How can I average $2,500 in exchange fees when I see some competitors offering exchanges for as little as $400?
(A) Most QI’s make the bulk of their income on an exchange from the interest on escrow, not from the exchange fees. With rising interest rates, intermediaries want to do more exchanges and increase their funds in escrow. By offering lower fees, the public thinks that they are getting a bargain. Some QI’s also offer low fees but only for the sell part of an exchange; each purchase can then cost additional fees, and there can even be hidden wire transfer fees of up to $100 per wire. No one is doing an exchange for only $400.
