Forex Calculator – Foreign Exchange Rate Converter
Calculate foreign exchange conversions with real-time rates and commission fees
This calculator provides estimates for educational purposes. Actual exchange rates and fees vary by provider. Always verify current rates before making financial decisions.
Table of Contents
How to Use
- Select the currency you want to convert from
- Select the currency you want to convert to
- Enter the amount you want to convert
- Enter the current exchange rate
- Add commission percentage if applicable
- Click calculate to see conversion breakdown
What is Forex?
Forex (Foreign Exchange) is the global marketplace for trading national currencies against one another. It's the largest and most liquid financial market in the world, with trillions of dollars traded daily.
Exchange rates determine how much of one currency you can exchange for another. These rates fluctuate constantly based on supply and demand, economic indicators, geopolitical events, and market sentiment.
How Exchange Rates Work
An exchange rate tells you how much one currency is worth in terms of another. For example, if the USD/EUR exchange rate is 0.92, it means 1 US Dollar can be exchanged for 0.92 Euros.
Exchange rates are quoted in pairs (like USD/EUR, GBP/USD, etc.) and can be expressed in two ways:
- Direct quote: Shows how much of the domestic currency equals one unit of foreign currency
- Indirect quote: Shows how much foreign currency equals one unit of domestic currency
Factors Affecting Exchange Rates
Exchange rates are influenced by numerous factors:
| Factor | Impact on Currency |
|---|---|
| Interest Rates | Higher rates attract foreign investment, strengthening currency |
| Inflation | Higher inflation weakens currency purchasing power |
| Economic Growth | Strong GDP growth typically strengthens currency |
| Political Stability | Stable governments attract investment, supporting currency |
| Trade Balance | Export surplus tends to strengthen currency |
| Government Debt | High debt levels can weaken currency confidence |
Understanding Forex Fees and Commissions
When exchanging currencies, you'll typically encounter various fees:
- Commission: A percentage or flat fee charged by the exchange service
- Spread: The difference between the buy and sell price (how providers make profit)
- Service fees: Additional charges for processing the transaction
- Wire transfer fees: Costs associated with international money transfers
- ATM fees: Charges when withdrawing foreign currency abroad
Always compare the total cost including all fees, not just the exchange rate, to get the best deal on currency conversion.
Major Currency Pairs
The most traded currency pairs in the Forex market are:
| Currency Pair | Description | Nickname |
|---|---|---|
| EUR/USD | Euro vs US Dollar | Euro |
| USD/JPY | US Dollar vs Japanese Yen | Gopher |
| GBP/USD | British Pound vs US Dollar | Cable |
| USD/CHF | US Dollar vs Swiss Franc | Swissie |
| AUD/USD | Australian Dollar vs US Dollar | Aussie |
| USD/CAD | US Dollar vs Canadian Dollar | Loonie |
These pairs account for the majority of Forex trading volume and typically offer the tightest spreads and highest liquidity.
Tips for Currency Exchange
- Compare rates from multiple providers before exchanging currency
- Avoid exchanging currency at airports, which often have poor rates
- Consider using credit cards with no foreign transaction fees for purchases abroad
- Monitor exchange rate trends to find optimal exchange times
- Be aware of the total cost including all fees and commissions
- For large amounts, consider using specialized forex brokers for better rates
- Set up rate alerts if you're waiting for a specific exchange rate
- Understand the difference between interbank rates and retail rates
When to Exchange Currency
Timing can significantly impact how much you receive when exchanging currency:
- For travel: Exchange 1-2 weeks before departure to avoid last-minute airport rates
- For investments: Monitor economic indicators and central bank announcements
- For business: Consider forward contracts to lock in rates for future transactions
- Avoid exchanging during major news events which cause high volatility
- Weekend rates may be less favorable than weekday rates
- Consider dollar-cost averaging for regular large exchanges
Frequently Asked Questions
- How do I find the current exchange rate?
- Current exchange rates are available from banks, forex brokers, financial websites, and currency exchange services. Rates vary by provider and change constantly. The interbank rate (shown on financial sites) is typically better than retail rates offered to consumers.
- Why do exchange rates differ between providers?
- Each provider sets their own rates based on the interbank rate plus their markup. Factors include their operating costs, profit margins, transaction volume, and competitive positioning. Banks and airports typically offer worse rates than specialized forex services.
- What's the difference between buy and sell rates?
- The buy rate is what the provider pays to buy currency from you, while the sell rate is what they charge to sell currency to you. The difference (spread) is how they make profit. You'll receive the less favorable rate as a customer.
- Is there a best time of day to exchange currency?
- The forex market operates 24/5, with highest liquidity during overlapping trading sessions (London-New York). While short-term fluctuations occur, for most people timing the market isn't practical. Focus on comparing providers and avoiding high-fee locations.
- How does commission affect my exchange?
- Commission is typically charged as a percentage of the transaction amount and is deducted from the converted currency. A 2% commission on converting $1,000 at a 1.20 rate would give you €1,176 instead of €1,200. Always factor in all fees when comparing options.
- Can I negotiate exchange rates?
- For large amounts (typically $10,000+), many banks and forex brokers will negotiate better rates. Small retail transactions usually have fixed rates, but comparing multiple providers effectively negotiates through competition.
- What are exotic currency pairs?
- Exotic pairs involve one major currency and one from an emerging or smaller economy (like USD/TRY or EUR/ZAR). They have wider spreads, higher volatility, and lower liquidity than major pairs, making them more expensive to trade.
- How do I protect against unfavorable rate changes?
- For planned future exchanges, use forward contracts to lock in current rates. For ongoing exposure, diversify across currencies. For travel, get most currency before departure but keep some flexibility for rate improvements.