According to OFX, Spot rates are the current exchange rates at which specific currencies can be bought or sold on currency exchange markets. Spot rates fluctuate by the second. It’s also known as the ‘interbank’, ‘wholesale’, ‘mid-market’ or ‘live’ rate. It’s also the rate that S Money offers for foreign currency in Australia.
Great question! Why don’t all banks, money changers, travel cards and money transfer services just offer the rate you can see online? Well, they offer a different rate to make money. The difference between your rate and the rate you see online is a hidden margin and can add up.
Ordering foreign currency online is generally more cost-effective. Money changers with a retail store have to pay for rent, staff, and insurance, with you covering the cost of these additional third-party charges. Online money changers don’t have these large costs, making it easier to provide better exchange rates and lower fees when you send money. Some stores may also have limited currency availability.
In most cases, it is cheaper to buy your foreign currency at home in Australia before you head overseas, but there are some important exceptions. It’s cheaper to convert Australian dollars into foreign currency if you are travelling to Singapore, Bali, Thailand or Hong Kong.
Unlike booking flights, there is no ‘best day to buy’. Movement in foreign exchange rates depends on the global demand and supply of goods and services, as well as political and economic factors.
No, you should not send money through your bank. Compared to OFX, local banks typically have more expensive rates and transfer fees. This is because they pass on the cost of using a physical storefront to you. You will also be charged with a ‘lazy tax’. This is when you don’t know or can’t be bothered to look around for a better cost. The rates offered by banks for foreign currency are closer to the exchange rates listed by the RBA than the rate on Google.
Like all reputable money exchanges, we are registered with AUSTRAC and regulated by the Australian Securities and Investment Commission (ASIC).
S Money complies with the relevant laws pertaining to privacy, anti-money laundering and counter-terrorism finance. This means you are required to provide I.D. when you place an order. It also means the order must be paid for by the same person ordering the currency and you must show your identification again when receiving your order.
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