Let’s try and debunk some today…
Urban myth #1
Foreign exchange (FX) companies buy money on a good day and stockpile it (and only give it to friends)
If only this were true! I would never have to buy a beer again. Alas, it is not true. We are not allowed to buy money in advance, we buy money to order only.
Urban myth #2
FX companies play with client’s money overnight and invest in high-interest accounts
NOOOO, we are definitely not allowed to do this, ever! We never play with money! All client money is held in secure client accounts; it’s not invested overnight; we do not buy and sell it several times over to make a profit; we do not make any interest on the funds in our client accounts.
Urban myth #3
Never buy money on a Monday / Friday / any day after 3 pm (delete as appropriate)
The most common myth. We hear it all the time from clients! Exchange rates move constantly. Information comes out to cause these movements constantly. No date or time of the week is best.
Urban myth #4
The exchange rate is the same for the whole day and doesn’t move
Exchange rates move every 2 to 3 seconds. They are not the same for the whole day – definitely not all week.
Urban myth #5
The guy in the pub/golf course/friend of a friend/uncles Fred’s best mate’s second cousin (delete as appropriate) says the exchange rate will go up
I love hearing this one. It’s not quite an urban myth but has to be included. Almost every day we talk to a client whose “uncle Fred’s best mate’s second cousin “works “somewhere financial” and “he knows about these things”. They rarely do! Fx is the most liquid market in the world so unfortunately there is no inside information to be had.
Written by Emma Bullock, Global Currency Exchange Network