Currency Exchanges Banks and other businesses that offer currency exchange services are used by people who need to convert one type of money into that of a foreign land. For instance, someone traveling from the United States to France will need to find a currency exchanger that will convert U.S. Dollars into Euros.
Money converters make money by charging fees and interest rates. Essentially, they buy cash from you and then sell you foreign currency at a lower rate. This allows the bank to generate a profit simply by trading types of currencies.
The fees associated with a transfer might also vary according to the type of currency exchanged. Someone trading US Dollars for British Pounds will not necessarily pay the exact same rates as someone who needs Euros.
Converters are often located in areas that travelers find convenient. Typically, they establish themselves in banks, airports, and popular markets. These locations make it easier for travelers to use their services, which means they can make more money.
Some of the conversion businesses, however, operate online. Instead of trading physical cash, you transfer money online with a bank account. This can make it easier for you to invest money in foreign markets or purchase items sold outside of your own country.
Since there are many options, it can really pay to compare the rates and fees that each exchanger charges. Although convenience is an important aspect of the business, you also want to make sure that you get as much for your money as possible during the conversion.