# From where to get foreign currency exchange in Melbourne



## jovi (Jul 28, 2009)

Hi,

While searching on exchange rates offered by Commercial banks in Australia and foreign exchange companies, found the big differences in rates. Now I wonder where to go for currency conversion in Melbourne city. 

2nd part of question is reverse of this question, where to go to remit the money back in homeland country, Banks or Exchange companies like money gram(their swift charges are very low as compare to banks, don't know why).

Thanks!


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## twister292 (Mar 25, 2011)

It depends on the type of transfer and amount. Banks will generally offer better exchange rates, but charge more to actually transfer the money. Western Union or Moneygram have slightly higher exchange rate but lower transfer fees.

For relatively moderate amounts, moneygram/western union work well, but they pay cash at the other end. Account-to-account transfers will need TTs through banks.


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## naoto (Jan 8, 2012)

Banks charge circa $20 for a transfer account to account. Which works out cheaper if you use their exchange rates (depends on the amount)


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## jovi (Jul 28, 2009)

twister292 said:


> It depends on the type of transfer and amount. Banks will generally offer better exchange rates, but charge more to actually transfer the money. Western Union or Moneygram have slightly higher exchange rate but lower transfer fees.
> 
> For relatively moderate amounts, moneygram/western union work well, but they pay cash at the other end. Account-to-account transfers will need TTs through banks.


I have got the rate of 1US$=0.9353 on westpac site, whereas Mid Market rate is 1US$=0.9691, so net difference of 3.38$ (though its difficult to get rate closer to Mid marker rate).

So I think Banks rates are not better as compare to Forex exchange companies. 
Can anyone share his experience of converting foreign currency in Melbourne, which exchange company is good?


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## shafaqat309 (Apr 7, 2009)

twister292 said:


> It depends on the type of transfer and amount. Banks will generally offer better exchange rates, but charge more to actually transfer the money. Western Union or Moneygram have slightly higher exchange rate but lower transfer fees.
> 
> For relatively moderate amounts, moneygram/western union work well, but they pay cash at the other end. Account-to-account transfers will need TTs through banks.


i have heard faysal bank has some agreement with Western Union and they transfer amount direct to faysal account. but need to confirm.


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## jovi (Jul 28, 2009)

shafaqat309 said:


> i have heard faysal bank has some agreement with Western Union and they transfer amount direct to faysal account. but need to confirm.


Different international companies like Western union, money gram etc have agreements with different banks, like MCB has with money gram whereas National bank has with WU.

You can confirm with your corresponding bank with which forex company they have got agreement.


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## twister292 (Mar 25, 2011)

jovi said:


> I have got the rate of 1US$=0.9353 on westpac site, whereas Mid Market rate is 1US$=0.9691, so net difference of 3.38$ (though its difficult to get rate closer to Mid marker rate).
> 
> So I think Banks rates are not better as compare to Forex exchange companies.
> Can anyone share his experience of converting foreign currency in Melbourne, which exchange company is good?


If you are bringing _physical cash_ into the country, anyone will clobber you. Nobody will match mid-market rates for cash, and don't be surprised to see spreads of up to 5 cents from the MMR for cash.

In fact, if that 3.38 cents of spread is for physical cash, that is fairly normal. 

If you bring notes to a bank, most will also charge you a 2% commission to change them. End-result will be absolutely crap exchange rate.


Try carrying a draft with you, denominated in AUD if possible. That way, you will be subjected to the exchange rate only once, and drafts will get better rates than cash. 

Carrying a lot of cash is in itself risky, and to top it up, carrying notes of a foreign currency will get you hammered when exchanging them to AUD as well.

Banks wont necessarily give you a good rate for relatively smaller amounts...I would be more concerned with the fact that the steep transfer fee (ranging from $20 for online ordered TTs up to $35 for some banks if you do a walk-in branch-assisted TT)

With banks, you would only have a significant advantage with rates if you are sending a large enough amount to cover both the cost of transmission _and_ get a better exchange rate. Needless to say, to get a bank on the negotiating table, you would need to be talking at least $50,000 or so (transactions that get handled by treasury rather than retail).

However, bank transfers are the most secure form of money remittance, and are traceable, and in some cases reversible as well.


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## hari999999 (Mar 17, 2009)

jovi said:


> Hi,
> 
> While searching on exchange rates offered by Commercial banks in Australia and foreign exchange companies, found the big differences in rates. Now I wonder where to go for currency conversion in Melbourne city.
> 
> ...


We are using UAE EXCHANGE to convert our currency and also to send cash at home
Thankyou.


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