At the Forex Group we periodically like to share answers to some of the frequently asked questions we encounter.
Here are some of those that have come in recently.
What are ‘currency pairs’?
This is something of a wholesale Forex marketplace term and isn’t one that most customers normally have to bother with.
It basically relates to the fact that historically the foreign exchange marketplaces traded currencies in paired relationships with each other. Some are called “the majors” and include those currencies that have long been traded against each other and which are considered globally important - for example the U.S. Dollar and Pound Sterling is one such pair.
This term isn’t really one you will need to worry about,though we’ll be only too happy to say more if you’re really interested.
Under what circumstances should I hold off making a currency conversion?
Unless you are a specialist in foreign exchange dealing, you are unlikely to be able to make this type of call with any degree of certainty.
The best thing to do is simply to talk to us and we will give you advice on the most effective strategy for your conversion at a given time.
Won’t the banks offer better conversion rates because of their size?
The ability of a foreign exchange provider to obtain the best rates is not linked exclusively to the size of the organization orthe number of deals they conduct in the markets.
What is important is their expertise and understanding of how to get the best return out of those same markets.
Paradoxically perhaps, the very large size of the banks and their generalist nature often make them less well-equipped to adopt specialist positions in the markets and to obtain the best prices as a result.
We are always confident of being able to beat the banks on foreign currency exchange rates. Why not let us prove that to you?