Foreign exchange transactions - or Forex - are difficult for a number of SMEs to understand.
When you buy or sell currency, you will pay several commissions: the exchange spread , the exchange commission and the transfer fees.
The exchange spread is the difference between the market rate for buying dollars at a given moment and the rate communicated to you by your partner, i.e. the rate at which you will actually buy the dollars.
If the market rate is 1.20, this means that for every €1 sold you will buy $1.20. Your partner will give you a more expensive rate , for example 1.19. On each € sold, your partner's margin is $0.01... At first sight, this is not much... but let's do the calculation on €1,000,000: this represents a margin of $10,000 for your partner.
Add to this a commission for carrying out the operation of 0.5% for example, as well as the transfer fees, and the cost of your transaction will skyrocket!
At Keewe, we don't apply any exchange commission and the spread is negotiated with you, in full transparency.
No more bad surprises!