Currency Exchange Provider
A currency exchange provider is a specialist service that allows you to send funds internationally, by converting money from one currency into another and then sending it on to the beneficiary.
Currency exchange providers typically offer much better rates than your bank for sending and receiving money, meaning that the beneficiary will receive more than if you had sent money directly via your bank’s service. Currency exchange providers make money from a variety of fees, mainly on an “Exchange Rate Margin” although some do charge commissions or fixed fees. In any event, even with the fees, you will typically save around 5% of the transaction amount than if you had transferred money via a bank.
You will need an account to send money with most currency exchange providers. These accounts are quick and easy to set up online, although you will likely need photographic identification and a proof of address. Once you have an account, provided you have your beneficiary’s details and a way to fund the transfer, they can have access to funds very quickly — sometimes in less than a day.
Note that exchange rates and fees do change all the time, so for the best value for money, we have a complete comparison service that sorts the best currency exchange providers based on currency, amount you want to transfer and several other factors. We also provide in-depth reviews for over 350 currency exchange providers.
Currency Exchange Provider — Related Terms
A currency exchange provider is also known as a money transfer service.
Money Transfer Glossary
When it comes to exchanging money, paying for your transfer, understanding exchange rates and more, it’s important to understand what all the details mean. But don't worry. We’ve got you covered with our complete Monito glossary and guide to the most frequent terms you’ll come across when you send or receive money internationally.