Ways to Optimise Currency Conversion
Many real money players worldwide enjoy playing gambling games in online venues located outside of their own country. There are many reasons why this option is popular. Maybe to take advantage of better odds, greater variety and quality of games, a safer gambling experience, etc., the list is endless. Whatever the reason, there are also downsides and challenges to overcome playing real money games in jurisdictions outside of the country you reside. One such example is the loss of money through the conversion of funds from one currency to another. Typically, banks and brokers charge anywhere between 2% - 5% for currency exchange. At the high end, this equates to £100 for every £2,000 exchanged.
Peer to Peer (P2P) Currency Exchanges
To overcome this problem, Internet-based peer to peer exchange platforms have sprung up that cuts out the middleman (and their high fees) to offer better rates to the purchaser. On average, they can save between 75% - 90% on the average cost of currency exchange. Some P2P exchangers, such as Transferwise, are regulated in more than one country and can provide users with bank accounts in multiple countries. Others, such as the Russian P2P exchanger bestchange.com allow traders to deal directly between themselves in fiat currency and some more popular digital cryptocurrencies. Going one further, bestchange even provides market prices for currency exchanges between different E-wallets, such as PayPal EUR to PayPay USD. This is particularly interesting when you consider PayPal charges a currency conversion fee of anywhere between 2.5% - 4%.
How P2P Currency Exchangers Work?
It is a relatively straightforward process to use a currency exchange platform to secure the lowest exchange rate between fiat or digital currencies. First, you must open an account to make currency deposits. Opening an account on the various platforms generally requires entering personal information and verifying your identity. The entire process tends to be significantly faster than it would take to open a high street bank account where physical documentation is often needed.
Depending on the platform you are using, some platforms such as currencyfair.com will allow you to set your own exchange rate in the same way Betfair will enable gamblers to set their own betting odds. Others also provide facilities to bid an amount and accept published rates from other account holders. Once a market match is found, funds are automatically exchanged between users. The best operators in the market have sufficient resources to step in and provide liquidity in cases where there are insufficient matches. In these instances, a small fee is sometimes charged when the platform uses its own capital to make the exchange possible.
Choosing the Best P2P Currency Exchanger
There are many P2P exchange platforms available, and they all offer unique advantages and disadvantages. Choosing one that is right for you will take a bit of time and research. Here are a few tips on things to look for and a list of some of the best platforms available to help you along the way.
Ensure the platform trades in the currencies you wish to exchange
Look for high-volume traders to ensure the best rates, fast conversions and smooth transfers
Compare exchange rates and fees offered.
Check the platform is registered and licensed
Establish how long it takes to process a transfer
Top P2P Currency Exchange Platforms
Here is a small list to help you get started:
Pros and Cons of using P2P Currency Exchangers
Significant cost savings on currency exchanges
Fast Transfers for sums large and small
Convenient anytime anywhere transactions
Less popular smaller currencies may not be available
P2P marketplace does not always offer customer protection
May take time to research and find a solution that fits your needs