Author Archives: Xchange Of America

Advice For Money Broker Wannabes

The job description for a money changer or money broker is pretty straightforward. Simply, this calling earns its keep by converting one type of currency to another for a fee. The main clients of money changers are the international travelers who will need to change cash from their home currency to the currency of their destination. Conversely, travelers returning from abroad will need the services of a money broker to change back to their home currency any foreign currency left from their trip. Money changing services are now provided either online or in person.

A corporation or an individual can operate this type of business by obtaining an offshore money broker license. Income is primarily generated from the fee charged for handling the currency, calculating the foreign currency exchange rates, charging the fee, and delivering the client’s needed currency. A business can also derive profit from the fluctuations in forex rates in the international markets.

Engaging in the money-changing business can be a lucrative undertaking. International travel, hassles on airport security checks notwithstanding, remains as active as ever. Additionally, the increasing globalization of business saw more and more ventures overseas. Movement of assets from one country to another and transfer of currencies to tax havens are also contributors to the demand for money brokers. Foreign currency exchange rates can also fluctuate widely, leaving a generous room for profitability.

A minimum of about $27,000 investment, plus an annual operating budget of around $12,500, will be needed to set up an offshore money-changing business. A group of shareholders can be involved in funding the establishment of this business, an operation that will subsequently entail having a set of company officers and electing a board of directors.

As in setting up any company, organizing a foreign currency exchange business will require more than routine paperwork to wade through. Applying for the license for the forex operations can be a complicated task that would require the need for a service provider which already has an inside track on foreign currency trading. For starters, the various international jurisdictions where a foreign currency exchange business operates can vastly differ in terms of policies. There has to be a thorough study on the taxation and regulations on the business.

Ideally, an offshore money broker should operate in a jurisdiction offering some tax advantages, less paperwork and red tape, lower operating costs and overhead. Additionally, the jurisdiction to go for should have adequate regulations i regarding private assets and forex transactions. Such a jurisdiction should also have a pool of competent professionals to assist in establishing and running the money-changing business. Having all these in place opens the possibility of outsourcing some functions and, in the process, enhancing profitability for a foreign currency exchange business.

More Value for Holiday Money with the Euro Exchange Rate

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People may have another economic problem to complain about after the eurozone have gone through instability, which has resulted to the low value of Euro against pound; a level that has not been witnessed for more than 3 years. This economic state can pose a problem to those who buy British pounds since it means exchanging more euros.

Due to the uncertainty brought about by the elections in France and Greece recently, holiday makers and investors ended up getting €1.20-£1. This was €52 more from the previous year when exchanging for £500.

Caxton FX currency analyst Richard Driver believes that British pound will be stronger than euro. Sterling is set to gain momentum from its stable status and eurozone’s worse instability and can realistically be seen achieving the mark of 1.30 euro by autumn.

Even though the eurozone is bleak, it appears that going to a Post Office with some amount of sterling and receiving the same amount in other currency is over. It is not just in eurozone that the value of pound gained strength; if you travel to Brazil and buy Brazilian money your pound can also go further and the same can happen when you visit other countries like Czechoslovakia and South Africa.

What can you say about this? Do you think it is a good move to buy Euro now before its rate shoots up against the British pound or is € 1.20 fine? An important factor to be considered is if the British government will resume printing money, which will lower the value of pound and will affect the British tourists. If the strength of pound rises again, will you still be able to get hold of the all-inclusive holidays if your money is worth more in local restaurants and bars or do you think the local bar and restaurant owners will increase their prices?

If you plan to visit Greece during the summer, putting the country’s economic status into consideration might be beneficial as they can come off of euro. If this is the situation that you are into, you might probably receive inclination on the possibility of such situation happening again and the transition is likely staggered. But bringing extra money might be better in case banking system goes through some changes while it came back to Drachma. If such thing occurs, electronic transfers can be affected however cash economy will remain unaffected while you are on vacation. It might be nicer to just relax and enjoy another drink.

Currency Exchange Tips for Business People

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Currency exchange is a critical part of business operations traversing national boundaries. Even a simple business trip will have to consider the best rate of foreign currency exchange in order to maximize possible returns for a business traveler. The importance of having a reliable foreign exchange becomes even more pronounced when investments or revenues are involved, substantial amounts that are greatly impacted upon when changing currencies. Thus, acquiring the services of money-changing companies for business purposes has to be carefully considered and several factors addressed.

Access to information is one element that should be foremost in searching for currency exchange service provider. The foreign exchange market is information-driven. Rates can change overnight or even in a matter of hours depending on market information that filters in. Matters that affect market conditions can include shifts in government policies, change in leaderships, and even the weather. Such information has to be available at the businessmen’s fingertips. Profits or losses can materialize in a matter of minutes when dealing in foreign currencies.

The computer technology of the service provider is another crucial factor. The type of software used by the currency exchange company, for one, has to be thoroughly examined. Those that have cutting-edge technology would be in a better position to deliver value-for-money services. The world’s foreign exchange markets operate round-the-clock. Money rates fluctuate at various time zones which would often require instantaneous computations that only those with the right technological tools can deliver with timeliness and efficiency.

Comparison shopping comes next for businessmen wanting to avail of the services of a forex firm. All items that a service provider charges have to be scrutinized and a comparison made with the rates of its competitors. Check, for instance, whether a company pays its broker-agents on a commission basis or their brokers derive earnings from the difference between the amount that buyers wish to pay and what sellers aim to charge. Comparison of fees and costs among foreign currency exchange service providers will enable businessmen to discover and avoid hidden charges that can jeopardize profitability, particularly when changing large sums of money from one currency to another.

Customer service too deserves a close scrutiny, and any lip service of a forex service provider in this regard has to be verified or tested. Online reviews are a great source of information along with interviews of past or current customers of the money-changing firm. Naturally, the inclination would be for a company which generates the most positive remarks.

Get The Most Value When Exchanging Bulgarian Currency

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Lev is the currency unit of Bulgaria. Lev is used in daily transactions though it should be noted that since Bulgaria is already a part of European Union, using Euro in currency exchange international or in huge purchases like land or property are quite common.

If your holiday destination is Bulgaria then you need the Lev currency. But the question is where you can have the higher exchange rate for your Chinese Yuan or whatever type of currency unit you have. You would commonly have four choices:

Home Country
Departure Airport
Arrival Airport
Resort in Bulgaria

Let us exclude the three choices from the list. You should not purchase Bulgarian money in your country or airport. The exchange rate at the airport is always terrible. They know that the market is poorly informed and they take advantage of it. There are airports offering rates that are 40% lower compared to the best exchange rate, which shows a very big difference and will badly affect your spending capacity thereby affecting the amount you spend on your vacation or holiday.

This leaves us a single option, which is to purchase Lev currency in Bulgaria aside from Bulgarian airports.

But you will immediately discover that tourist spots have all kinds of establishments offering Bulgarian money. From small exchange booths, to shops, to banks, you will be able to encounter different exchange rates.

Learning to analyze the exchange rate of Lev is important. You must check the buying rate, not the selling rate. Publishing wrong rate is a huge scam.

If you are planning to exchange your money into Bulgarian currency then “buy” rate is what you want. You will need the “sell” rate if you want to exchange your Bulgarian money into your currency unit. If you are planning to go on vacation or spend on something, you should not choose the selling rate.

Some of the unfavorable exchange booth tricks include publishing the “sell” rate instead of “buy” rate. This often makes the rate higher compared to the other exchange rates but you can only benefit from this if you were to sell your Bulgarian currency into own money or currency unit. The “buy” rate is what you will get, which is frequently very low compared to other places and 50% lower than the normal rate.

Therefore, if you want to get the best rate offer when exchanging your money to Bulgarian currency or Lev, “buy” rate is what you must look for.

What Currencies to Take While on Holiday

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With the Eurozone suffering from financial contagion amid ongoing fluctuations in foreign currency exchange rates, holiday trippers are currently in a state of confusion as to when and where they should opt to buy currency online, as well as what kind of notes they should be carrying around while abroad.

Despite the turmoil, travel advisors are still recommending their clients to spend their precious rest and relaxation time at the Greek Islands, as economic conditions has stimulated the rise of numerous price-cut deals that’ll help the country’s visitors get more out of every penny spent.

Experts believe that Greece might switch from euro to drachma, which in turn is causing travelers to hesitate as to what type of cash they should be bringing along. Although in the instance that the nation does switch back to its old currency, there’ll unquestionably be that period of time wherein both euros and drachmas are to be accepted by practically every commercial establishment across the country.

Nevertheless, travelers are still advised to bring a combination of Pounds and Euros in cash, a credit card, and a prepaid card just to stay on the safe side. In the event the Greeks really do go back to the drachma, anyone travelling within the Eurozone is advised to hold onto their pounds, dollars and other currencies as long as they can, as the “country’s exit” will have impacts on the euro.

Experts also advise heading to a foreign currency exchange store and having their currencies changed right before leaving home, or upon arriving at their plotted destinations.

For added convenience, bringing either a credit or debit card along for the trip could prove to be extremely helpful when travelling overseas. These items allow consumers to avail up-to-date exchange rates through the bank. One possible setback here is the charges placed on every transaction, as well as the additional surcharge incurred from the financial institution that owns the ATM.

Those who are skeptical to use credit cards (mainly because of the danger of credit card fraud) using a debit card instead would be a safer alternative.

Carrying the foreign country’s local currency on person is still recommended, as moneychangers abroad may give unfavorable foreign currency exchange rates for customers. Those looking to get more out of their hard-earned cash can either transact with their local banks, or buy currency online.

Currency Exchange for Travel to Venezuela

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Nothing gets any more exciting than traveling to other countries to experience their unique culture, get pampered by their unparalleled hospitality services, or have a blast at their main attractions and entertainment establishments. With that said, Canaima National Park is a popular tourist destination, as its currency has remained relatively lower in comparison to the currencies of many developed countries – other than the fact that it has plenty in store for its visitors!

As of today, the US currency exchange rate is a little more than four times that of the Venezuelan Bolivar, thereby granting people with the green stronger purchasing power. Upon arrival at Canaima’s airport, many travelers choose to have their cash exchanged at the bureau within the compound, as it’s highly recommended by those who’ve been here before.

Tourists are often approached by individuals offering to exchange their money themselves, which in some cases, could be a big mistake. There are some shady characters that either run off with the dough or give forged notes in exchange. These situations could lead to a lot of trouble, especially when tourists use fake bills to pay for their accommodations, who subsequently call the local authorities to fix the problem at hand.

That being said, travelers are advised to deal with legit US currency exchange outlets only, and never with a complete stranger. The only exception to this rule would be if that “stranger” happens to be a trusted friend.

After a vacationist gets his cash converted into the Bolivar currency, the next step would be to find a nice place to stay within the park. Those who frequently visit the mystical little getaway paradise recommend Campamento Ucaima for anyone looking to save money, yet still enjoy the perks of charming local hospitality.

This venue is filled with simple yet affordable rooms which offer great value in return, thereby allowing guests to use their money for more important things, such as food or travel. Moreover, the establishment was founded by the Legendary Rudy Truffino, and is currently operated by his descendants.

Alternatively, vacationers who want VIP-like accommodations during their stay can feel free to head on over to Waku Lodge. Although it’ll be more expensive — but not TOO pricey considering the strength of the US currency exchange rate in relation to Venezuela’s currency — the rooms and service are much better, and it’s said to have exquisite views of the beautiful surrounding scenery.

Spain and Sri Lanka Touted amongst Countries Giving Great Value for Holidays

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More vacationists are taking advantage of the value of their local currencies in the foreign currency exchange market. Some individuals – who either have or buy euros – take their cash and use it for a much needed holiday at a tourist destination that gives them great value in return.

According to the Post Office Worldwide Holiday Costs Barometer, Spain and Sri Lanka are currently ranking in the top spots as the cheapest of 42 destinations.

To put things in perspective, average holiday expenditures in Spain and Sri Lanka were calculated to be half that of the other 21 entries that were included in the list of the most affordable destinations. Moreover, the average total for spending a vacation in these two countries would only amount to one-fourth of a holiday spent in Australia and South Korea.

“The destinations which benefited last year were those where the power of the pound put more money in the pocket or where the price of meals and drinks meant holiday cash stretched further – and often a combination of the two,” says Andrew Brown, Post Office head of travel money.

“We expect to see the same pattern emerging in 2013.”

Regardless of statistics indicating an increase in resort rates in Sri Lanka, the island paradise was still voted as one of the top 10 holiday destinations for 2013. The country is expected to profit from a sterling exchange rate that’s 16 percent higher than a year ago.

“There are growing signs that UK holidaymakers now check the value of sterling and the costs they face in overseas resorts before booking,” says Andrew Brown, Post Office head of travel money.

On the other hand, the Spanish Costas may soon face intense competition in the Eurozone from Greece, as the room rates have dropped by a whopping 40 percent, while rates for resorts have decreased by 18 percent. The decline in expenditures is expected to create larger demand, and more competition for Spain.

The Post Office states that Turkey is starting become more popular amongst travelers as well. Brown explains that the country has rightfully earned its reputation as a destination that offers excellent value in return for money spent.

Regardless of the fact that the U.S. dollar bears no significant dominance over the Turkish Lira in the foreign currency exchange market, the country’s drop in visitors – due to reduced flight capacity from the UK – has prompted resorts, restaurants and bars to lower prices to attract more paying customers.

Affordable Holiday Destinations for 2013

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Spending a vacation at an excessively expensive tourist destination would be counterproductive, as the vacationist would have to work with an unforgivingly low budget that’d prevent him from doing everything he wants to do; or blow all his money and go home broke, thereby causing more financial difficulties and even debt.

More people are starting to work around this issue by opting to buy foreign currency to increase their spending power. Americans and Europeans alike are pinning the value of their local cash against that of foreign money, and spending it the designated countries where they’ll get a longer stretch for every penny spent.

According to the Post Office Worldwide Holiday Costs Barometer – which compares in-resort prices for a shopping basket comprised of eight local items, including beverages, a pack of cigarettes, and a three-course meal for two – Spain has taken the number one spot as the cheapest holiday destination for Brits.

A recent survey indicates that the costs for eating outside at this tourist hotspot have been reduced by 50 percent in comparison to five years ago.

Approximately one-third of the 42 places to visit included in the survey have also witnessed a price drop, as the prices for goods or services sold at restaurants, bars and accommodations have dropped to notably lower levels. Greece serves as a perfect example for the reduction of prices, as the cost for a basket of goodies here have fallen to £57.50, thereby denoting a decrease of 18 percent.

Semi-favorable holiday conditions are noted in Barbados as well, as the barometer basket indicates a 26 percent decrease to £84.24.

For more affordable alternatives, tourists can always plot their vacations at the Czech Republic, Bali and Vietnam, wherein the basket prices are kept at the lower end of the price spectrum at £39.17, £40.47, and £43.20 respectively.

Although Sri Lanka witnessed a 27 percent increase, the island still manages to share the top spot along with Spain, as its weakened currency continues to fair poorly against the foreign money of the majority of countries.

Fluctuations in the currency exchange rates worldwide have made the option to buy foreign currency and spend vacations abroad much more appealing. Those residing in countries wherein their local currency does well against the holiday destinations listed above will be surprised at the significant increase of spending power they get to enjoy during their stay at any of these places.

Xchange of America’s Tips on Saving Money during Holidays

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More people are anxiously planning their holidays as the summer season approaches. According to a representative of the moneychanger xchangeofamerica.com, there are plenty of ways to attain great value out of any vacation, of which the first one is to leverage the currency exchange rate.

Those who regularly exchange money for other currencies will notice how much they can gain in return. The U.S. dollar fairs even better against the currencies of many popular tourist destinations outside the Euro Zone. Northern Cyprus – which uses the Turkish lira – has steadily risen in popularity amongst seasoned American tourists thanks to its extreme affordability.

Second tip is to avoid planning breaks during school holidays, as the flood of students looking to enjoy trips to wherever they can go has the tendency to increase prices for flights, accommodations, restaurants, clubs and other commercial plus entertainment establishments located locally and abroad.

Third tip is to avoid booking at the last minute – although doing so would often mean being charged less in the past, today’s tourism industry has evolved to incorporate finely-tuned discount rates throughout the year.

Fourth tip on the list applies to those heading to European countries – although vacationists might not be able to take advantage of getting a highly favorable spending power considering how well Europe’s currency exchange rate stacks against most currencies across the globe, enjoying a comparatively cheaper holiday near the mountains is still possible.

Chalets and ski resorts – such as The Burgenland in Austria and Grindlewald in Switzerland — drop their accommodation rates as the summer sets in and business starts moving slowly. Moreover, guests staying at the mountains don’t have to worry about uncomfortably hot weather, as the extra altitude keeps the visitors cool throughout the entire day.

Fifth and last tip is to be wary of pricing gimmicks – while travel agencies may put headlines such as “kids ride free!” on their signboards, parents might be surprised that these establishments make up for their loss by jacking up prices for adult tickets.

Amongst all the tips listed here, a vacationist would benefit the most by prioritizing the first, as he or she could drastically increase his or her spending power by leveraging his local currency through the currency exchange rate of other countries.

Before making the move to exchange money at changers, it’s important to ensure that the establishment is legit, and offers fair rates for all customers.

Important Things to Remember While Spending Abroad

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Today’s US currency exchange rate makes it easy for Americans to enjoy larger budgets during their vacations overseas. Vacationists can either choose to have their dollars exchanged at their local moneychangers before departure, or upon arriving at their destination. Any of the these two options is fine, so long as they are sure that the establishment can give the best possible currency exchange rates.

However, whenever traveling to another country, it’s important to keep in mind a few safety tips whenever carrying cash or cards on person in the open public. Although the tourist destination advertised on the Internet may seem like a dream-like island paradise, dwelling into the wrong areas may significantly increase anyone’s chances for getting mugged.

With that said, the first tip is to carry as much cash as needed whenever leaving the hotel. Thieves have trained-eyes that can spot any foreigner lugging around a money belt that’s loaded with cash. Trying to conceal it under the shirt won’t do much good either, as the bulge can easily be spotted from a distance.

Leaving the bulk of cash back at the hotel room is advisable. Keeping it in the room’s safe would be even better, as there’s always that chance thieves coordinate with the room keepers of certain hotels to rob customers upon leaving their rooms.

In the case of credit cards, vacationers are advised to bring the ones they need only. The last thing any vacationist would want to happen is having to make half-a-dozen phone calls to his or her card issuers to cancel the cards before the crooks start racking up fraudulent charges.

Establishments that allow foreign customers to pay using their local currency may have some hidden agenda behind the seemingly convenient option. There’s a possibility that the exchange rate offered by these businesses are highly unfavorable, which means the vacationist would be spending a whole lot more than what he actually has to.

Holiday trippers should keep in mind that planning a holiday takes much more than just leveraging the US currency exchange rate in countries wherein the dollar is strongest. Observing proper safety precautions should be made a priority.

Some areas in these value-friendly countries are teeming with hoodlums that intend to take whatever they can from defenseless and careless tourists, so maintaining a low-profile (e.g. not wearing expensive-looking jewelries, carrying a big pouch of money, etc.) would be in the best interest of the vacationer.