As it name reveals a currency converter is a tool which will allow a speculator, a traveler or a currency trader to calculate and determine what an amount of money in an x currency is worth in a y currency. The reasoning why individuals use currency converters vary as there are different groups of people which use exchange converters for different reasons which might vary between clear speculation, determining what amount of money they will need during a trip to a foreign region or determining what a portfolio is worth in a foreign currency. Use the currency converter to calculate any amount of money to a basket of world currencies commission and cap free.
It is only realistic that the usage of a currency converter is both useful and valuable for a range of groups which might be using the actual tool for all types of different reasons. It might sound silly but the offerings of free currency calculators on the internet is rather limited and can even categorized as monopolistic as the xe currency converter has more or less managed to become the favorite choice for internet users as it offers exchange for not only the most popular and widespread currency pairs but additionally allows users to convert their money in speculative figures against valuable metals and commodities following with the trend of online currency trading which has today become more or less a very much diverse market which is not simply offering forex trading in currencies but is additionally offering trading in oil, silver, gold and futures.
Although a currency converter uses a simple mathematical formula you must understand that the rates at which it must calculate its variables should be able to feed from a live online server which calculates currencies based on the forex rates of any given time and not on delayed rates or bank rates which are in most cases attached a cap due to commissions which make the currency conversion less accurate in favor of the bank.
The online currency converter which you can use above is fed rates directly from the MT4 server at trading-point.com which therefore guarantees that the rates you reach when calculating 2 variables are clean of commissions and are 100% accurate and live as they are given to online traders, exchanging currencies online. The methodology used when calculating currencies with the free tool above is very much similar to the methodology used by the Oanda Currency Converter or the XE currency converter which both offers online trading services and are therefore able to provide clean, commission free rates based on server quotes and not based on bank rates which are inflated and therefore not accurate.
However if you are not using an online trading platform and you are using a currency converter for speculative reasons due to an upcoming travelling event you should take in note that banks do not offer the same rates as calculated above as they will firstly add a cap to the rates and secondly will charge exchange commission which in most cases will cost you a dear amount of money when exchanging currencies offline.
The xe currency converter is the basic product offered by xe.com which is today one of the highly trafficked websites related to currencies with a diversified portfolio of services ranging from clean currency conversion and expanding to online currency conversion services and even more currency trading. The website which was initially not related in any way with currency trading in a whole has today managed to become a worldwide attraction point therefore defining online currency conversion a term synonymous with its brand name (xe) despite the fact that its actual name had nothing to do with currency conversion during its launch back in 1996.
The second most popular website offering similar tools is the world famous oanda currency converter which has added up to the overall value of the oanda website which is today classified as the leading forex broker of the world. The Oanda currency converter has deviated from the usual offerings, offered above and by xe.com with an addition of a useful graph showing the trend of the particular currency pair therefore allowing users to understand if it might be the correct time period to perform a currency conversion if its not 100% needed due to travelling or other reasoning which might require immediate cash on hand in a foreign currency.
Yahoo and Google Currency Converters
The two major search engines have similarly understood the outrageous need for tools providing currency conversion and have therefore provided their own version of currency conversion tools which are equally useful and are gaining popularity by the day. It is worth mentioning that Yahoo has had a much more steadier and increasing popularity with finance related matters as Yahoo Finance is rated quite popular where the major search engine Google has not yet defined a steady place in the finance field.