If you have ever travelled abroad, you can relate to the pain of exchanging currencies. There are so many fees, you never know how much to exchange and don’t want to end up with leftover currency upon returning home. Often, you’re not even sure of how much you are losing on the exchange because most banks and exchange offices never really tell you how much they are charging you.
For example, you head to a currency exchange office and ask how much commission they charge, and the cashier tells you the fees are 20$. You then ask what the fees are on the rate and they tell you that the only fee is the 20$ commission. What they do not tell you is that their exchange rate has a 4% markup on the official rate of the day. Between the selling and buying price, there is often an 8% difference. That means, that on 1000$ exchanged, you are losing 60$, but they only make you believe you are paying 20$.
To make matters worse, when you return, if you are left with 100$ and want to reconvert it to your original currency, they will charge you another 20$ plus the 4$ on that 100$. In total, your trip has cost you an additional 84$ just in currency exchange. In a way, it’s understandable that the fees are high: rent, employee salary, large inventory of currencies therefore stagnant capital. What is frustrating is the way they go about hiding the fees. More and more people are starting to realize this and are asking: how to stop paying hidden currency exchange fees?
Then there is Cambexo, that allows you to trade currencies without having to go through a bank or a currency exchange office. Cambexo is a peer-to-peer platform that enables you to search users that want your currency, and that have the currency you need. Both sides use the official rate of the day, therefore no one loses 4% and no one pays the exchange commission.
Other platforms do exist but they involve bank transfers, which normally comes with a fee. In addition, banks do not tend to allow deposits in different currencies. They will convert and charge you a different exchange rate than the official one. These services are more oriented for expats that want to transfer money back home. For tourists to have cash in a foreign currency, Cambexo is the only online site that allows for transfers between users without needing a bank.
Welcome to the era of collaborative economies.