You will need the services of currency exchange providers when you are changing one currency to another, say when traveling outside your home country. Although you can rely on banks to exchange your money, there are other service providers, such as currency exchange offices.
Adherence to Law and Regulations
It would be advisable to check if the service provider complies with the local laws and is regulated by the relevant authority. Usually, a provider would indicate clearly on their print communication and website that they comply with the applicable legislation and the body that govern them. The essence of checking on compliance and regulation is to protect yourself from fraud and other malpractices.
Although all the currency exchanges provide the same core service, there may be differentiation in terms of other services provided. The extra services could be reflected in the difference in exchange rates and fees.
Some of the additional services include the option to buy currencies with cash or credit card. For those that allow card payment, the banking network’s transaction fees are added to the rate. As a result, their rates will reflect that extra fee.
Choosing the denominations in which you will get the currency is another extra service. Some providers do not offer the option and provide currency in large denominations, which are difficult to use. Since large denominations are easy to handle, count, and transport, the exchanges that propose to customers to choose denominations may charge an extra fee for it.
Exchange Rates and Fees
The exchange rates of different providers differ due to competition. It is therefore wise to check the rates and other fees in advance. You must also be cautious because there are providers who advertise very impressive rates to attract clients but add their margins and charges at the time of closing transactions. It would be better to ask for a quotation in advance and get clarification if there are extra charges.
The Location of the Provider
The money changers in airports are far more expensive than those in the cities. This is because of the high rent in airports and the high demand for currencies, among other factors.
On the other hand, several currency exchanges in one location,like a street, tend to offer better rates. Their rates are also almost uniform for the same currency due to competition. However, they try to differentiate on other factors.