Justin Bieber tips to get the best exchange rates for Canada
Wondering what JB has to do with best exchange rates right? I know it looks like another catchy title made for you to click but it’s not! First of all, did you know that the singer is Canadian? For no reason I thought he was American! As an international popstar, there is no doubt that he gets paid in USD most of the time and probably need to make transfers to Canada right? That’s when he needs to get the best exchange rates!
How do you know what best exchange rates are?
If you remember a bit of your economics classes in high-school, you probably remember what exchange rates are: one currency value defined against another one. Indeed, there is nothing like an absolute value of a currency. These values are defined on the foreign currency market. As any market, it is very volatile and exchange rates fluctuate constantly because of the law of demand and supply or external events such as presidential elections or wars.
Still following? So you might be wondering how the notion of “best exchange rates” can exist. Indeed, it is quite relative and actually depends on a certain period. It would be more correct to talk about the best exchange rates within the last 2 weeks for example.
How to get the best exchange rates for a transfer?
When it comes to money transfers, exchange rates are important, especially if you are sending large amounts of money (just like Justin probably does!) Imagine if JB needs to send USD10,000 to Canada.
Mid september the exchange rate USD-CAD was 1/1,28 and today it is 1/1,35. Image he had made his transfer in September, he would have potentially lost USD700.
Ok, it might be nothing for him, but still!
However, you might told me that you do not have time to wait for the exchange rate to be perfect and therefore you need to find a way to compare money transfer operators and make sure you get the best exchange rates you can. Here is a great comparison platform that does the job for you, comparing them in real-time.
Seek for the best exchange rates like seeking for gold
Alright, seeking for the best exchange rate as if you were looking for gold might seem a bit exaggerated. Well this actually depends on which kind of person you are. Indeed, if you were living in Switzerland in January 2015, looking for the best exchange rate could have saved you 20% if you had waited for beginning of January 2015 vs end of December 2014 to trigger any payment from Swiss Francs to euros.
The same kind of phenomenon occurred recently with the Brexit. Here again, the impact of the exchange rate can be capital for many people: retired UK citizens living abroad who receive their pensions in pounds, people who have invested abroad with a loan in pounds….
Though these 2 cases seem to be extreme, we can also easily picture how constantly looking for the best exchange rate is important for everyone.
Everyone should constantly look for the best exchange rates
In general, the impact of currency fluctuations is between 1 and 5% each month! This meaning that if you were to transfer dollars to euros, euros to dollars, dollars to Indian roupies… either way, you could save between 1 and 5% of the amount sent. Therefore, it is now easier to picture how everyone is concerned. Take migrants who regularly send small amounts back to their siblings stayed home. If we alleged a family sends 300 € each month back to its family in India, if they save 5% on each transfer, then waiting for the best exchange rate will have saved them 180 € in one year which represents more than half the amount they send each month !
We could also take the example of parents paying for their children tuition fees abroad. If they have to pay for onerous Management/Business schools for example, they even saving “only” 1€ at each transfer will represent a consequent amount of money at the end of the day.
Start using the best exchange rates now!
Following the exchange rates is not sexy at all. Even people working in finance would easily be fed-up of having to check currency evolutions every day. This is why I use and recommend an exchnage rate tool which a friend suggested to me.
Now you can start saving between 1 and 5% each time you want to send money from one currency to another! Enjoy !