foreign currency - exchange vs bank
ps56k
Foreign Currency exchange rates...
Our son is in Germany for a year,
and we have sent him some Euros for birthday etc.
Why is the exchange rate quoted on TV or Yahoo Finance
different from the banks (Chase & BOA)
when they say they don't charge any fees or commissions ???
ie -
Wells Fargo - $100 = 159.18 euro
Chase - $100 = 158.89 euro
Yahoo - $100 = 150.48 euro
--
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"If everything seems to be going well,
you have obviously overlooked something." - Steven Wright
Avrum Lapin
"ps56k" <pschuman_...@interserv.com> wrote:
> quick question for the knowledge of the group
>
> Foreign Currency exchange rates...
>
> Our son is in Germany for a year,
> and we have sent him some Euros for birthday etc.
>
> Why is the exchange rate quoted on TV or Yahoo Finance
> different from the banks (Chase & BOA)
> when they say they don't charge any fees or commissions ???
>
> ie -
> Wells Fargo - $100 = 159.18 euro
> Chase - $100 = 158.89 euro
>
> Yahoo - $100 = 150.48 euro
Are the quotes for buying euros with dollars or buying dollars with
euros.
Certain quotes (e.g. WSJ) are for $1,000,000 transactions.
Final note - my MasterCard at an ATM machine has always been better than
any change rate or bank even after the MC 2 to 3% commission (Euros in
Italy in 2005, Pounds in England 2007, Shekels in Israel in 2009). In
previous travels I found banks better than money changers in Hong Kong,
Tahiti, Denmark, Spain, Netherlands and cash always better than
travelers checks.
ps56k
"ps56k" <pschuman_...@interserv.com> wrote in message
news:hf9emj$cue$1...@news.eternal-september.org...
> quick question for the knowledge of the group
>
> Foreign Currency exchange rates...
>
> Our son is in Germany for a year,
> and we have sent him some Euros for birthday etc.
>
> Why is the exchange rate quoted on TV or Yahoo Finance
> different from the banks (Chase & BOA)
> when they say they don't charge any fees or commissions ???
>
> ie -
Wells Fargo - 100 euro = $159.18
Chase - 100 euro = $158.89
Yahoo - 100 euro = $150.48
--
dapperdobbs
> quick question for the knowledge of the group
> Foreign Currency exchange rates...
Banks and airports charge 6% (last I recall) (ripoff). American
Express may offer currency conversions at more reasonable rates (for
small amounts), via travelers cheques. Best bet is to look in Germany
for a dedicated exchange shop. If your son is in the military or
diplomatic corps or other, he might have access to better conversions.
Might also ask Western Union. The futures quotes you see are for 125k
USD (I think that's right - haven't checked on it). Banks trade
*their* stuff at futures quotes!:-) Cards may charge like $85 bucks
if you charge something in a foreign country, I think 3% for a cash
advance.
terrable
"Avrum Lapin" <avru...@verizon.net> wrote in message
news:avrum223-94A23E...@news.solani.org...
MaterCard and Visa charge a 1% fee for withdrawals from foreign currency
ATMs. Any fee above 1% is being imposed by your bank/financial institution.
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terrable
"ps56k" <pschuman_...@interserv.com> wrote in message
news:hf9emj$cue$1...@news.eternal-september.org...
>
> Foreign Currency exchange rates...
>
> Our son is in Germany for a year,
> and we have sent him some Euros for birthday etc.
>
> Why is the exchange rate quoted on TV or Yahoo Finance
> different from the banks (Chase & BOA)
> when they say they don't charge any fees or commissions ???
>
> ie -
> Wells Fargo - $100 = 159.18 euro
> Chase - $100 = 158.89 euro
>
> Yahoo - $100 = 150.48 euro
>
The foreign currency exchange outfits that say there are "no fees or
commissions" are telling a half truth. They are using a very wide bid/offer
spread to make money.
For example if the Euro is at $1.50 the bank will buy Euros for $1.41 and
sell them for $1.59. A fairer dealer will have a narrower spread, say buy
$1.48 and sell $1.52.