Currency exchange is no longer a rare need; it has become a more common necessity in today’s globalised world. From travellers who need to exchange currency before heading abroad to entrepreneurs handling international business dealings, there are several reasons why you might need currency exchange services. Whether for personal, business, or investment purposes, when it comes to currency exchange in the UK, people’s concerns are typically limited to two things: reasonable exchange rates and lower transaction costs. However, there are several hidden aspects that can significantly impact your transactions. But you don’t need to worry about these lesser-known facts. Being part of the foreign exchange world for years, we are here to uncover these secrets so you can optimise your best rates, avoiding these pitfalls.

Here’s a list of things you should know if you are new to currency exchange in the UK:

• Zero Commission is a Myth

When you go for currency exchange in the UK, many providers claim to offer services with ‘zero commission’, but in reality, it is just an advertising tactic to attract clients. So don’t get into this trap by focusing on apparently good deals, because such offers often come at the cost of poor exchange rates to cover for ‘no commission’. Instead of focusing on commission, compare actual exchange rates against the mid-market rate to evaluate which is the best option for you.

• Cash & Card Payments Offer Different Rates

Another less-known fact about currency exchange in the UK is that both cash and card payments offer very different rates. This largely depends on the provider; some providers charge extra for using debit or credit cards for currency exchange, while some offer better rates by cash transfer. So, it is wise to ask about rates and differences before proceeding with the FX transaction.

• Banks Might Not Be the Best Option

While banks might seem the most reliable option for all sorts of transactions, when it comes to currency exchange, that might not be the case. That’s because banks often charge higher fees, hidden charges, and higher markup with unfavourable exchange rates, making it more expensive. Therefore, fintech platforms like Linea Global are preferable options as compared to banks for foreign exchange, as they offer better rates at lower costs.

• Dynamic Currency Conversion Can Be a Trap

Sometimes, when you pay internationally with your debit or credit card, you might be asked if you would like to pay in your home currency rather than the local currency. This is what the term ‘Dynamic Currency Conversion’ (DCC) means in simple words. Why is it bad to pay that way? Because when you choose DCC, it comes at the cost of poor exchange rates and additional fees, which you might not be aware of. So, protect your money from such traps and always choose to pay in the local currency.