Buy or sell? Know which applies to you
Understand the difference between buy and sell in forex and how to know which price to compare for your situation.
The perspective trick
When you see exchange rates from a bank or exchange house, the terms "buy" and "sell" are written from the financial entity's perspective, not yours. This confuses many people.
- Buy (Compra): The entity buys your dollars. You receive colones.
- Sell (Venta): The entity sells you dollars. You pay colones.
In other words, when you want to buy dollars, you should look at the entity's sell price. And when you want to sell dollars, you should look at the buy price.
What do I want to do? The quick guide
| You want to... | Look at the... price | You want the... |
|---|---|---|
| Buy dollars (pay in colones) | Sell | Lowest |
| Sell dollars (receive colones) | Buy | Highest |
This table is the key to never getting confused. Save it as a reference.
Common situations
Traveling abroad
You need dollars for your trip. In this case, you're buying dollars, so you should compare sell prices across entities. The lowest sell price saves you money.
Example: To buy $500:
| Entity | Sell Price | You pay |
|---|---|---|
| Banco Nacional | ₡481.00 | ₡240,500 |
| BAC San Jose | ₡480.50 | ₡240,250 |
| ARi Casa de Cambio | ₡477.50 | ₡238,750 |
Difference between the most expensive and cheapest option: ₡1,750 — just by choosing where to buy.
Receiving salary or remittances in dollars
If you're paid in dollars and need colones for daily expenses, you're selling dollars. Compare buy prices across entities. The highest buy price gives you more colones.
Example: To sell $500:
| Entity | Buy Price | You receive |
|---|---|---|
| Banco Nacional | ₡467.00 | ₡233,500 |
| BAC San Jose | ₡467.50 | ₡233,750 |
| ARi Casa de Cambio | ₡473.00 | ₡236,500 |
Difference: ₡3,000 in your favor by choosing the best option.
Paying dollar-denominated debt
If you have a loan in dollars (mortgage, credit card, vehicle), you need to buy dollars each month to make payments. The logic is the same as traveling: compare sell prices and look for the lowest.
The most common mistake
Many people assume that the entity with the "best exchange rate" is good for both operations. That's not the case. An entity can have an excellent buy price but a mediocre sell price, or vice versa.
That's why it's important to know exactly which operation you'll perform before comparing.
What if you need both operations?
If you regularly buy and sell dollars, what benefits you is finding the entity with the lowest spread. The spread (difference between buy and sell) reflects the total cost of using that entity in both directions.
A low spread means both the buy and sell prices are close to the real market exchange rate.
Practical tip
Before going to exchange currencies, clearly define:
- What operation will I do? Buy or sell dollars
- Which column do I compare? Sell (if buying) or Buy (if selling)
- What's the best price? The lowest for sell, the highest for buy
On ARiSabe, the comparator automatically shows which entity is "Best for buying" and which is "Best for selling," so you don't have to do the analysis yourself.