How to get the best rates and avoid fees

Comparing exchange rates

In most cases, non-bank providers offer significantly better exchange rates than the banks. There are some traps when comparing exchange rates that are outlined in the next section.

The interbank rate is also known as the wholesale rate with the aim being to get as close to that rate as possible when you book your international money transfer at the customer rate. The difference between these two rates, the margin, is how foreign exchange providers make their money. If possible, negotiate a fixed margin or number of ‘points’ away from the interbank rate to ensure a consistent level of pricing for your transfers.

Given exchange rate prices are constantly moving the key point is to compare rates at the same time to not only ensure you are getting a genuine quote but that the rates you are comparing are “like for like”.


Depending on the provider business and private customers can be charged a wide variety of fees when they transfer funds. The main two are transfer fees, charged by the forex provider or bank at the beginning of the transfer. And receiving bank fees, which can be deducted when the funds arrive at the destination account.
Subject to the amount being transferred the savings on the exchange rate can far outweigh the cost of the fees. So it’s important to compare the “total cost” of the transfer that includes both of these fees and the exchange rate when transferring funds.

NZForex is a foreign exchange company which helps thousands of clients with their international payments every year. In essence offering sharper exchange rates than the high street banks and have lower transfer fees. The service is simple to use with 24 hour online access and 24 hour support through a phone based dedicated dealing desk.