Currency exchange fees are an example of banks and other financial institutions taking advantage of the lack of transparency in the Foreign Exchange market in order to make a profit.
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London, UK (PRWEB UK) 15 July 2011
As part of a study to highlight the level of fees which banks charge for currency services, TransferWise is holding a competition to find ‘Europe’s Worst Exchange Rate.’ TransferWise is asking the European public to submit photos of exchange rates they receive or see, either online or in the real world. Submitted images will form a ‘wall of shame’ gallery to feature on the TransferWise website. A winner, drawn at random will receive an iPad2.
The competition forms part of a wider study looking into how much the average European spends on currency exchange fees each year. Traditionally customers pay between 3-6% for foreign currency payments at their bank, made up from margins between buy and sell prices plus fixed fees.
Kristo Käärmann, CEO and co-founder of TransferWise says “Currency exchange fees are an example of banks and other financial institutions taking advantage of the lack of transparency in the Foreign Exchange market in order to make a profit.” He added that businesses and private customers can enjoy the same mid-market exchange rates that banks get on their interbank market by using the TransferWise peer-to-peer currency exchange service.
TransferWise currently offers currency transfers between British Pound and Euro, with plans to offer a wider range of currencies in the future. Using TransferWise, businesses can make currency transfers at mid-market rates and without paying bank fees, except for a flat fee of £1 for a single transaction regardless of the amount exchanged.
About the Competition
To enter the competition to win an iPad2 people are asked to submit an image of an exchange rate they have seen or received. Images can be submitted by email competition(at)transferwise(dot)com or by visiting the Transferwise Facebook page http://www.facebook.com/transferwise. The competition opens on 13th July 2011 and closes on 3rd August 2011 at 11.59pm. For terms and conditions visit http://www.transferwise.com/competition.
TransferWise was founded in London in March 2010 by Taavet Hinrikus and Kristo Kaarmann. Taavet was part of the small team that started Skype in 2003 and has recently worked with a number of startups as an angel investor and advisor. Kristo had financial services background from Deloitte and PricewaterhouseCoopers. TransferWise is registered as Exchange Solutions Ltd and is licensed by the UK Financial Services Authority. For more information about TransferWise, please visit http://www.transferwise.com