In the not-so-distant past, it was the standard for Aussies to exchange foreign currency at money exchange stations or banks. However, a new norm has emerged as more and more Aussies are switching to digital forex platforms to conduct their currency exchange needs.
This industry benefits Australians as much as it benefits the world, as Forex allows economies across nations to trade and connect their currencies, enabling cross-border transactions to occur on a grander scale, from tourism to investing activities.
This begs the question: If the former means of changing foreign currency was so established, why are Aussies making the switch to digital Forex platforms in the first place? Is opting for this new, digital mode of foreign exchange a vastly superior method to the traditional means of exchanging currency? And if so, in what way?
The fact of the matter is that digital forex platforms are rapidly growing and absorbing the market share of this industry. And there are indeed some benefits of going for this new method of exchanging currency.
In this article, we’ll go into a deep dive into why more Aussies are switching to digital Forex platforms. Let’s jump right into it!
What are Aussies Abandoning in the Forex Scene?
Australians are fed up with the expensive and slow-moving processes that underscore the past forex trading scene.
There are multiple actors in this scene that Aussies are starting to steer clear of in the Forex space. Most notably, these include the major banks, money changers, and international wiring services.
Banks are notorious for charging customers a high fee on global wire transfers, eating up a chunk of the amount sent or received. This is on top of the markup that these financial institutions charge customers per transaction.
By the end of the deal, customers could be left with a 5 to 8% loss of their original amount, which can be as high as hundreds of dollars for four-digit transactions. The worst part is that customers may not even be made aware of this deduction due to a lack of transparency.
Besides banks, money changers are also starting to get the boot from the Australian status quo. The risk of carrying large amounts of cash and needing to rely on open hours is something many Australians despise, naturally leading to the falling off of this exchange method.
Finally, international wire services like Western Union are also becoming obsolete in favour of more digital ways of money transfer. The long wait time and expensive service charges are a big turn-off for these customers.
With that said, it’s important to mention that the need for foreign currency is still very much in demand in Australia, arguably now more than ever. The only difference is that the method of acquiring foreign currencies is shifting to more digital means, like buying through reputable Forex sites like OFX.
Let’s take a closer look at why this is the case.
Why is the Switch to Digital Forex Schemes on the Rise in Australia?
Besides the general resentment Aussie customers feel towards the traditional Forex trading methods, there are positive attributes that users can experience when switching over to the digital side.
Let’s take a look at the benefits of the digital Forex scheme in greater detail.
Can Trade With Multiple Currencies More Easily
One significant advantage of opting for digital Forex trading is exposure to a more convenient way of trading an expanded range of foreign currencies.
Banks tend to have limited available currency options as Forex isn’t typically their core service. To illustrate the point, HSBC only has 9 available currencies, ANZ has 11 currencies, while Commonwealth Bank has 14 currencies in their scheme up to the time of this writing.
However, dedicated digital Forex platforms like OFX can handle up to 30 currencies with even more trading pairs. Some notable currencies that are added on top of the standard ones (USD, AUD, EU, GBP, etc) include HKD, NZD, and SGD, to name a few. This diverse set of currencies enables seamless cross-border trade for a vast number of global traders.
Furthermore, dedicated Forex platforms also allow users to hold different currencies in a single account. This is unlike the case for banks, where the standard is to open a dedicated foreign currency account for a single currency.
Unlike banks, which require a separate account for each currency, digital Forex platforms make trading across currencies simpler and more seamless. This can be beneficial for traders and businesspeople who require fast foreign exchange solutions when handling their daily transactions and operations.
Higher Fees for Traditional Forex Methods
Another reason why more Aussies are switching over to digital Forex trading platforms is purely an economic one: exchanging foreign currency is usually cheaper online than it is through traditional means.
Wiring services like Western Union typically charge a higher price if the customer completes the conversion through them. This translates to a higher amount spent and a lower figure in the user’s bank account.
Fortunately, there’s a solution to this, and that’s by choosing to trade in digital Forex platforms. These platforms tend to offer more competitive rates across various currencies. They also typically offer clearer cost breakdowns, and registrations with them are typically free of charge as well.
Users can more easily save more of their money from each attempted conversion by opting for digital Forex machines. This reason alone makes digital Forex trading a preferred choice for many Australians.
Transparent and Trackable Progress
Money exchange stalls post and publicise real-time conversion rates in their stall, but these prices can vary independently of the going market rate.
Operators may take advantage of the fast-moving nature of the Forex market and charge customers higher than the going market rates. This is especially prevalent in places with a lot of heavy tourist foot traffic, like airports and tourist areas.
Due to the fast-moving nature of information, these stalls can get away with overcharging their customers and reducing the currency value that the customer is getting in return. And the worst part is that the customer will be none the wiser if they simply accept the deal and move on.
For people who don’t want to deal with shady operators, charging currency through a digital Forex platform is a viable alternative solution. These platforms provide a transparent breakdown of the cost of the entire exchange, allowing the user to know with confidence how much they’re getting in return.
There’s also a lower chance for people to do underhanded sales tactics, granting users peace of mind knowing that their money will be safely received by them, provided that they’re conducting their trade in a reputable Forex platform.
Faster Accessibility and User Experience
Digital forex platforms can be accessed as long as the user has a working Internet connection. They can access the platform through a computer or through a smartphone app.
With a digital Forex account, users don’t have to go to a physical bank branch or foreign exchange stall and wait in line to get their money exchanged. They simply have to transfer their funds online through one of these digital Forex platforms, fill in the correct information, and voila, the transaction will be completed just like that.
The speed at which users can access foreign currencies makes online Forex exchange platforms appealing to them. On top of quick transactions, users can also access these platforms 24/7, removing the need to wait for open business hours and long lines delaying potential payments.
Furthermore, users can also benefit from user-friendly features that make exchanging currencies more seamless. From rate alerts to a tab holding their transaction history, users have much more control over their foreign currencies with a digital Forex platform account, making trading an overall smoother experience for them.
We hope we’ve given you enough insights on why digital Forex is growing in appeal for most Aussies. Happy trading!