How does CurrencyFair Work? Good Question.
Below is a very simple example of how CurrencyFair Works…
John wants to send money from the UK to Australia. John sends money locally within the UK to CurrencyFair’s UK bank account. Mary is in Australia and wants to send the same amount of money in the opposite direction from Australia to the UK. She transfers it to CurrencyFair’s Australian bank account.
CurrencyFair then gets John’s money (in British Pound) and transfers it to Mary’s UK destination bank account and transfers Mary’s money (Aussie Dollar) to John’s destination Australian Bank Account.
This perfect example as the money is equal on both sides. It gets more and more complex with millions of customers over dozens of countries and currencies.
CurrencyFair explains this in a different way here.