We all know the term “Exchange Rate” but there are many things about exchange rate which you may not know. So, I decided to let you guys know about those details. Let’s check out.
What is an Exchange Rate? It’s a way to describe how the value of one country’s currency compares to another country’s currency.
Exchange rates are usually labelled with the currency codes of the two currencies being compared. For example, GBP/USD exchange rate. The first currency listed is the one being purchased.
The number describes the price of one currency in terms of the other currency. So, GBP/USD exchange rate is 1.32 means you need to pay USD$132 to purchase GBP£100.
Why are exchange rates important? If you are travelling somewhere in the world, no matter whether that’s for a short time or long time, you need to be aware of the exchange rates when converting or spending the money. They also play a major role when you are transferring money internationally.
Revolut offers a great Revolut rate, making it simpler and more affordable to send money abroad. Just choose how much you want to send and where to.
Why do exchange rates change? Exchange rates are floating all the time as foreign exchange traders buy and sell currencies. When a currency appreciates, its exchange rate with another currency increases and more of the foreign currency is needed to buy one unit. If a currency depreciates in value, that means its exchange rate with a foreign currency goes down and less of the foreign currency is needed to buy one unit.
Where can you see exchange rates? You can use our foreign currency converter widget to compare current exchange rates across all the currencies of the world.
Hit “like” if you think this is good. Let me know in the comment section if you want to know about anything else.
Veda | Community Team
You didn’t mention the effect of
Spread on exchange rates…
Why is the mid-market rate shown in the Sell screen? Shouldn’t we see the Sell rate? I mean, I see 1 EUR = 1.1028 USD, but 100 EUR will get me 110.16 USD, not 110.28 USD. I only see the Sell rate in the Review order screen.
Plus, when setting up a Limit order, I can’t set a rate below the shown (mid-market) rate, so I can’t set up an order to sell 100 EUR at, for instance, 1.1020 USD. This is not ok and should be easily fixed.
Yup, I’m really pissed about that too - What You See is NOT what you get until you progress to the review order screen when you discover that you get significantly less exchange…
It’s the one thing that is really getting my goat at the moment. It didn’t use to be like that until the extra step was introduced by which time, the rate may have changed in a fast changing rate scenario.
should be better than that!
I have an update. After updating the app today, the exchange screen shows the actual sell rate. So that’s solved. Well done!
However, the Limit order screen still shows the mid rate as the threshold, so you can only order a limit sell at a rate higher than the current mid rate - so significantly higher than the current sell rate. This means you might have to wait a lot for a limit order to execute. Not ok for day to day use.
Market sell: 1 EUR = 1.0949 USD
Limit sell: 1 EUR > 1.0961 USD
So I can’t set a sell limit order for 1 EUR = 1.0955, but I can use 1.0956
I feel like this can be easily fixed. Unless it’s by design, of course.
Revolut currency exchange benefits aren’t what they used to be, but they might still be better than competitors. I’d appreciate a little more transparency, though.
I have the same issue as described in the above posts, when trying to use Limit Order feature, the price I need to set the target is much higher than the current Market Order price.
For example in my case, if the price for 1 EUR is 4.9291 RON, I cannot input in the Limit Order a price lower than 4.9372 RON.
This means that I cannot set a target to sell my EUR once 1 EUR will be valued at 4.9300 RON, as I could few months ago.
I contacted support and after raising the issue to the FX team they concluded that this is a desired change but, to be honest, I cannot understand what would be the reason behind this.
I also asked how can I set the new Limit Order price in order to make sure that the exchange will happen at a certain value (for example set 4.94xx to change at 4.9300) but the support person was not able to tell me how much do I need to add to my desired value in order to obtain it.
So, from my point of view, it was just a “it’s not a bug, it’s a feature” kind of result.
I emailed to firstname.lastname@example.org asking for more details about this but for the moment I got no replies.
in developer terms, its usually called an undocumented software event
@mitzu2250 Hello Welcome to the community.
Thank you for pointing this out. We will escalate this to the appropriate team for improvement.
@Graham_Lees Thank you for helping out.
Veda | Community Team
Can I transfer between my currencies on a personal account?
The feature you’re looking for is “Exchange”.
I think that’s Business only.
Oh no. Look at your app’s main account page. Second button from the left. (Transfers between currencies are exchanges. This applies to the app used in most regions like UK and EEA. If you are in one of the regions where Revolut isn’t fully rolled out, this might not apply to the app version available to you.)
Oh right, I see it now. Thanks.
@jbradshaw7 Welcome to the community. Hope that helped.
@Frank Thank you again for your help!
Veda | Community Team