I recently bought Euros at a rate of 1.435 from Lloyds TSB, with no commission. When I came to sell back the unused notes, I was offered a rate of 1.6 giving me only 62p per Euros instead of 70p. This would have meant a cost to me of over 11% "no commission", or in this case, a loss of £10 on
Am I missing something here, or is this a ridiculously high rate? Where's the best place to sell Euros in the UK? Thanks.
'No commission' means no commission, i.e. additional fee. But there's still a buy/sell differential. That's where they make their money. But different dealers will have different differentials.
Rob Graham
Hmm, but in the main they are mostly selling(*), so the spread is somewhat irrelevant ? To the OP, I would hang onto your Euros or flog them at 1.50 (nice and easy to calculate) to the next friend going abroad.
(*) People tending, in the main, to take only a modest amount in cash, and then use credit or ATMs out of the country.
If you are going abroad again within the next year or two, unless its a large amount, best to hold on and use them next time. Otherwise, you'll take a loss when you convert them to Sterling, and another loss when you convert (effectively the same money) back to Euros again.
You don't get owt for nowt. Firms that charge no commission instead have a wider spread (the difference between bid and ask, i.e. sell and buy, prices).
Jon
Okay, thanks - I'll drop them in the Euro-piggy bank ...
[To email go to my address and take out the dog...]
The spread from the central rate isn't irrelevant. It serves in place of their commission. You are right, though. Keep it until you go abroad again. Alternatively find a shop-keeper who will take it for some purchase, but that will probably be even worse.
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