Which broker offers the best currency rates online

The perennial question! When we are shopping for foreign currency, the internet does give us a lot more freedom to shop around. Whereas we used to rely on the banks and travel agents to change our money there are now a whole host of reputable and competitive companies who offer this service. A quick search on the internet for a currency broker will bring up several companies for you to choose from.

Check the daily interbank rate as a comparison – this is the rate that banks exchange currency with each other, so you should aim for as close as possible to the interbank rate as you can.

Some companies have a tiered exchange rate list depending on volume, so it may pay you to change just that little bit more if it means getting a much more competitive deal. Other companies have a flat minimum transaction amount.

You should also check the types of transaction that they accept – the most competitive ones may only deal with bank accounts and not with credit cards. If they do accept credit cards check whether there is an extra fee to do so.

As well as checking the competitiveness of the exchange rate, check whether the company charges a transaction fee. With all online currency traders, check that they are FSA regulated. Also, make sure you read the fine print of any transaction.