We're losing millions in foreign exchange
The Bulleton, Gold Cost, 20 June 2007
We're losing millions in foreign exchange
20 June 2007
Australians are losing millions of dollars a year in foreing exchange transactions because of poor planning and bad advice, according to a recent survey.
The Galaxy survey, commissioned by foreing exchange specialist HiFX Australia, found that Australian consumers generally were unaware of the risks associated with changing large sums of money.
HiFX said that about 600,000 Australians made a foreign exchange transaction of more than $20,000 in the past two years.
But the survey dound that very few planned their deals in advance or sought expert advice to ensure they received the best exchange rate and commission price.
The survey found that only 16 percent of respondents sought a professional foreign exchange adviser, suggesting most people were unaware that specialist service providers existed and could potentially deliver significant savings.
The most common information sources for exchange rate transactions were media (62 percent), exchange rate boards at banks and bureau de change (54 percent), and friends and family (22 percent).
When asked which organisations they would likely go to for a large foreign exchange transaction for reasons other than travel, only 2 percent of respondents cited a specialist foreign exchange house (excuding bureau de change).
Most - 53 percent - said they would use a bank, regardless of whether it offered the advice and expertise they needed.
The survey found 82 percent of people said they wanted access to professional advice and services to make their currency transactions easier and potentially more cost-effective.
These services included advice on timing, the ability to execute transactions at a pre-determined exchange rate, being able to fix a favourable rate and pay later, and the ability to make regular payments at a fixed exchange rate.
HiFX Australia Director, Spencer Wilcox said the survey confirmed his company's view that, apart from exchanging small amounts for overseas trips, Australians were unaware of the risks associated with changing large sums of money.
"Clearly, too many Australians are losing money in foreign exchange transactions because they don't seek specialist advice," said Mr Wilcox.
"A lack of planning can result in poor choices, bad timing when transacting and exposure to uncompetitive exchange rates, charges and commissions."
The study, conducted in June, had 347 respondents.