What is Currency Conversion?
The ability to convert the currency at hand to another usable currency is called currency conversion. It has been defined in several ways by different people but one thing remains constant – currency change from one rate to another. Now, this conversion is only possible because of a determinant factor which is called the exchange rate. Companies like CurrencyFair provide exchange rates from one currency to another to ensure transparency and an easy conversion process.
The exchange rate is determined by the market, i.e., the value of the money at hand to the money intended to be changed to. For instance, if you have 1 Pound and you would love to convert to USD, the current market exchange rate is going to be the major interplay for the conversion process. It is always very easy but there are ways in which it is used which makes a lot complex.
One of these ways is in transferring money abroad from one’s country. There are lots of ways to do these but the commonest and easiest way to transfer money is through online experts like CurrencyFair. Although they offer onsite conversation rates onsite, they also help to foster a fast and secure transfer. Indeed, currency conversion is an important aspect of finance in the world.
CurrencyFair: The Cheapest Transfer Company
We have mentioned CurrencyFair and the incredible things they offer, but it is also important to share what more about this company for better understanding. It is a marketplace that has been designed to connect people and ensure the easy flow of money between countries. They are fully licensed and available to about 61 countries. They have been in existence for many years and have created a level of trust in the hearts of many users who have registered on their platform. They make sure the registration process is stress-free and the transfer process is less time-consuming.
However, you can’t just transfer any currency on CurrencyFair without confirming the types of currencies available for transfer. Currently, they can only transfer 15 currencies even though there are plans to make sure they are open to more.
Also, they are safe and secure and this is all because of the protocols in place to ensure that. The protocols include; 2-Factor authentication, segregated customer accounts, encryption, and biometric security. So, there is nothing a customer needs to worry about because they are dependable.
How CurrencyFair Makes Profits Through Our Transfer?
Now that we have understood what CurrencyFair is all about, how do they make profits from customer transfers? Well, the company chooses reputation over profit because it determines how well they are going to get users or customers. However, the profit aspect is still important. They make a profit through the fees charged for transfer from one country to another. On average, the transfer fee is €3 while the exchange rate margin is around 0.40% which influences every transaction made via the platform. Combine all of these from different customers and the fees add up to the profit made by the company.
In general, the profit comes from two sources; the marketplace hosting where they charge a fee in percentage for any transaction and the €3 fee.