Currency exchange bureaux or online currency exchange: factors to consider when choosing

These figures are surprising and reflect a very specific ‘pattern of currency exchange behaviour’. Currency exchange bureaux are a long-established way of exchanging currency (for example, the sector leader, Change Migros, has been in existence since 1961) and are deeply ingrained in the habits of certain customers, who have been benefiting from attractive exchange rates for decades (the EUR/CHF exchange rate offered by currency exchange bureaux is far more favourable than that offered by banks).

With the emergence of new online currency exchange services, alternatives are now available to customers of banks and currency exchange bureaux; it is therefore important to assess and compare the various currency exchange options available to you.

Here, then, are the factors to bear in mind when exchanging money.

#1 Time saved: changing nappies online takes less time

Let’s say someone wants to exchange 4,000 Swiss francs in Geneva. They will need to withdraw the Swiss francs they wish to exchange from their bank account. In this case, given the amount involved, they will usually do this at their bank’s counter, as ATM withdrawal limits are often capped. They will then need to go to the nearest currency exchange bureau in Geneva and exchange their Swiss francs for euros. Very often, they will have to wait to do this and will therefore have to queue at the currency exchange bureau.

Finally, they will need to deposit the euros they have exchanged at their bank (in France, Italy or Germany), and will also have to visit their branch in person. All this takes time, as it involves numerous trips and waiting around. With an online currency exchange solution, such as the one offered by b-sharpe, cross-border workers can consult the currency converter, which provides real-time exchange rates, and choose the best time to exchange their currency. Furthermore, they do not need to travel anywhere and can make their transfers directly from their computer, smartphone or tablet.

If you’d like to find your nearest Change Migros branch, follow this link: https://www.migros.ch/fr/cooperatives/migros-geneve/change-migros/bureaux-de-change.html

#2 The security of your currency exchange transactions

Currency exchange bureaux are safe places, but the potential danger lies outside. The security aspect is often underestimated, yet it is very real: when someone carries large sums of cash (several thousand francs or euros withdrawn from a currency exchange bureau in Geneva, for example), they run the risk of being mugged.
With a fully electronic money transfer and exchange solution, you naturally run no risk of being attacked, as the money transfer is carried out entirely digitally.

#3 the risk of loss

Another possible scenario is the loss of cash. When handling cash physically, there is a risk of misplacing your Swiss francs (before exchange) or euros (after exchange). Even though customers are generally very careful, the likelihood of this happening is still much higher than with an electronic transfer.

Conversely, by using an online currency exchange service, you obviously eliminate the risk of losing your money.

#4 Exchange rates: currency exchange bureaux are well situated

Contrary to popular belief, and thanks to some very effective marketing, currency exchange bureaux promote the fact that they offer the most competitive EUR/CHF exchange rates on the market. Objectively speaking, they offer very favourable exchange rates (for EUR/CHF, their margin is around 0.8%), which are generally twice as good as those offered by banks.

By way of comparison, b-sharpe charges a margin of 0.5% on EUR/CHF transactions (for amounts of less than CHF 50,000)

For other currencies (such as the US dollar), high street bureaux de change use a two-step conversion process, which generally makes the transaction more expensive than that offered by online currency exchange services.

#5 Stock shortages: possible at currency exchange bureaux

It is a rare occurrence, but it can happen: a shortage of stock. The sharp rise in the value of the Swiss franc against the euro on 15 January 2015 is still fresh in many people’s minds. People literally rushed to the bureaux de change to take advantage of this golden opportunity and exchange Swiss francs for euros at a favourable rate. However, the demand was so high that most bureaux de change, particularly in Geneva, quickly ran out of euros, preventing most cross-border workers from exchanging their Swiss francs. This phenomenon was, however, limited in major bureaux de change such as Change Migros, as the establishment had the capacity to restock.

With an online currency exchange service like b-sharpe, where transfers are made electronically, there was strictly speaking no stock shortage (obviously), but rather a temporary suspension of exchange rates for a few minutes, caused by the partner banks.

An alternative to the currency exchange bureau: b-sharpe

Currency exchange bureaux are very popular and offer very attractive exchange rates, particularly compared to banks. Today, there are equally attractive alternatives in many respects, thanks to online currency exchange services.
If you’d like to try the leading online currency exchange service, we invite you to give ours a go. It will allow you to save money whilst ensuring complete security, all without having to leave your home.

Link to the study mentioned in the article (PDF)