The Best Place to Buy or Sell US Dollars in Burnaby
Common Reasons for Currency Conversion
There are many reasons an individual/business would consider changing currency. Broadly speaking, these can be classified by the amount of money said party is interested in exchanging. The justification for size-based segregation lies in the reasons for conversion. Larger exchange transactions are often done for similar reasons, while the same is true for smaller transactions.
A transaction of over $5,000 in size is classified as a large transaction. Generally, large transactions are done to facilitate a large international interest, such as a major purchase. This is true for both individuals and businesses.
Some sample reasons for conducting a large currency exchange transaction include:
- The repatriation of earnings made in a foreign currency
- The purchase of property abroad
- Purchasing a car abroad
- Converting the estate of a diseased relative who lived abroad
- Exchanging money to cover expenses incurred in a different country
- Purchasing a boat abroad
- Paying tuition to attend school in a different country
This list is by no means exhaustive, as there is any number of reasons for requiring a sizeable currency exchange.
Transactions where less than $5,000 is exchanged are classified as small currency exchange transactions. Small currency exchange transactions are commonplace, as they are a mainstay for any international vacation. Transactions of this size are more commonly associated with leisure than business.
A sample of reasons to conduct a small currency exchange transaction includes:
- A cross-border shopping trip
- Spending money for a vacation
- Gift giving to foreign relatives
When you’re choosing where to conduct your exchange transaction, the size of your transaction will heavily dictate how you weight the criteria. If you’re looking to make a large transaction, the exchange rate should factor heavily into your decision-making criteria. On large sums, even small differences in exchange rates can lead to substantial savings in nominal terms. Savings of 1% can often save you hundreds if not thousands of dollars.
For smaller currency transactions, convenience will be one of your more important decision-making criterions. On smaller amounts, differences in exchange rate become less important, and convenience can be weighed more heavily. Remember that your time is valuable, so choosing the closest option to you for small transactions could be worth it, even if the rates are slightly higher.
Large Currency Transactions (Above $5,000)
When you decide how much currency you are looking to exchange, you can begin to evaluate your options for where to conduct the transaction. You should certainly be very concerned with the exchange rate you receive for your transaction. For transactions of a large amount, like you wish to do, small changes in exchange rates can save you significant amounts of money. A 2% difference in exchange rates will save you $100 on a $5,000 transaction, $1,000 on a $50,000 transaction, and $10,000 on a $500,000 transaction.
If you’re not looking to deal in physical cash, you should be sure to consider using Knightsbridge Foreign Exchange. They call the banks every morning to ensure their rates are better, as you can see in the aforementioned chart. You can visit their website at www.knightsbridgefx.com, or you can give them a call for a no-obligation exchange rate quote at 416-479-0834, or 1-877-355-5239. They will be your cheapest option to buy or sell US dollars.
Small Currency Transactions (Below $5,000)
If you’re going on vacation abroad, and are just looking for a small amount of money to spend in your destination, you’re looking to do a small currency transaction. For small amounts of money, using your bank to do the conversion is perfectly reasonable, as the difference in rates is less pervasive for smaller currency amounts. You should factor in convenience to your decision, as having to travel to a far location imposes a cost on you.