CurrencyFair could offer great foreign currency exchange rates

Finding good foreign currency exchange rates is all part of the process of travelling abroad. CurrencyFair.com offers great foreign currency exchange rates by cutting out banks. Effectively the website allows residents in different countries to 'swap' foreign currencies on an online marketplace.

But CurrencyFair.com isn't quite geared up for the holiday market just yet. A snag of the system is that you have to have a bank account in the foreign currency you are swapping into. For example if you wanted to get US dollars for your pounds, you'd need a UK bank account and a US bank account. So for people jetting off to Spain for two weeks it's not exactly practical.

For those looking to relocate abroad or people with holiday homes, CurrencyFair.com could potentially save them a lot of money. Foreign currency exchange rates are often lower with CurrencyFair.com because it cuts out the bank fees.

In order to swap money, you need to register, credit your account, exchange money and then transfer the money to your account, which takes around two working days. CurrencyFair.com works as an online market, so you can browse the foreign currency exchange rates and choose the best deal. The rates will always be affordable because if people list money with a poor exchange rate, then they will have no hope of selling it.

Once you've found an affordable rate and you've chosen the amount you wish to exchange, your currency is swapped with theirs. The money actually stays in the country of origin, thus cutting out extortionate bank fees.

Your money is protected - there's no chance of someone making off with your cash because the accounts are all pre-funded. CurrencyFair.com is regulated by the Irish financial authorities in Dublin. They impose a strict anti-money laundering policy and they maintain website security.

In the future, CurrencyFair.com hopes to make their marketplace more accessible to holidaymakers by introducing a prepay card. Are they offering a glimpse of the future for better foreign currency exchange rates?

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