Figuring out forex

By THIS IS MONEY
Updated:

 

I am about to buy a new property in Spain for around £30,000 and am under the impression that foreign exchange rates are better than tourist rates. How does the foreign exchange market work and would a private individual be eligible to make use of it? MS, Corringham, Essex

Steve Carruthers, of independent financial advisers Blevins Franks, which specialises in expatriate advice, says: The answer could be as close as your local bank. Tourist rates are designed for those looking to exchange relatively modest sums, and some of the commissions involved can be quite excessive. But the foreign exchange market is more likely to be used for 'commercial' transactions (such as property purchase) where the amounts involved are considerably greater, and commissions/charges are much less. Banks may well help you out here. Try ringing round to see who is offering what.

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