How The CurrencyFair Marketplace Works
Why Use The Exchange?Our goal here at CurrencyFair is to save you money on every currency exchange that you do. We do this by matching your funds with other customers like you who are looking to exchange in the opposite direction. If you are in a hurry you can use our “Create an Auto-Transaction” feature, which will exchange your funds immediately at the best rate currently available on our system – on average 0.4% of the interbank rate. If you do not require your money to be exchanged instantly, you can use the Exchange to try and get a slightly better exchange rate than is currently available via the Create an Auto-Transaction option. You are not guaranteed to get a better rate, that all depends on how aggressively you choose your exchange rate, but you can always change your mind at any time and Create an Auto-Transaction exchange your money instantly. In this post we will explain the benefits of using the Exchange, how it works and how to give yourself the best chance of exchanging your money at a better rate. We’ve previously discussed how to beat the interbank rate – and as you can see below, around 20% of CurrencyFair customers who use the Exchange end up with rates better than the quoted interbank.
Overview Of The ExchangeWhat is the Exchange? Simply put, the Exchange is CurrencyFair.
The Exchange = CurrencyFairCurrencyFair is a marketplace for currency exchange, and the Exchange is where all of the money currently within CurrencyFair is and where every exchange takes place. “Create an Auto-Transaction” trades take place on the Exchange! A quick look at the image below and you will see the Exchange in action. In the centre of the screen you will see a line highlighted in blue with the tag, “Best Available Now”, this is the best rate you can get on our system if you were to exchange your funds right now. Quick Note: This is the rate you would get if you use the “Auto-Transaction” exchange option, it is also the rate that is quoted when you use the calculator on our homepage. If you were to Create an Auto-Transaction, our system would match your money off with the funds available on the Exchange at the best available rate (dark blue), if there is not enough money available at the best available rate, it will take all of that money and then as much as necessary from the next best available rate, and so on. For example, on the Exchange below, if you were to exchange £2000 to euros at this moment, you would get it at the rate of 1.3629, giving you €2725.80 However, if you wanted to “Auto-Transaction” £3000 to euros, there would not be enough money at the best available rate to satisfy this exchange, so you would exchange £2,187.72 at 1.3629, giving you €2981.64, and the rest of the £3000 (£812,28) would be matched at the next best available rate, which is 1.3627, giving you €1106.89 for a total exchange of £3000 >> €4088.53. The overall rate for this exchange would be 1.362843. When using the rate calculator on our homepage this is worked out automatically and instantly by our system. The Exchange is essentially a queue for a better rate. In the example below you will see we are looking at the GBP>EUR Exchange, the different rates and sums listed above the “Best Available Now” line are other CurrencyFair customers looking to achieve a better rate the same as us. Once you place an order you will be entered into that queue and your funds will automatically be exchanged if/when the market moves in your favour.
- 1. Here is where the send currency is selected. 2. If you have a certain amount of money that you want to send, enter that figure here. 3. If you have a certain amount of money that you want to receive, enter that figure here. 4. Here is where the receive currency is selected. 5. The rate can be adjusted here, prior to placing the order. 6. This shows your available funds in each currency of the Exchange you are viewing. 7. You can save your most used markets to allow for easy access. 8. See 1. 9. Pressing this button will show the opposite currency pairing, for example, clicking the button in the picture above would switch the market from GBP>>EUR to EUR>>GBP. 10. This either shows “+” or “-“. It is used to add/remove a market from your saved markets (see 7). 11. This button refreshes the Exchange (the Exchange will automatically update itself periodically as well). 12. See 4. 13. This is the Exchange, where all the money for the GBP/EUR market is. The money from “Best Available Now” down (inclusive) (the lines in blue), is all of the euros currently on the GBP/EUR market. The money from “Better Requested” up (inclusive) (the lines in orange), is all of the pounds currently on the GBP/EUR market. If you were to press the button in 9. so that you were looking at the Exchange for EUR>>GBP instead, all of these amounts would flip over, so the “Better Requested” pounds would now be shown on the EUR>>GBP Exchange as the “Best Available Now” euros, etc. 14. Clicking on this button expands the market to show all available funds. 15. Here you can view all of your orders that are currently on the Exchange, and also any recent orders.