In times of turbulence in the foreign exchange markets, it is very important to buy or sell currencies at the lowest cost. In recent days, the market was in a fever and many ran to the coveted exchanger to buy dollars.
Someone is saving their savings, someone has not yet had time to buy currency for vacation. Everyone has their own reasons, I will try to summarize all the familiar ways of buying currency.
1) Exchange offices
This is the most obvious and simple way to exchange rubles for currencies of other countries. But you need to remember that the best exchange rate is not necessarily at the point closest to you. Compare rates in different exchange offices, since in our times of universal Internet, the comparison will take a couple of minutes.
It is worth remembering that when exchanging an amount of 40 thousand rubles or more, you must go through the identification procedure by presenting your passport and filling out a form.
It should be borne in mind that during high volatility, while you get to the exchanger, the rate may change. You can use the reservation of a certain volume and exchange rate.
The main disadvantage of such an exchange is your safety. You enter the exchange office with cash and when leaving you to become an easy victim of scammers. Remember about this. Often, employees of the exchange office are also involved in a fraudulent scheme. The most common methods of deception by exchange office employees:
fraud with the exchange rate, when one rate is displayed on the scoreboard and you are exchanged for other numerous frauds with banknotes: the cashier, when counting money in front of the client’s eyes, imperceptibly “folds” the banknotes and leaves them in the palm of his hand, the money is put into the tray in such a way that one of the banknotes “sticks” to its wall, which is closer to the client, a pack of banknotes “rushes »Into the tray, and some of them fly back to the cashier and so on, there is not enough time to list everything fake bills are put in the bundles
This ancient method has enough disadvantages. Be vigilant and remember that if you left the booth of the exchange office, the operation cannot be returned.
2) Exchange via the Internet bank application
To purchase currency through the Internet bank, you will need to open foreign currency and ruble accounts, some banks require a bank card. Before making a transfer, the bank will demonstrate the exchange rate. The whole operation will take a few minutes. You just need to click a few icons and enter the purchase amount.
The big disadvantage of this method is that the exchange rates in the Internet bank are no longer as favorable as in the exchange office, find out and compare.
- It is safe: you will not be deceived by the cashier and robbers will not lie in wait for you to take a bag of cash.
- Convenient: the online bank works around the clock.
- Fast: no need to go anywhere and stand in line.
- Transparent: the bank informs about commissions in advance. The operations are extremely simple and straightforward.
3) Buy on the exchange
This is not the most popular method in our country, it allows you to buy currency at the most favorable rate. The currency is traded in lots, the price of 1 lot is 1 thousand dollars.
How does it work? You need to have a ruble and foreign currency bank accounts. On the website or in the office of a brokerage company, you open a personal account, replenish it from a ruble bank account. Then you make an exchange transaction – you buy currency at the auction. Moreover, you can buy not only euros or US dollars but also money from other countries, for example, British pounds or Swiss francs. After that, you can withdraw money from your brokerage account to your foreign currency bank account.
There are two modes of transactions – non-delivery and delivery. In the first case, the physical “delivery” of foreign currency by the parties to the transaction is not expected – this method is used by investors who implement arbitrage strategies in various markets, or traders to perform speculative operations. If you need to physically buy real currency, the delivery mode is more suitable. There are two settlement options – T + 0, in which the transaction is settled on the day of its execution, and T + 1, with the settlement on the next day. Both of these modes are suitable for buying currency. To buy a currency, you will need to open a trading terminal and select the desired financial instrument to buy – for example, if you need to buy euros, you will need to purchase the EURRUB_TOD instrument, where the purchase currency is indicated first, then the payment currency,
A much more favorable rate is the exchange rate. The difference between the buying and selling rates on the exchange is always several times less than in exchange offices. But you can only take advantage of this advantage if you buy and sell large amounts.
Preparation required: you need to open a personal account with a brokerage company. To do this, you will have to come to the broker’s office, but sometimes everything can be arranged online. You also need to open a foreign currency bank account to which you will transfer the currency.
You can buy or sell currency on the exchange only in lots. One lot is equal to 1000 dollars. If you want to buy or sell another currency, the lot size is converted at the current rate of this currency to the dollar. That is, for example, 200 dollars cannot be purchased in this way – only one or several thousand.
The broker needs to pay a commission. Be sure to specify how much it will be. For example, the commission for buying and selling currencies can be negligible. But for withdrawing money from a brokerage account to a bank account, they can take, for example, 30-40 euros. Other payments are also possible, for example, for maintaining an account. Your broker should advise you in advance of all commission and payment options and what obligations may be associated with them.
Plus, your bank may require a commission for withdrawing money from a brokerage account, and rather big – for example, 5%. Or offer a free withdrawal of currency, but only after a certain period – say 30 days. All these conditions also need to be clarified in advance.
You will not receive money immediately. Often, trading on the stock exchange is “based on tomorrow”, that is, the transaction is made, the amount is fixed, but the currency is credited to your brokerage account only the next day. In addition, transferring from a broker’s account to a bank account can also take time. How much exactly – ask your broker.