A FX converter is a tool that most people have come across at some point. While they may not have used them they will have seen them being advertised or on a website they were looking at. Many new traders wonder whether or not they should be using one of these tools. There are certain people who benefit from these converters and you should see if you are one of them.
What is a FX converter?
Before you can determine who should be using a FX converter you have to know a bit more about them. As the name suggests, these items convert one currency into another at the current or a previous foreign exchange rate. If you are going to use these items then you should know that you can convert any amount of one currency into another. If you want to know how many Australian dollars you can get for 23 British pounds you simply place this into the converter and it will tell you.
Cost To Use
How much something is going to cost you to use should always be considered before you commence its use. Most forex converters are free to use. There are very few where you have to pay anything at all. Not all converters will offer you conversion rates for all currencies. Some converters only have the most popular currencies while others offer more than 160 currencies.
Who Requires a Converter?
Now that you know a bit more about the converters you should look at who uses them:
- Large corporations often make use of FX converters. This is to allow them to calculate potential costs for their business. This is particularly so if they have employees in foreign countries that they have to pay, or they have branches of their business based in foreign countries. Large corporations use FX converters for financial accounting and costing purposes, particularly when it comes to period end reporting.
- Forex traders – forex traders often use currency converters to see what the interbank rate is. Traders also use converters to see how much the rate has changed since they placed their trade. There are many traders who do not use a FX converter at all as they tend to make use of graphs instead.
- Importers and exporters – if you are working in the import and export industry you have to know what the value of products are in your currency and another currency. If you are importing you have to see if it is financially viable to bring the products in. If you are exporting then you have to see how much the people in other countries have to pay you. Converters are used because they are easy to access and easy to use.
A FX converter is a handy tool to have. In order to use them you simply need to have an internet connection. The rates you are provided are generally based on the actual rates at the time of entry.