Currency Exchange with banks or Exchange services?
Traditionally, when Indian citizens there is a need in the purchase or sale of foreign currency, they are turning to the bank for the transactions. Banks in this country are generally the most authoritative financial organizations and are perceived as non-alternative instrument to carry out various actions with the money.
In fact it is not the right approach, because the financial markets are in some respects offers more features than banks can offer (including in the field of conservation finance). Today we look at a specific example of such a situation – the buying and selling currency exchange.
You Need To Buy Dollars
The vast majority of our fellow citizens do not use foreign currency exchange on a regular basis, but sometimes need to buy (or sell) dollars, euros and other currencies there is almost everyone. In this case, when the amount of the operation is not quite small (for example, a few thousand dollars or euros), the fulfillment of operation in the exchanger becomes less profitable, as it would like – to establish a bank rate of buying and selling is different from the official rate of the Bank of Russia and the exchange course particular currency.
Because of this, the buyer or seller of the currency exchange in any case lose some of the money, often quite significant – this is especially true in a relatively turbulent times, when the population from time to time there are concerns about the future of the dollar, with a concomitant desire to buy the currency for conservation finance.
In a situation need to buy or sell a few thousand foreign currency or such transactions on a regular basis it is more logical and more profitable to pay attention to the currency market, “the New York stock exchange.”
How To Buy The Currency Exchange?
In order to buy the currency exchange, it is necessary to conclude a contract with broker that has access to the desired market – in this case the currency. Next, the client is put a special account, he lists on his money and can carry out the purchase and sale of foreign currency through the Internet with the help of the trading terminal.
In addition to the favorable exchange rate for the exchange, there are other advantages:
- Security – all operations are done through the Internet, which removes the risk of fraud or physical weaning cybercriminals money.
- Ease of operations – again thanks to technology that allowed to transfer all activities in the network.
- There is a possibility of using the currency bought on the stock market as collateral for transactions in other markets – such as stocks or futures. This opens up good opportunities for professional gambling.
- In addition, income from currency trading on the stock exchange are not taxed – in that case, if a brokerage account has been wound up to the amount of its conversion into the currency and then the currency was withdrawn. In the case of profits from the game on the difference in rates – the tenderer must submit a tax return and pay the tax on the income.