Exchaning euros to sterling

Optimus

Hey again,
Do I just bring along my cash (about 1500 yoyos) to the bureu de change in the airport and get it changed to sterling?
Is there a fee for exchanging the cash? How much would it be?

Ruu_Old

Yeah bring it along but I would change it at your local bank, perhaps you might get a better exchange rate than at the airport.

Optimus

Not actually part of a bank, unless the EBS do it?
How could i work out the exchange rate?

kensutz

You'll get probably less than £1000. http://xe.com/ucc to check exchange rates

Optimus

kensutz wrote:

You'll get probably less than £1000. http://xe.com/ucc to check exchange rates

1015 pounds.
Do i get charged for converting the money though?

Hitchhiker's Guide to...

if you are a student you don't get charged by the bank to change it. (maybe you know a student who could change it for you?)

definitely don't change it in the airport - you get charged a bit more there as it is usually a "have to have it" place for changing money and the prices reflect this.

Optimus

Im a student but I dont know how i could prove this.

Can i go into any bank and get it changed even though i dont hold an account?

kensutz

You'll have to pay a certain amount of commission, what about a Credit Union?

Optimus

kensutz wrote:

You'll have to pay a certain amount of commission, what about a Credit Union?

Any rough idea on what the commision might be?
I mean am i gonna be paying a 100euro or something like that?

kensutz

1% to 3% depending on where. Could be more.

Optimus

So im looking at around 50 euro, thats not so bad then.

ircoha

:eek: :eek: They dont Charge Commission: Yippee
:eek: :eek:

---

In relation to the above, I think a little primer in currency trading is in order. As I am new to the site, forgive me if I am preaching to the converted.

there are two prices or rates in any FX transaction, the buy price or bid rate and the sell price or offer rate and the difference is called the bid offer spread.

You buy at the bid and sell at the offer.

When u see an exchage rate in the paper it is generally the mid-market price, or the average of the bid and offer

The following is from
http://www.actionforex.com/financial...d_20041204334/


[[The bid/offer spread is the difference between the buying (bid) and selling (offer) price of the same stock or currency transaction.

In other words if the exchange rate between South African Rand (ZAR) and US Dollars (USD) was ZAR 6.50 = USD 1.00 and you wanted to sell ZAR and buy USD you would have to sell ZAR 6.55 to buy USD 1.00, at the same time if you wanted to buy ZAR for USD you would be able to buy ZAR 6.45 for USD 1.00.

Both these transactions have a spread of ZAR 0.05 (5 cents) difference from the exchange rate and the rate which you will be given for your transaction.

It would follow that the spread between the bid and offer prices would be ZAR 0.10 (10 cents).]]

The point I am trying to make here is that if the bid offer spread is wide enough, the person buying the STG as the OP is, can be stuffed on the spread, pay no commission and think he is getting a good deal, because no commission, yippee!!.

Lets try an example:

Assume mid-market EURO/STG is 0.6666 today or each €150 gets £100.

Now I see 2 offers for buying my € for £
the first is We sell STG at 0.6452 and no commission
the second We sell STG at 0.6896 + 5 % commission

0.6452 is equal to €155 for 100stg
0.6896 is equal to €145 for 100stg and the 5% commission brings it up to €152.25, which is still better than the no commission deal.

I hope this helps.

Optimus

ircoha wrote:

I hope this helps.

Ill be honest and say ..no:o
While all that is probably very heplful to someone who understands that kind of economic terms, im just taking a trip to england and want to change some money over.:o
I appreciate the long detailed answer..but

Basically, im not a member of a bank, im a member of the EBS building society.. I want to change my 1500 euro spending money to sterling and Id like to know where I go and how much i have to pay to do it:) .

ircoha

Optimus wrote:

Ill be honest and say ..no:o
While all that is probably very heplful to someone who understands that kind of economic terms, im just taking a trip to england and want to change some money over.:o
I appreciate the long detailed answer..but

Basically, im not a member of a bank, im a member of the EBS building society.. I want to change my 1500 euro spending money to sterling and Id like to know where I go and how much i have to pay to do it:) .

Pity about that, it got rave reviews elsewhere.