Using limit orders on currency trades

A limit order can help you save money on future currency investments.

Last updated:

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

Know which way the market’s moving? Then you may want to start placing limit orders. These “hedging” tools can help you get better deals on currency trades if you make the right predictions.

What is a limit order?

With a limit order, you set instructions to prevent your transaction — a forex trade or money transfer, for example — from being executed until the market price reaches your specified exchange rate.

How do limit orders work?

A limit order allows you to guarantee the price you’ll buy or sell a currency at. There are two types:

  • Buy limit orders. Placing a buy limit order allows you to set a price you want to buy your desired currency at. Once the currency drops to your specified price, the exchange will be made automatically.
  • Sell limit orders. A sell limit order allows you to set a price you want to sell the currency you currently have at. Once the rate rises to your specified price, the exchange will be made automatically.

Limit orders: An example

Let’s say the euro-to-dollar currency pair is currently at EUR/USD = 1.1 (meaning 1 euro buys 1.10 US dollars). You want to buy euros with your dollars, but you want to wait until the euro becomes a bit cheaper.

In this case, you could place a buy limit order at EUR/USD = 1.08. When the market reaches that exchange rate, your brokerage executes your buy limit order, getting you euros at a better price.

Compare providers that can help you set up limit orders

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
$0 1 - 2 days USD 0.00 25.434 MXN 127,171 Save your time and money with XE Money Transfer for business Go to site Show details
$1 1 - 2 days USD 0.00 25.179 MXN 125,893 Great rates, and fast, efficient payment processing in most currencies Go to site Show details
$1 3 - 5 days USD 7.00 25.332 MXN 126,482 Enjoy high maximum transfers into more than 20 currencies, while saving up to 90% over local banks. Go to site Show details
GBP 5,000 Same day USD 0.00 25.306 MXN 126,532 Increase business efficiency with zero transaction fees and same-day transfers. Go to site Show details

Compare up to 4 providers

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
USD 1,000 1 day USD 0.00 25.306 MXN 126,532 No-maximum limit transfers with competitive exchange rates for 100+ currencies. Go to site Show details
GBP 1,000 1 - 2 days USD 0.00 25.306 MXN 126,532 Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
For larger transfers, get no transaction fees and no maximum send limits.
Go to site Show details
USD 1 1 - 2 days USD 0.00 25.447 MXN 127,235 Offering no maximum and no minimum limit transfers with $0 fees. Go to site Show details
USD 0 1 - 2 days USD 1.99 25.051 MXN 125,204 Special offers like free transfers and better exchange rates available for new customers.
Quick, affordable transfers around the world with both express and economy options.
Go to site Show details
USD 1 1 - 2 days USD 50.00 25.562 MXN
126,531
Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details
EUR 1,000 1 - 2 days USD 10.00 25.306 MXN 126,279 Use TransferMate to help you send money to almost any country around the world for a small fee. Go to site Show details
USD 1 Within an hour USD 3.99 25.455 MXN 127,171 Use promo code 3FREE to send your first 3 transfers with no fee. Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up. Go to site Show details

Compare up to 4 providers

Pros and cons of limit orders

Pros

  • Allows for more hands-off trading. Once you set your limit order, it’ll be fulfilled automatically when the currency reaches the set price — even if you’re not online to make the trade.
  • Increases likelihood of making a profit. You can choose to set limits that will turn a profit when your order is filled. But if your order isn’t filled, you could need to adjust your limits.

Cons

  • Orders aren’t always filled. If your chosen investment never hits the price you want, the order will never be filled.
  • Can reduce potential profit amounts. For example, if you set a sell limit order and it’s fulfilled but a currency continues to skyrocket, you could lose out.

What else should I know?

A limit order is different from a stop-loss order. With a limit order, you’re looking for a price that’s better than your target price (whether you’re buying or selling). On the other hand, a stop-loss order prevents executing a transaction at a price that’s worse than your target price.

Bottom line

Limit orders are one potential tool that can be used to help you trade foreign currencies and other investments. But they’re not the only choice. If you’re new to trading, learn about hedging options and consider consulting a professional.

Frequently asked questions

Read more on this topic

  • Remittance statistics We've unpacked the most recently available data from the World Bank to get an idea of how much money is being sent around the globe.
  • Best ways to send money online Navigate the world of sending money domestically and internationally with our hand-picked list of popular services.
  • XE vs. OFX money transfers Check out this side-by-side comparison of XE and OFX to find out which provider offers the best value on international money transfers.
  • Alternatives to InstaReM Find the best alternative websites to InstaReM for online money transfers.
  • XE vs. Western Union We compare XE's and Western Union’s fees, exchange rates and transfer speeds side by side.
  • Remitly vs. PayPal Compare a well-known payments giant to the newer Remitly and see which one can give you a better deal.
  • Remitly vs. TransferWise Remitly and TransferWise’s fees, exchange rates and speeds compared side by side.
  • How to send money to Guinea Compare the services that send money to Guinea. Find out how to get the best value for your money, how long it takes and what to look out for.
  • Best places to exchange currency in Sydney Your guide to currency exchange services in Sydney, including where to find the best exchange rates and lowest fees.
  • Best places to exchange currency in Winnipeg Looking for the best deal on Canadian dollars in Winnipeg? Compare popular services and access handy tips to get the most out of your next transfer.

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site