Myths about foreign exchange
Many FX companies offer services with "no commission" or "no charges". Essentially this is trying to imply that customers will get something for nothing...
...if only life was that simple!
All banks charge for making onward payments and any company offering no commission or no charges will simply build this cost into the rate at which the sale currency is converted into the purchase currency.
We are charged by our bankers to make onward payments and pass this cost on. This allows us to focus on offering the most competitive conversion rate. This provides transparency and integrity in the whole process.
Mr. Jones needs to buy €100,000 for a property purchase in France. He is given a rate of 1.48 from a well known FX Bureau. There are "No Charges or Commissions" and Mr. Jones is required to pay £67,567.57 to buy the €'s.VFX charge £15 to make the foreign transfer, but offer a rate of 1.4850 to buy the €'s. This means that Mr. Jones will pay £67,340.07 to buy the €'s and a further £15 payment charge. This means that Mr. Jones will save £212.50 if he uses VFX. This shows you that "No Commission" or "No Charges" is normally more expensive!