If you want to truly understand why Swyftx is saving you time and money, you MUST take time to read and understand this article.
Swyftx has taken a unique approach to handling Fiat currencies deposited on the platform, with the intention for this approach to minimise costs and trade fees for it's users. This is done by operating all trades on the back-end using USD.
All AUD deposited to Swyftx will be converted to a USD equivalent balance using the AUD/USD indicative rate show on the AUD deposit screen. The same, inverse, applies for withdrawals.
If you were to convert AUD to USD with your bank (and send to an offshore exchange) there are foreign exchange (FX) costs incurred, usually in the realms of about 5-6%. Thanks to our corporate banking relationships, we can exchange your AUD to USD incurring a FX spread of only 0.6%. By converting your deposits to USD once when you deposit and once when you withdraw, it means you do not have to pay this cost on every single trade. Other Australian brokers charge you in the realms of 3-4% every trade in the way of large fees and spreads to cover these costs.
I can hear what you're thinking, "Ahh but exchanges like BTC Markets don't require me to convert to USD, I can deposit AUD and pay no FX spreads" - This may be the case, however due to the lower prices we provide on our crypto assets this FX spread is negated, and in many cases will net you more crypto!
When you view the price of the crypto assets on Swyftx, the AUD values shown are INCLUSIVE of the FX spread incurred on a deposit. This means you don't have to account for the FX cost when comparing Swyftx to other exchanges, we've already worked it into the display price to make things as easy and transparent as possible.
Additionally, you only incur the FX spread once, every subsequent trade is saving you more and more. When considering the actual Buy/Sell rate that Swyftx offers, as well as its lower fees, smaller spreads and billions in daily trade volume, it actually still ends up better in every way to trade with us!
Our platform allows toggling of the base trading asset between USD and BTC with more fiat and crypto bases to be added soon (including ETH). This gives you the added flexibility to trade your account balance on the most liquid pairs in BTC (a common practice) or USD (global market prices) regardless. Read more about these options here.
Remember global market prices of just about anything are dictated by the largest volumes and biggest economies - in the case of Digital Currencies this is USD.