Currency Exchange and Money Transfers

One of the most important steps of moving to a new country is understanding currency exchange and the banking system. This post will cover what currency exchange rates are, what to be aware of when transferring money, and how to transfer money to the Netherlands.

What are currency exchange rates?

Each country’s money has a unique value. Exchange rates represent the value of one country's currency compared to another country’s currency. They determine how much of one currency you get in exchange for another currency. 

Most exchange rates are defined as floating, meaning their values fluctuate daily. The value is dependent on the country’s economic situation as well as other factors such as monetary policy, global trade and political stability. Some exchange rates are fixed to the value of a specific country's currency. A quick google search will provide you with the current exchange rate at any given moment. 

What to be aware of when transferring money

Transferring money internationally can come with hidden fees and charges. Be mindful of the following and do your research on money transfer options before you click send.

  • Hidden fees: Banks and money transfer services often have fees that aren’t immediately apparent. These can include transfer fees, currency conversion fees, and recipient bank fees.

  • Exchange Rate Margins: This is the markup that banks add to the base rate. The rate you see on Google is the mid-market rate, but banks and transfer services usually offer a less favorable rate to cover their costs. 

  • Transfer Speed: Depending on the service, transfers can take anywhere from a few minutes to several days.

  • Transfer Limits: Some services have limits on the amount you can transfer in a single transaction or over a period of time.

If you know you will be traveling and needing foreign currency it is good practice to keep an eye on the exchange rate. Many banks, or online money transfer services allow you to set notifications for rate alerts. This will notify you when there is a change in the value of the currency. This can help you get the best rate when you exchange your money. Keeping up with global news will also provide insight into how the exchange rate may vary in the coming weeks. 

How to transfer your money 

There are a variety of options to choose from when moving money abroad. These include traditional banks and online money transfer services. 

  • Traditional banks: While secure, traditional banks often charge high fees and offer a less favorable exchange rate. 

  • Online Money Transfer Service: It is becoming more popular to use online money transfer sites. They are fast, have lower fees and offer more transparency and are just as secure as traditional banks. Do some research to see what company is best for you. 

Popular online money transfer services:

  • Wise: Known for their low fees and transparent exchange rates. Wise is user friendly and offers clear fee structures.

  • Revolut: Offers competitive exchange rates and minimal fees.

  • PayPal: Widely used and secure, though it may come with higher fees compared to other services.


When we moved to the Netherlands we chose Wise. Their platform is simple to use and the fees are transparent. Additionally, the exchange rates offered were consistently better than from traditional banks.

Understanding currency exchange and money transfers is essential for anyone moving to the Netherlands. Be aware of factors that influence exchange rates and the options available for transferring money. By staying informed you can save money and avoid unnecessary stress. 

Questions about moving to the Netherlands or the banking system? Find additional tips for managing money in the Netherlands on our post about the Dutch Banking System.

Julia

Editor

Previous
Previous

Your Guide to Dutch Banks

Next
Next

What to pack when moving to The Netherlands