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How companies can save on foreign exchange?

Thursday,

Polish businessmen who are successful in foreign markets often wonder how not to overspend while making transactions in conjunction with currency exchange – which is common during the import or export goods. They have many options to choose from – the offers of banks, as well as stationary and Internet-based exchange offices. The fundamental question lies in which channel is best for them and, namely, what to look for when selecting an offer which will not generate considerable costs associated with currency exchange at unfavorable rates.

Currency exchange and foreign transfers online

It is worth noting that Internet-based currency exchange is much cheaper than that of banks. By providing our service through the Internet we can be sure that we minimalize costs associated both with currency exchange and transfers of sources as well as with time – which (as we well know) is also money.
The service is available online 24/7 and can generate savings through favorable exchange rates at a minimal spread (the difference is usually around 100 to 300 basis points). Exchange rates and spread are much higher in banks and stationary exchange offices. As a result, the exchange rate offered to the customer differs significantly from the average rate. However, in Internet-based exchange offices, where the spread is minimal, transactions are concluded at much more favorable rates, allowing clients to save up to 7%.
Let’s compare the costs of exchanging foreign currency online with those associated with currency exchange in a physical bank. Here we will assume that we sold some kind of goods to a trading partner in Germany for EUR 10 000.

Own description
Name of the institution Buying rate Selling rate Average rate Spread The amount received from the transaction Savings
Trejdoo.com 4,1977 4,2163 4,2007 0,0186 41 893,05 PLN 1 105,05 PLN
Bank 4,0788 4,3312 4,2007 0,2524 40 788,00 PLN
Negotiated exchange rates

Another convenient service lies in the ability to negotiate exchange rates. In Internet-based exchange offices, clients are free to negotiate the rate of exchange for an equivalent of 1 000 PLN or more, which is undoubtedly a considerable benefit for businessmen. On the other hand, banks allow exchange rate negotiations at an equivalent of 10 000 PLN for a single transaction, and stationary exchange offices offer no such possibility. These „restrictions” often inconvenience businessmen. That is why it is worth checking which exchange office allows for such negotiations. The Trejdoo platform allows its users to negotiate exchange rates from 1000 units of any currency, so that in each transaction of exchange there exists the possibility of negotiation.

FX dealer support

It is a well-known fact that businessmen execute turnovers of relatively large sums of money. Consequently, the decision of utilizing the services of Internet-based exchange offices can sometimes be quite difficult to make. Therefore, such companies offer the support from FX dealers, who can explain how the platform works and advise when to exchange currency for the most appropriate rate. How to do this best? Just make a phone call to the FX dealer to dispel any doubts. The conversation lasts just a couple of minutes and can bring measurable benefits.

It takes only a few minutes to exchange currency on the Internet and send funds to a business partner, saving both time and money. Because the most essential part of any business is profit, it is worth considering and comparing the services available on the market.