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

These figures are surprising and reflect a genuine, 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, so it is important to assess and compare the various currency exchange solutions available to you.

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

#1 Time spent: online currency exchange 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 amounts 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 to do so. All this takes time, as it involves numerous trips and waiting around. With an electronic currency exchange solution, such as the one offered by b-sharpe, cross-border workers can consult the currency converter, which shows the exchange rate in real time, and choose the best time to exchange their currency. They also have no 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 danger potentially lies outside. The security aspect is often underestimated, yet it is very real: when someone carries large sums of money on them (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 transfer and exchange solution, you naturally run no risk of being attacked, since the money transfer is carried out entirely digitally.

#3 The risk of loss

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

Conversely, by using an online currency exchange solution, you obviously reduce the risk of losing your money to zero.

#4 Exchange rates: currency exchange bureaux are well positioned

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

By way of comparison, b-sharpe positions itself with a margin of 0.5% on EUR/CHF transactions (for amounts under CHF 50,000)

For other currencies (such as USD), currency exchange bureaux use a two-step conversion, 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 one that can happen: a stock shortage. 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 currency exchange bureaux to take advantage of this excellent opportunity and exchange Swiss francs for euros at an attractive rate. However, demand was so high that most currency exchange bureaux, particularly in Geneva, quickly ran out of euros to offer, preventing most cross-border workers from exchanging their Swiss francs. This phenomenon was, however, limited at major currency exchange bureaux such as Change Migros, as the establishment had the capacity to restock.

With an online currency exchange service like b-sharpe, where transfers are electronic, there was strictly speaking no stock shortage as such (that would not be possible), but rather a suspension of quoted 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 terms, 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 try our service, which will allow you to save money while maintaining complete security, and without having to leave your home.

Link to the study mentioned in the article (PDF)