Can I make a profit on my holiday money?

*noodles*

Couldn't really see a forum which this may fit into... If anyone thinks it would do better in a different forum please budge me on!

I'm going to Switzerland for new year and am just starting to consider changing my pounds into Swiss Francs. Anyway what I was wondering was... is there a way to boost my pennies for example:-

If I change my pounds into US dollars then into Swiss Francs could I theoretically earn a few more pounds depending on the exchange rates? (The above is just an example I haven't even checked any rates at the moment!)

If anyone could shed some light on this I would be very grateful... My maths is rubbish!!

richardw

Not much chance if your maths is rubbish, and transaction charges.

Donnie

http://en.wikipedia.org/wiki/Arbitrage

*noodles*

Thanks Donnie looks like I've got my bed time reading sorted for tonight! From the other post looks like I wont be making my millions, so I wont get too excited!

budgetflyer

A while back I thought about this using travelex online price guarantee.
Buy with travelex + pay the £3.50 to qualify for the "buy back" at the same rate. Normally Thomas Global is a better rate so get a claim in to travelex for price match guarantee. Return exact amount bought to travelex for refund.

This is just a theory,havent tried it yet

Example
Travelex rate £/Euro 1.4351 :- £1999.86 = 2870 Euro
Thomas Global £/Euro 1.455 :- £1999.86 = 2909 Euro
Diff = 39 Euro which you can claim cashback from Travelex
deduct £3.50 for buy back fee and you are left with a profit of aprox 35 euro/ £20

Finishrich

Has anyone actually had a refund through from Travellex. I emailed the details and never heard a thing.

budgetflyer

Yes Ive had several.

alchemista

budgetflyer wrote:

A while back I thought about this using travelex online price guarantee.
Buy with travelex + pay the £3.50 to qualify for the "buy back" at the same rate. Normally Thomas Global is a better rate so get a claim in to travelex for price match guarantee. Return exact amount bought to travelex for refund.

This is just a theory,havent tried it yet

Example
Travelex rate £/Euro 1.4351 :- £1999.86 = 2870 Euro
Thomas Global £/Euro 1.455 :- £1999.86 = 2909 Euro
Diff = 39 Euro which you can claim cashback from Travelex
deduct £3.50 for buy back fee and you are left with a profit of aprox 35 euro/ £20

Good idea, question would be whether the buy-back would be at the 1.4351 or 1.455 rate, if they do a guarantee. Also, how much effort is involved in this to make 20 quid?

Also, I assume the buy-back would only buy back the original amount purchased, not any more. For the cashback claim, do they pay out in pounds or euros (in your eaxmple)?

hammy_the_hammer

people in the city get paid a million pounds plus a year to try and make money out of currencies. what do you think your chances are?

jonesMUFCforever

The only way you will make money out of travel money is if the rate falls more than 7.5% after you have bought it.
At the moment there is no stable currency I would put my money on the £ doing this. In fact if our interest rates continue to rise in the new year £ will probably rise not fall against major currencies (unless of course other currencies have a higher rate of base rate borrowing than we do).