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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Another way to look at this is that currencies are a commodity. The price you see on Google is the wholesale exchange price. The price you pay is the packaged retail price with all the middleman and marketing costs and profits built in. The same is true for any commodity. You’ll get a much better price if you can buy it in huge quantities on an exchange vs tiny quantities at a retailer.
At most banks the more you’re exchanging the better rate you’ll get too. If you’re picking up cash for holiday you’ll get one rate, but if you’re wiring a large amount you’ll get a better one.
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