Understanding exchange rates

Calculating our margins

Buying euros

Selling euros

Foreign exchange market (or Forex)

Interbank rate

Rate at which the main banks trade currency

Changes by the second, according to supply and demand
(1,1065 in this example)

Intermediary

Every financial intermediary providing foreign currency decides its own margins.

b-sharpe applies a 0,5% margin
up to CHF 50,000

You

For CHF 5’000
1,1065 x (1+0.5%)= 1,1120
You receive:
5’000/1.1120 = EUR 4’496.40

Foreign exchange market (or Forex)

Interbank rate

Rate at which the main banks trade currency

Changes by the second, according to supply and demand
(1,1065 in this example)

Intermediary

Every financial intermediary providing foreign currency decides its own margins.

b-sharpe applies a 0,5% margin
up to CHF 50,000

You

For EUR 5’000
1,1065 / (1+0,5%) = 1,1010
You receive:
5’000 x 1,1010 = CHF 5’505

Setting the rate

In real time

On receipt of the funds

Setting the rate in advance

Setting the rate

You can set the rate with a member of our staff or via our apps. We are then committed to the rate, whatever happens on the market.

You send us the funds

You undertake to send us the funds in currency A within a maximum of 48hrs*

You receive your funds

in currency B within one working day.

*In the event of any default on your part, we will invoice you for any exchange loss which may result from the unwinding of our cover. After 48 hrs, our position will need to be financed, and we will invoice you for this (0.02% per day).

You send us the funds

in currency A

Setting the rate

We apply the rate at the time of receipt

You receive your funds

in currency B within one working day

The foreign exchange market

In the foreign exchange market, the relative value of one currency against another varies according to supply and demand. Currencies are always quoted in twos, or ‘currency pairs’. For example, EUR/CHF gives the value of one euro against one Swiss Franc, so GBP/USD gives the value of one UK pound against one US dollar.

The foreign exchange market operates as an “OTC” (Over The Counter) market. It is not organised or centralised in the same way as stock markets Other than the reference rates published daily by the central banks, there are no official rates.

b-sharpe is a financial intermediary, so we are able to offer businesses and invdividuals access to more favourable exchange rates than those offered by traditional organisations like banks or currency offices. Our rates correspond to interbank rates, plus a low, fair service fee.