Foreign Exchange Office vs. Bank: Which Is Better?

When comparing the difference between a foreign exchange and a bank, which is better, depends on your needs.  Both offer you the ability to send and receive money and exchange currency.  Beyond these services, they differ greatly in what they have to offer and how they best serve you.  Choosing between a foreign exchange office or bank come down more to a personal preference then it does to a choice between what may better, as everyone’s banking needs are different.

Foreign Exchange Office

A foreign exchange office offers basic banking services to its customers.  It can be established through a bank or other type of regulated institution.  They have branches throughout many cities, are commonly found in airports, and train stations where there is a need for currency exchange.

The primary function of a foreign exchange office is to exchange the currency of one country to another.  As this is their primary role in the banking industry, they tend to have a keen understanding of the currency market and can provide rapid transactions at a low cost.  A foreign exchange office can also engage in transferring and receiving money from different countries as well.  This is of value to an individual who does not need the services of a full-time depository institution but has a need to send and receive money on a regular basis.

Bank
A traditional depository financial institution or bank is designed to offer a broad range of products and services to its customers.  From checking and savings accounts to loans and certificates of deposit and investments, a bank can provide a one-stop shopping home for all of your financial needs.

Foreign Exchange Office vs. a Bank

Many of the services provided through a foreign exchange office are also performed at a bank. The fee structures may differ between the two, based on the number of transactions performed and the cost to conduct these services. A bank has an added advantage of being open later and having more levels of staff to meet specific banking needs.  A foreign exchange office has the ability to be mobile and set up almost anywhere there is a need for more limited services.

You should factor in your banking needs and whether the fees and costs of engaging in traditional banking is justifiable. The choice you make will determine which is best for you and best suited to meet your banking needs.

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