How do these Foreign currency shops make any money?

[Pat Vegas]

For example if I change say 500 quid and their rate is 1.54
and the real rate is 1.52 they are only making .02 for every quid.

How do they stay in business?

[Jake]

[Pokster]

[Monty91]

[Supermac1976]

[Snin]

plus cometimes comm and money transfer fees

[pjlincs]

you to buy your dollars back!

They will also have forward positions and hedges (e.g. oil that is traded in US dollars).