Here is the first episode of our expert interviews about financial subjects. The idea is to speak about exchange rates. As there are more than 220 million people living abroad there is potentially a big interest for this boring subject. However we might find refreshing points so that it doesn’t remain boring anymore. Here is Heather Weaver’s interview, she is managing director at Finance Money Transfer Experts Ltd.
The information source of exchange rates: to be compared?
YES. There are many different sources of exchange rates. We know about Google exchange rates and there is also Yahoo (Yahoo Finance), Xe, Oanda, Reuters, neomy, openexchangerates, etc… All of them are good exchange rate sources. However they all differ slightly. Xe has just been acquired by a money transfer website so there are opportunistic reasons for them to feature a non-official exchange rate so that people might not know that there are being screwed because of the amount of hidden fees applied…
Anyway, the reason why we have to compare exchange rates is because whichever currency we take a look at such as EUR, USD, CNY, RUB, GBP or SAR, there are always differences between sources of information.
The provider of exchange rates: to be compared?
YES. Definitely. It’s probably the most important by the way. There are hidden fees applied by the money transfer operators. The hidden fees are fees that we don’t see obviously because there are hidden in the exchange rates. That’s why it’s good to compare the exchange rates offered by providers. Especially money transfer providers.
The graphs of exchange rates: to be compared?
YES. You need to compare the graphs because you know in finance it’s possible to make the financial KPIs talk even when there is nothing to say. Indeed an exchange rate graph based on 3 months is going to be different than one based on 2 years. Same for 3 days. People or organizations showing exchange rate graphs have to be considered liars before you trust them. So be careful cuz sometimes they want you to do something.
Yes we should compare exchange rates sources, yes we should compare exchange rates providers, and yes we should compare exchange rates graphs. Those comparisons are needed because there is a lot of money at stake.