When it comes to the dollar exchange rate in Mexico, make sure to choose the best exchange rate so you can get value for your money. Here is the beginner’s guide to the dollar exchange rate in Mexico.
Why Does the Exchange Rate Matter?
If this is your first time exchanging dollars into Mexican pesos, you should know why getting a good exchange rate is crucial. The simple truth is that you want to look for the lowest cost linked with converting USD to MXN because this means that you will have more money left to yourself.
On that note, it is incredibly important to know the full costs of international transfers before sending money. Compared to money transfer service providers, such as Western Union and Wise, banks have a higher exchange rate and conversion fees.
Also, if you exchange money using a bank, you can expect hidden markups within the exchange rate. As a result, the exchange rate can end up being much higher than the actual conversion fees. So, choosing a money transfer service provider is in your best interest, as a bank will charge you double without telling you.
Use Online Tools to Get the Best Exchange Rate
You can find many online tools that will show you the exchange rate for dollars in Mexico. You can leverage those tools to get a better idea of how much is the dollar in mexico, and which money transfer service to choose to leverage the best exchange rate.
Make sure to choose a platform that has no hidden markup when offering the exchange rate. The reason why you should choose a money transfer provider instead of a bank is that banks are costlier and have loads of extra fees involved.
Why Not Choose Banks to Exchanging Money?
When it comes to the best dollar exchange rate in Mexico, always choose a reliable money service provider over a bank. The reason is that you will be charged a higher conversion fee and a hidden markup within the exchange rate. You can also expect additional delivery charges – if you are pre-ordering money.
The best thing to do is to look for the best exchange rates by comparing the exchange rates of the different money service providers – irrespective of the conversion method that you are using. The hidden markup refers to the difference between the real rate, which is the mid-market rate, and the rate that is quoted by the bank.
Since banks use the mid-market rate between themselves, you essentially lose money due to the hidden markup that you pay without realizing it. So, even when you use a service that claims to have zero fees, you are still charged.
The Solution: Choose A Service Provider That Gives You The Real Exchange Rate
To avoid losing money and paying extra when changing USD into Mexican pesos, you shouldn’t choose banks; instead, you should always choose a money service provider that enables you to exchange money at the real rate. This way, you will know exactly what you are receiving – just the real Mexican peso rate without hidden fees but fair and transparent upfront fees.
