Frequently Asked Questions

At what currencies rate will Currenge convert money, and when will it do so?

What is currency rate at which Currenge may convert at?

Currenge converts money for you, as part of its service, at the Bid or Ask currency rates prevailing at a trading room that serves Us, which is enabled for us to convert your funds at.

The conversion margin between the buying and selling (also Known As: ‘Bid – Ask’) rates of each of the three main currencies USD, EUR and GBP against the Israeli Shekel, on trading days when there is relatively normal volatility in the foreign exchange markets, is of the scale of 0.12-0.14%, and possibly even smaller than that.

Converting currencies at a margin such as the above, is that compared to the middle between the buying and selling currency rates (also known as: ‘mid-market’) of a currency out of a above mentioned currency pairs, the transaction cost component, which is associated to currency rate, is of the scale of 0.06-0.07%, and possibly would even be smaller than that.

The currency pair Bid-Ask margin, which forms a ‘transparent’ cost, may increase in a period of high volatility in the foreign exchange markets, or on opening or closing half an hour or so.

Exotic currencies conversion, Or a direct conversion of two currencies not including the Israeli shekel, may endure a higher than that cost, which is embedded within currency rate.

When possible, where your conversion would be executed against monies coming from a second Currenge client with an opposite direction transaction, you may enjoy a conversion with a zero spread, i.e., not including a cost within the currency rate.

The average buying and selling rates of a currency pair in trading rooms, with a possible delay of seconds or fractions of a second, can be viewed on financial information websites such as investing.com. Such websites may display rates from trading in shekels conducted outside of Israel, at times when foreign exchange (Forex) trading is not available within Israel itself.


When may a zero-spread conversion be possible with Currenge?
When Currenge can facilitate a conversion of one client’s funds against another complementary client’s funds, it may facilitate such a conversion, so that these clients may receive better rates compared to having their conversion executed via currency trading room, where a none zero spread exists in the currency exchange rate.


When is Currenge expected to lock in a currencies rate for a client’s transaction?
Currenge is expected to set a transaction currencies rate, in a close time proximity to and after the receiving of a money transfer from a client.

Following a client update, and possibly in coordination with it, there may be circumstances where the rate lock-in will be done at a different time—for instance, while waiting for the receiving of conversion funds from another client, which will be used for conversion without an exchange rate spread.

The principal reason for locking in the conversion rate only after the receiving of funds from a client and not before is to avoid a situation where Currenge itself obliges to a transaction, a client fails to transfer funds, and the cost of this obligation would have to be allocated on to our other clients.

For example, if a client requests a one-million shekel transaction, and a rate is locked in for it through our obligation to execute the transaction in a currency trading room, and such client does not transfer its funds, and at the same time the currency rate drops by 2%, we would lose 20,000 ILS in this example, all for a transaction where our potential income could have been only about 1,000 ILS.

To prevent such a scenario from occurring, which would negatively affect our cost model and impose a burden on our charge from other clients, we lock in a rate only upon the receipt of funds from a client.

In exceptional circumstances, we may allow rate setting for the full transaction amount, only with the transfer of a partial money transfer, which is of a significant amount relative to full transaction amount, and where the completion of the full money amount transfer is done within a relatively short time, all with prior coordination with us.

Do you have any question regarding the above answer? Ask Us