How does a bureau de change make money?

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peoffrey

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I'm probably missing something obvious here but how does a bureau de change make money? I travel a lot now and need currency but when you see them advertise 0% Commission 0% Charges etc... What's actually in it for them? I tend to use them as my bank charges each time I withdraw overseas.
 
You normally get a lower rate from a BDC as they buy low and sell high thus making their money from the difference they pay for the money and what they sell it for.
 
Offering a shitty selling rate compared to a buying rate. It amuses me when the sellers of foreign currency advertise 'no commission'! The commission has been factored into the selling price!! i only buy euros these days but the place I buy them from has nearly an 18% mark up between flogging a euro and buying it back. I always keep mine till I've spent 'em!!
 
The rate they offer is shite as they take a huge margin rather than commission.

So the rate may be £1 = $1.30 on the exchange.

The BDC May then off you £1 = $1.22 so they make 8 cents on every £1 you change.
 
By fucking you over and pocketing the difference between the interbank exchange rate they get and the crap exchange rate they give you.

Get a Halifax clarity card.
Use it abroad at an ATM to get cash out.
Even though you will pay a small amount of interest until you pay off the card at the end of the month it is more than made up for by giving you the interbank rate.

Or open a Starling account and use your debit card to withdraw money abroad. It doesn’t cost anything.
 
denislawsbackheel said:
By fucking you over and pocketing the difference between the interbank exchange rate they get and the crap exchange rate they give you.
Get a Halifax clarity card.
Use it abroad at an ATM to get cash out.
Even though you will pay a small amount of interest until you pay off the card at the end of the month it is more than made up for by giving you the interbank rate.

Or open a Starling account and use your debit card to withdraw money abroad. It doesn’t cost anything.
Click to expand...

Most times the cashier in the actual bank itself can't better the rates of the atm in said bank.
 
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