Wednesday, November 12, 2014

Forex is riddled with scams - especially for the consumer

Forex is a scam - even when it is legal. We've all seen the signs at the Airports "Free foreign exchange" - a lie, of course. All it means is that the Sharks charge their fee by fiddling the exchange rate rather than adding it as a separate item. As consumers we always pay over the odds for our travel money - often disgracefully so. Because most of us only travel once or twice a year we tend to shrug our shoulders if we notice it. But look at the exchange rates that are used for corporate transactions and you'll see they are far better for the companies than we as consumers can get. And look at the consumer "spread" - the difference between Buy and Sell rates. That will give you a clue as to the licence to print money that forex is.

The mostly ignorant propaganda against Britain joining the Euro largely ignored the consumer and focused nonsensically on faux-patriotism about the Pound. If we had joined the Euro whatever other problems we might have had to wrestle with at least as consumers travelling in Europe we'd have avoided Forex rip-offs on our hols! 


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