An FX converter provides you with specific information. It does not only allow you to view the amount that you need to pay for a currency, it also provides you with historical information, along with a host of other reports. Not all converters offer the same information, but there are many online sites that offer you suitable information if you are a forex trader. All forex traders need to have a reliable converter to enable them to have this type of information at their fingertips.
The Rates on the FX Converter
FX converter rates should be in real-time and provide you with a wide range of currencies. There are different ways in which you can view the available information:
- The real-time market rate is the rate that traders are interests in. There is a range of ways in which an FX converter will display this information. The first is a simple method which states what a single unit of one currency will cost you in another currency. An alternate method is real time displays of the current ask and bid prices for different currencies. This is the most suitable method for foreign exchange trader.
- The rate that a financial institute will offer you. This method of display is useful for travellers. The rates that are used in this instance are the rates that the different financial institutions offer you. These are not necessarily the best rates on the market, so you should view a wide range of converters to obtain the best rate.
The Historic Rates
It is a good idea to view historical rates as well. Most foreign exchange converters offer you this facility. A common method of display is to show the most popular currency conversions in list form. You can also view historical rates in graph form. If you are a forex trader, you may want to view the rates over longer periods of time to get an idea of the trend of the currency.
There are converters that offer you historical values related to several currencies on a single graphic display. This may not be suitable for travellers, but will more than likely be appreciated by traders. Many of the converters allow you to set particular parameters such as frequency of the display.
Using the Historic Rates
Many travellers see no use for information regarding historical values. By using this information, a traveller could determine if they should buy foreign currency immediately or wait for a better rate. You may have the opportunity to wait until your time of departure is drawing near to get a better rate. If the foreign currency appears to be strengthening against your local currency, it is best that you buy immediately.
Foreign exchange traders find historical rates to be of value to them in their trading systems. You will be able to notice a trend and may be able to act on it to make a profit on your trades.
A FX converter website does not only offer you exchange rate information. Many of the available websites offer other information, such as trading information, news announcements and some of them offer basic trading for beginners in the market.