If I google the exchange rate from one currency to another, it shows a much better rate than what I would get in a bureau de change for the same amount of money. Why are these two rates so different?
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If you google the exchange rate, you’ll get what is known as the interbank exchange rate, which is roughly what it says on the label: the rate at which banks will exchange currencies among themselves. It’s kind of the “real” exchange rate, if there is such a thing.
Exchange bureaus are a business. They provide a service, and charge you for it, like any other business (which is only fair!). They way they charge you for it is by offering you a less favourable rate, so they make money on the difference. Same with banks when you buy currency from them.
Traditional exchange bureaus and bank are not super clear about any of this, but many more modern services like Transferwise, Revolut, and such are actually a fair bit more transparent: They do the currency exchange at the interbank rate, exactly as if you googled them, but charge you an explicit percentage for the service.
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