Re: Buying euros

There is a spread at all the Bureaux D'Exchange, surely? And some have % commission charges, that's why I mentioned the P.O. especially for small amounts.

Yes, but those who boast "no commission" tend to have a wider spread, so the "no commission" claim isn't a sensible criterion on which to choose a dealer. The only question worth asking is "how many Euros will you give me for this amount of money?".

The Post Office may or may not offer a good deal in comparison with other bureau (I don't know). It's sensible to recommend it if it offers more Euros for your pounds than any other dealer but not simply because it doesn't levy commission.

This point clearly isn't generally understood because so many people recommend the Post Office "because they don't charge commission".

Mike.

Mike wrote

True.

In the UK it seems most forex places are jumping on the "commission free" bandwagon - often making out that it's a special deal only available to a privileged few. Another con is the "commission free buyback" - where you really get charged about 11% (the difference between the buying and selling rates). It's time the ASA banned this bullshit - banks and CC companies have to declare how much they mark the interbank rate up when you make transactions abroad, so should forex places. Abroad, most forex places will charge commission but will have much lower buy/sell spreads and are nearly always much better value.

But for most travel purposes, there is simply no need to exchange cash. Every major airport will have ATMs (with forex booths as a backup in the unlikely event of all the ATMs being down), and even taxis usually take credit cards if all else fails (if they don't - just get them to take you to an ATM). I go abroad 2-3 times a year and haven't changed cash in the UK for a very long time.

I don't think that you've looked recently.

IME the spread in Exchanges in the Euro Zone is commonly more than

10%. They have all adopted the UK model of charges. There simply isn't the business any more to make a profit on a 3% margin.

Only in countries that have a lot of visitors that need to change money (Scandinavia) or where they want to 'buy' foreign currency (some part of E Europe) can you find fees in the lower ranges.

Exactly.

tim

Funny you should say that - IIRC in Europe the only places I have exchanged cash in the last 10 years are on a ferry to Denmark and on a ferry between Denmark and Sweden, and their rates were excellent. Outside Europe the typical buy/sell spread seems to be about 4%, not the rip-off 11% you tend to get here.

In message , Mike writes

But you can have fun with them, it does get the person serving you nicely confused when you have a conversation that goes like this:

A: How many euros will you give me in exchange for £100? B: 140 A: How many pounds will you give me for 140 euros? B: Hey? Er um, I just told you. A: No, if I give you 140 euros how many pounds will you give me? B: Oh right, err, 92 A: Thank you, so your commission free deal would cost me £8 B: Err, we don't charge commission A: Of course you don't, nudge nudge, wink wink

In message , Gordon writes

Last time I tried it was US$ and Lloyds worked out considerably better than the PostOffice 'commission free' offering.

Dont be silly! Live in the real world! It would be someone who looks a bit like the guy whose name was used that would be shot.

No, that's too far-fetched. The guy who's shot would look nothing like the guy whose name was used. He'd be of a different ethnic group entirely, yet would still be "positively identified" before being held down and shot dead without warning.

Mike.