose from. A competitive market place like this, usually means very little difference in the rate quoted.
Currency exchange terminology:
Currency pair: is the quotation of the relative value of a currency unit against the unit of another currency on the foreign exchange market. Currency pairs are often written like this: GBP/EUR, GBP/USD, GBP/CAD.
For example: if the GBP/EUR exchange rate is 1.1149. This means 1 pound is equal to 1.1149 euros.
Buy rate: is the rate at which we buy back currency from you. For example, if you had leftover euros from your holiday, we would convert your euros back into pounds at the buy rate of the day.
Sell rate: is the rate at which we sell currency to you. Order currency online for our best sell rate and pick up in one of our 350+ locations.
Tourist exchange rate: it’s another term for sell rate. It is the exchange rate at which you buy your travel money at.
Base currency: on the foreign exchange market, currencies are quoted as currency pairs. The first currency in the pair is known as the base currency. Using the GBP/EUR exchange rate example above, the base currency here is British pounds.
Commission: is the fee charged for the service of carrying out a foreign exchange transaction. We offer 0% commission on all our travel money transactions.