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hammertoe

xRapid simulator

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What a fun experiment! :)

I'd imagine that the results are even better than this. Being an xRapid partner must mean that there are some reductions in trade fees don't ya think? 

Also, yea, you get 86 512 MXN with Transferwise, but you also have to include the transfer fees of 20.32 EU, which is ~442 MXN, meaning that it would be 86 072 MXN transferred after fees.

Fees are in the price, my bad.

 

 

 

Edited by RAINBOWDASH

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Information like this is vital.  Moneygram used to be valued at 8 billion dollars.  Now it's worth 700 million.  The reason is that it keeps pumping billions of dollars of every year into maintaining its incredibly expensive legacy system.  Hope may be lost for resistant corporations like Moneygram and Western Union who like many many others will be displaced. 

But for those willing to explore the savings and adopt new technologies now is the vital time for their survival.  I wish a large news outlet would pump out information like this. Seems like every tech company around understands this, but the exisiting bohemoths (especially here in the US) are too full of their own proud history to see the inevitable changes taking place beneath all of our feet.

Edited by xrphilosophy

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This is a brilliant tool, and was a good read!

Thanks for putting the time and effort into making this. It's good for both research performed by those who know how it all works, as well as easily explaining the process (and potential savings) of xRapid to those who don't fully understand it.

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2 hours ago, 010101 said:

How is TransferWise getting such a good rate? 

My guess would be that they have significant amounts of pre-funding in very specific corridors.

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Pretty neat little simulator.  It is very enlightening to the (rough) limitations of xRapid's current state based on available exchange rates.

Thank you for sharing!

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This is fantastic.  Thank you.  

Something to be aware of, when xRapid users calculate cost-savings, they may - as an understandable, but still disagreeable matter of course - include the "cost" of exchange rate volatility over the time period of a regular payment. Measured in days this can be a significant risk, and in retrospect it can look very bad - especially if the FX market concerned is consistently appreciating in your favour over time (say over a quarter) but you're locking in a "bad rate" at the beginning of a several day wait period for all your transactions during that quarter.  In most situations, the payment provider is not going to pass on significant savings (or profit) in this regard to the user - as it may be part of their profit model.  You're typically getting either a bad rate, or a really bad one.  As such, despite that in principle the risk should go both ways, it could be considered to be mainly a downside risk of payments that are anything longer than instant.  On the other hand, because successful xRapid transactions are effectively instant, this kind of "cost" becomes an irrelevant factor, and so can be counted in xRapid's favour that this risk is eliminated.  

However - and this is the important bit - the locked-in rate with xRapid is always going to be the initial rate anyway, so in most situations this aspect of "risk" is effectively identical as for a regular payment that takes days.  In principle, it's possibly a similar argument to "lost" sales versus piracy - the argument that because you didn't get something you likely couldn't have got anyway, you've suffered a loss (or in this case, a gain).  I've wondered if we need to watch out for this kind of claim of "savings" regarding xRapid, so it's very nice to see that this probably *wasn't* the case for Mercury FX's claim.  It looks much like they are just reporting the real, actualised cost saving transparently, and it's significant.  That's great to see, especially considering how undeveloped/low-liquidity these markets are at this stage.

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