30 Jun 2022
Is it important to consider what day of the week you exchange your money? What if you could get a better rate by exchanging your money on a specific day?
Migration to foreign countries to seek better education and job opportunities is nothing new. Roughly 56.8 million expatriates live in different countries, according to recent estimates. Currency conversion for making an international money transfer is one of the major concerns for these diasporas to ensure their beneficiaries receive the desired amount.
The ideal time for currency trade fluctuates depending on various circumstances. The hours of forex trading are not the same as regular business hours. Instead, they're based on separate time zones and different locations.
Understanding the market can assist in determining the best time to convert currencies and developing a profitable schedule. Keep reading to find valuable information on how you can decide the best day for currency conversion.
Remittances play a significant role in improving the economy and quality of life for millions in developing countries. According to the recent statistics by the World Bank, global remittances are expected to hit the notch of $630 billion in 2022 in low to middle-income countries. Such an immense rise in remittance inflows indicates that more and more people find working abroad the best option to support their financial needs back home.
New York is the world's second-largest FX trading platform. The trade market is open from 8:00 a.m. to 5:00 p.m. EST and is widely watched by overseas investors because the US dollar is used in about 90% of trading. Changes in the New York Stock Exchange can immediately impact the dollar's value.
The trading hours in Sydney are 5:00 p.m. to 2:00 a.m. EST. Although it is the smallest of the four mega-markets, it sees a lot of activity when it opens because it is where the trading day officially begins.
The Tokyo Stock Exchange is open from 7:00 p.m. until 4:00 a.m. EST. Most Asian trades are performed through Tokyo, with the currency pairs USD/JPY, GBP/CHF, and GBP/JPY. Because of the Bank of Japan's market power, the USD/JPY is particularly worthy of attention while the Tokyo market is open and others are not.
Trading hours in London are from 3:00 a.m. to 12:00 p.m. EST. London controls approximately 40% of global trade and, as a result, has a significant impact on currency movements. Forex trends typically start in London, which is something to keep in mind when deciding what time of day to trade money.
There are situations when trading is preferable. It is often best to trade when the market is most active. When many markets are open simultaneously, currency pair volatility is likely to be higher.
Currency pairs are more stable while only one market is open, making it an excellent time to exchange the currency at a favourable rate. Other markets opening can create a lot of volatility, especially if it coincides with important news.
It is best to execute currency exchange during the overlaps in trading times between the major markets. When many markets are active together, price ranges are more comprehensive, giving traders a greater edge.
Foreign exchange rates are often unpredictable, making it difficult to choose the best time for your next funds transfer. Another layer of complexity is the plethora of options available to you, including your bank, established operators, remittance startups and companies, and multi-currency bank accounts.
It would be good if there were a way to keep track of the ever-changing remittance landscape automatically. Signing up with ACE Money Transfer for the daily rate alert or the best exchange rates conversion is one option to avoid manually searching and comparing different providers.
For people who want to send money online to any country, there are some valuable recommendations to make the foreign currency exchange easier, more efficient, and practical.
Money changing stations in airports offer substantially higher charges than money changers and banks outside the Airport.
Airport money changers charge extra because of their high operational costs, such as expensive monthly rent and extended operating hours.
If you need money for transportation when you arrive in your overseas destination country, you can exchange some cash for urgent use. You may later find a reliable money transfer firm that provides the best exchange rates with reasonable charges.
While looking for decent forex deals, you may find one that appears to have "too good to be true" rates. And its offer may be just that, especially if the money transfer service provider seems sketchy and you've heard awful things about it.
Use your common sense and avoid such money transfer firms. Check out ACE Money Transfer if you want to ensure a financial company is safe, secure, and trustworthy for your international money transfers.
Businesses that deal in foreign currency make money by selling foreign currencies at a significantly higher rate. Aside from that, they make money by charging a commission to customers. Before you exchange your money, inquire if the shop charges such a fee. Try somewhere else if they charge a commission. You can always find a commission-free money converter online to ensure your beneficiaries will get the most of the funds you transfer.
The exchange rate at a certain level does not indicate that all of the country's money changers would match that rate. Look around for the best exchange rates before exchanging your money. You'll be able to get the most out of your foreign cash this way.
Keep an eye on exchange rates, especially if you plan to spend a significant amount of time in a foreign country. Even a minor change can result in a few dollars saved here and there.
Make checking the exchange rate once a day or once a week a habit. Then, when you notice that the exchange rate has improved, take advantage of it, and choose the best way to send money internationally to your loved ones. You can also check the exchange rate on your smartphone using the interactive and easy-to-use ACE Money Transfer mobile app.