Google and many other sites I have went to have the same conversion rates of around 1.26 US dollars to the EUR today.

When I went to my bank to make a wire transfer of funds and get Euros for my upcoming trip, they are using a conversion rate of 1.34 dollars to a EUR.

That is a significant difference, 6.34 percent to be exact... Or about an 800 dollar difference in the cost of the trip.

Can any provide details on this... It is frustrating because I don't fully understand, but what can I do?

Thanks!!!

Each bank/institution has a rate that they buy and sell at.
They always make money!
Welcome to the market.

Next time you can try and shop around. But small amounts will not get you the best exchange rates.

Good luck on your trip.

Watch the exchange rates for a few months before you go as they can fluctuate by more than the 6%,
then when it starts to move in a favourable way, at some point jump in and change some or all of your money.

Now of course it could go further in your favour as well as the other way and that is a risk you take.

But by watching over a period of time, at least you give yourself the chance of buying when it is right for you.

Other than that, as the above poster says, the banks always make money !!!

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There is always going to be a spread. As everyone says, the bank always makes money.

I have not tried this yet, but if you have an Amex Platinum Card, I believe you can avoid the wire charge (which I have paid from $30 to $60) and I believe you may get a better exchange rate.

I always get a better rate when using a card as compared to exchanging currency.

quote:

Originally posted by Bob Bixby:
Google and many other sites I have went to have the same conversion rates of around 1.26 US dollars to the EUR today.

When I went to my bank to make a wire transfer of funds and get Euros for my upcoming trip, they are using a conversion rate of 1.34 dollars to a EUR.

That is a significant difference, 6.34 percent to be exact... Or about an 800 dollar difference in the cost of the trip.

Can any provide details on this... It is frustrating because I don't fully understand, but what can I do?

Thanks!!!

I don't know if it is still available, but a guy on a coin site I frequent recently came back from Europe with 10,000 Euros or so in cash that he wanted to trade for dollars. If you're interested in dealing in cash, I'll send you a link. I'm not posting it now because it will take a bit of digging. To be clear, I don't know this guy so care would be required.

That's an excessive mark-up. Foreign banks (banks at your destination) usually do a little better, so you might consider that.

If you are sending a deposit or pre-payment, ask your payee to accept dollars and let him be responsible for the exchange difference. His foreign bank will likely not charge him nearly as much as your American bank will charge you.

Most credit cards used to exchange at par. As with everything else, most now charge a mark-up. Check with your CC company (or all of your CC companies) on their policy. It may be less expensive to pay via CC than to exchange and wire.

I had to check with my buddy in NY before I posted this. He/we wire hundreds of thousands of dollars to Euros overseas to pay for auction purchases.

Ok, IF it will work, here is likely going to be your absolute best deal if they will do business with you. Since Homeland Security now has all kinds of "know your customer rules", you will likely have to fill out quite a bit of paperwork for them to transfer funds for you.

My buddy does not use this firm anymore. He uses another which doesn't deal with the public. That said, his costs to wire funds was less than 1/2 percent the last time he used them.

Worth trying