The best British Pound to Euro exchange rate of the year to date (past 365 days) was 1.3199 achieved on 2016-05-31.
Today's exchange rate is at 1.1488, this is 12.96% off the best exchange rate of the past year-to-date.
The best British Pound to Euro rate of the last month (last 30 Days to date) was at 1.1927, today's conversion is 3.68% off that rate.
How do we Work out Bank Exchange Rates and Independent Specialist Rates?
Those looking for the best exchange rates should be aware that banks subtract a spread to the real market rate in order to derive profit.
A detailed study of international bank transfer costs by MoneyMover and Accourt - a consultancy service to the payments industry - has revealed customers have no access to the data used to determine the actual exchange rates delivered when making international payments.
“In general terms UK banks lack transparency on currency exchange rates and margins. Each bank generates its own FX rate for the day and it is provided by an internal system which customers do not have access to. In some instances the bank’s exchange rate is not even provided before confirming the payment so it is unknown to the customer how much is going to be charged for the transaction,” noted Accourt.
Accourt conducted research into the top six UK banks with the aim of extracting the true cost of making international payments by adding the fee to the amount they earned from the profit made on the exchange rate they received and the exchange rate they offered. The results were published in Accourt's second annual Currency Risk Outlook 2015 report.
The above table is summary of the costs of one set of findings on a transfer of £50000, studies were also conducted on transfer amounts for £10K and £100K.
Accourt advises customers to explore alternative options that may provide more straight-forward and cost-effective options for transferring money internationally.
What our tool does is arrive at the retail exchange rates that are available to consumers after spreads have been taken - the rates are of course indicative due to the fluid nature of the FX markets and hence why you should double-check the rate on offer in your own bank account against the quote provided by independent providers.
The higher the spread charged, the less currency you get, in fact using independent providers can save in the region of 4-5%.
Don't be Beaten the Markets
Dedicated money transfer specialists are also able to offer personally assigned dealers that are reactive to market moves.
We have heard of countless people with outstanding euro payments sitting back and hoping for a stronger GBP to EUR exchange rate. Unfortunately it has been one-way traffic since November and we are now seeing the prospect of a rate of 1.25.
Had these people set up a payment strategy they would have made the payments well before things deteriorated to current levels through the use of a stop-loss.
Should the rate recover from here you could set a buy order so when a spike occurs your order is automatically filled.
These are just two of the many hedging strategies available to take advantage of beneficial rate movements in the pound to euro exchange rate.
Be aware that Brexit fears are yet to fully fade, as such some big name banks are warning that the euro could hit parity with the pound in 2016, something worth keeping in mind.