Exchange offices are considered one of the most important economic units in the field of international trade. Some people think that the only role of exchange offices is to mediate currency exchange and convert one currency into another. They believe that an exchange office is merely a place where you can go to buy dollars, euros, liras, travel or government currencies, and so on, unaware that these are just the basic and simplest services provided by an exchange office.
In this article from Hafez Exchange Office, we will discuss in detail the services provided by exchange offices and explore their wide range; stay with us.
Types of Services Provided by Exchange Offices
Exchange offices offer a wide range of services to various groups of individuals, with the most important ones being:
Currency Exchange
This is the most basic and fundamental service that an exchange office can provide. People who intend to travel abroad or wish to invest in the currency market often need this service. Additionally, individuals involved in international trade or the tourism industry also require currency exchange services. This service is so fundamental that it forms the basis for all other services provided by exchange offices.
The exchange of international currencies depends on the time and the currency unit. Exchange offices perform the conversion based on real-time and daily rates, charging a small fee as commission. Therefore, for instance, the rate for exchanging dollars at an exchange office might be slightly higher than the officially announced rate.
International Transfers
The second important and key service provided by exchange offices is the transfer of international remittances. Exchange offices, as independent economic units with branches in various cities around the world, act as direct communication bridges that handle money transfers.
The operations of modern exchange offices are very similar to international money transfer systems and banks. If you need to send money abroad for any purpose or receive funds from foreign sources, exchange offices can efficiently handle this for you.
This service becomes especially valuable in specific conditions such as the current sanctions against Iran. Today, global sanctions have made direct financial interactions with most foreign countries impossible, making exchange offices the only legal solution for transferring money to or from abroad.
Individuals planning to migrate, those who have already migrated, international traders, those intending to invest abroad, and those involved in export and import activities widely use exchange office services for money transfers.
Cash Checks
Another common service offered by exchange offices is issuing and cashing traveler’s checks. Travelers who wish to carry a large amount of money abroad but do not want to carry a substantial amount of cash typically use traveler’s checks.
You can deposit the desired amount in either local currency or dollars into the exchange office’s account and receive a traveler’s check in return. You can then cash this check upon arrival at your destination and collect your money. Traveler’s checks usually do not fluctuate with currency exchange rates as they are issued directly at the destination rate (for example, you have a check for $892 rather than having to convert a check for 50 million tomans).
Since carrying cash on airplanes is restricted, individuals who wish to take more than the limit (over 5,000 euros) abroad often use traveler’s checks.
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Financial Consulting
Due to the extensive activities exchange offices engage in regarding currency remittances and transfers between various accounts, they have gradually evolved into commercial and economic units themselves.
Many exchange offices offer valuable services in financial consulting, including advice on the best timing for currency conversion, investment strategies in the stock market and cryptocurrencies, as well as international regulations. These services also encompass hedging tools, futures contract analysis, and various risk management solutions.
Tuition Payments and Bank Deposits
Given that Iran is under sanctions, we have no direct banking connections with foreign countries. International money transfer services such as PayPal or Western Union are also not directly accessible and can only be used with significant workarounds and risks. In this context, exchange offices function similarly to bank branches, addressing the needs of citizens.
Individuals planning to study abroad must handle expenses such as visa processing fees, advance tuition payments, and other costs within the country and include payment receipts in their immigration files. Exchange offices provide these services efficiently.
A reputable unit like Hafez Exchange Office, for example, maintains connections with top universities and educational institutions in Canada and other countries. Typically, through official university portals, they can process tuition payments using your student username and number.
Additionally, if you need to deposit money into a bank account abroad, exchange offices can manage this for you. Simply provide the necessary account information, deposit the exact equivalent amount into their account, and receive a deposit receipt (issued in your name or that of your legal representative) within 1 to 3 days.
These services are particularly useful for individuals planning to immigrate through investment or purchasing a business. In such cases, you do not even need to convert the currency; you can provide the exchange office with the equivalent amount in local currency, and they will handle both the conversion and the bank deposit.
Exchange offices perform these services completely legally and maintain regular and healthy interactions with foreign banks.
Issuance of Currency Cards
Some exchange offices issue currency cards for you. These cards function similarly to bank cards but with much more limited capabilities. This service is a very good alternative to carrying cash and allows for online reloading or reloading through exchange office branches abroad.
With these cards, you no longer need to worry about running out of travel funds, as you can reload them from your Iranian bank accounts at any time and use them anywhere in the world.
This service is particularly useful for individuals traveling abroad.
Buying and Selling Cryptocurrencies
Today, exchange offices have also added a new service to their offerings: cryptocurrency trading. Many exchange offices focus exclusively on cryptocurrencies and have completely shifted their operations to online platforms.
However, many reputable exchange offices, such as Hafez, have also begun operating in the cryptocurrency space. With these services, you can convert your money into cryptocurrency and manage international transfers.
Cryptocurrencies are easily transferable, have lower transaction fees, faster transaction speeds, and due to their high volatility (in some coins), they have become a profitable stock market. Having the support of an exchange office helps you take advantage of these new currencies with greater peace of mind.
Real-Time Exchange Rate Updates
International currency prices are constantly changing. Some exchange offices offer very effective online platforms that display these price fluctuations in real-time. Especially exchange offices with platforms for digital currency exchanges and active in this market are precise in providing real-time foreign currency prices.
Instant International Remittances
The reality is that transferring money abroad and sending international remittances typically takes several business days. Even exchange offices, which are among the fastest channels for money transfer, usually need at least 24 hours to complete the process.
However, some reputable exchange offices offer special services for instant international remittances. They can complete the transfer to foreign accounts within a few hours, much like a domestic bank transfer. Naturally, the fees and costs for these expedited remittances are higher than standard rates.
Other services provided by exchange offices include issuing international bank guarantees, cashing interbank checks, buying and selling gold, renting safe deposit boxes for storing valuables, currencies, and securities, and opening various types of foreign currency accounts at international banks.
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Advantages of Using Exchange Office Services for Currency Transactions
Keep in mind that there are many ways to transfer money abroad or receive it. Under normal circumstances, you can use banks for this purpose or international money transfer services such as MoneyGram, Western Union, Mastercard, and others.
Apart from direct banking connections, access to these intermediary services is also possible in Iran, but it often involves circumventing sanctions, making them somewhat risky. Therefore, they are generally used for smaller payments rather than large remittances for trade or investment.
In this context, exchange offices can be a more ideal option, as they operate completely legally (with licensed units in both the origin and destination countries) and offer a wide range of services.
Here are the key advantages of using exchange office services for various currency transactions:
Competitive Rates
Exchange offices charge a conversion fee for exchanging currencies (whether directly or during money transfers). As a result, the exchange rate at the exchange office is slightly higher than the official market rate.
This price difference is not unique to exchange offices; even banks and international money transfer services charge conversion fees.
It is important to note that each exchange office can set its rates based on its discretion, standard practices, and the quality of its services. However, exchange rates at exchange offices are usually very competitive and economical to attract customers, especially traders involved in large international transactions.
This makes the rates offered by exchange offices more competitive compared to other international money transfer systems, making them economically more advantageous.
Speed and Efficiency
Exchange office services for currency conversion and remittances are very fast and efficient. Today, exchange offices can transfer funds abroad faster than banks! A process that takes 5 to 7 business days with banks can be completed in just 2 to 3 business days using exchange office services.
This is particularly important for individuals who are in a hurry for foreign payments or dealing with specific deadlines.
Access to Various Currencies
Exchange offices typically have good access to a wide range of international currencies and are not significantly limited in this regard. You can use exchange office services to convert your money into almost any other commonly used international currency, without needing to visit multiple financial institutions.
Providing Expert Advice
Many exchange offices offer excellent advisory services regarding the best times for currency conversion, investment opportunities in the market, and the best digital and traditional currencies in terms of financial prospects, among other areas. They can guide you in these matters effectively.
Credit and Customized Services
One of the significant advantages of exchange offices is the provision of credit and personalized services to valued customers. Individuals who have extensive dealings with an exchange office, especially those using its services for international trade, can benefit from special privileges.
One of these privileges is the credit that an exchange office extends to its clients, allowing them to conduct currency exchanges based on this credit. Top-tier clients of exchange offices can buy and sell foreign currencies according to their credit limits and pay for them later.
(A notable example: Some clients with high credit at exchange offices can place orders to buy large amounts of foreign currencies simply by contacting the exchange office. They can then take advantage of market fluctuations to sell the currencies before settling the purchase amount. Thus, they can execute profitable currency transactions without immediate payment, while also covering the exchange office’s fees.)
On the other hand, exchange offices can provide customized services tailored to the specific needs of their clients. Some individuals have unique procedures for their international transactions and must adhere to specific regulations. In such cases, the exchange office can adjust its services to meet the client’s requirements.
Investment Security Guarantee
Reputable exchange offices operate with official licenses and, although independently, they function as legal businesses. Thus, you can confidently entrust your money and investments to them, knowing that they will reach their destination with complete security.
However, like banks, exchange offices are always at risk of cyber attacks. Nevertheless, a reputable exchange office like Hafez Exchange has implemented appropriate security measures to mitigate such risks. Additionally, you can further reduce the risk of currency transfers to zero by insuring your investment.
No Need for a Bank Account
You do not need a bank account to use the services of exchange offices. This is especially important for individuals who, for various reasons, do not want or cannot have bank accounts.
Transparency in Fees and Charges
Exchange offices charge fees for currency conversion and money transfers. Part of this fee is related to currency conversion, while another part is due to the costs of transferring money abroad. When transferring a dollar remittance, the exchange office provides a specific and uniform fee that covers all these costs.
However, some disreputable exchange offices might charge hidden fees. They might initially quote a very low and attractive fee but compensate for it through the exchange rate. In other words, they impose costs automatically without full transparency, often deducting it from your principal amount.
In contrast, reputable institutions like Hafez Exchange maintain complete transparency in their fee structure and do not charge hidden costs. Hafez calculates all fees, including conversion rates and transfer costs, before executing the remittance and clearly communicates them to you.
Transparency in transactions is crucial when choosing a good exchange office.
No Limits on Money Transfers
For some people, this is the greatest advantage of using exchange offices. When using international money transfer services like PayPal, Western Union, or SWIFT, you often face daily transfer limits (usually a maximum of $10,000 per day). Even withdrawing cash from a country is restricted to €5,000!
In contrast, exchange offices impose no such limits on currency remittances and can transfer very large amounts without issues. This is especially important for individuals engaged in international trade.
Important Considerations When Choosing an Exchange Office
When converting and transferring currency, the first step is to select a trustworthy and reliable exchange office. Remember, you are entrusting your money and investments to the exchange, so it is crucial that you can trust them. The most important factors to consider when choosing an exchange office include:
- Reputation and Credibility: Does the exchange office have a solid reputation and is it well-known among people? What do your acquaintances, former clients, and reviews say about it?
- Experience: Check how many years the exchange office has been in operation and what achievements it has reached. Generally, an older exchange office is considered more reliable.
- Security: Does the exchange office guarantee the security of your investment? What protocols does it have in place to protect your money? If your investment is stolen by hackers while in the exchange’s custody, what guarantees do they provide?
- Official Licenses: A good and reputable exchange office will definitely have official licenses from legal authorities both domestically and internationally, and it should not delay in providing these to you.
- Fees and Commissions: The best exchange office is one that is transparent about its fees and charges the most cost-effective rates.
- Range of Services: Exchange offices can offer a wide variety of services. The best exchange office is one that provides all the services you need and does not require additional services from other entities.
- Accessibility: The best exchange offices have good access to various parts of the world and can convert your money into any international currency and remit it to any city globally.
Hafez Exchange is one of the most reputable and experienced Iranian/Canadian exchange offices, operating in this field for many years. This exchange office is completely transparent with its clients and conducts all transactions without any hidden fees. You can confidently use Hafez Exchange’s services for tasks ranging from paying tuition fees and bank deposits to exchanging cryptocurrencies, and be assured of the security of your investment.
Also read: Best banks for newcomers in Canada in 2024.
Final Thoughts
The range of services provided by exchange offices is diverse and extensive. These economic units not only handle currency conversion but also engage in various activities such as sending different types of international remittances, managing cross-border payments, assisting with international trade, and exchanging cryptocurrencies, among others.
Today, if you need to establish any form of economic connection with foreign countries and transfer or receive money, exchange offices are your best option. Hafez Exchange, as one of the most reputable entities in the field, offers all the financial services you need for international transactions.
