About Exchange

[Nancy Deimatov]

Hi. 

How does the exchange rate works? And does anybody else thinks its getting too expensive to exchange lindens? Ive been withdrawing money since 2012 and now its almost 20$usd of gap between the right amount it would be/the amount after the fees are calculated. Plus the 3% over the credit processed. Who controls that, is there anything related to real life economy? It seems like everytime i withdraw im getting less money.

For example, selling 70k lindens would be 280$USD, but with the fees it goes to 270$. After processing the credit it takes something around 4$usd. And on paypal the currency is even lower (i have to convert USD to my currency) which leaves me with a gap of almost 20$USD.

Not that im complaining cause i dont want to pay the fees, its a service LL and Paypal provides and therefore needs to be paid. But the fees has increased a lot. It used to be 5$usd total until last year. 

 

xx

Edited August 9, 2017 by Nancy Deimatov

[Rolig Loon]

As with any currency exchange in RL, the exchange rate fluctuates with demand.  If there are more L$ being put into the market by sellers than there are people willing to buy them, the price drops.  If there are more willing buyers than sellers, then the price goes up.  It's simple supply and demand.  It is true that since Linden Lab owns the exchange, it can act as a central bank would in RL to stabilize the market if it starts to swing too wildly.  You can study some details about historical fluctuations by looking at data in gridsurvey.com .

[ChinRey]

7 hours ago, Nancy Deimatov said:

For example, selling 70k lindens would be 280$USD, but with the fees it goes to 270$. After processing the credit it takes something around 4$usd. And on paypal the currency is even lower (i have to convert USD to my currency) which leaves me with a gap of almost 20$USD.

Not that im complaining cause i dont want to pay the fees, its a service LL and Paypal provides and therefore needs to be paid. But the fees has increased a lot. It used to be 5$usd total until last year.

The transaction fee when you sell Lindens for dollars is a fixed 3.5% of the total amount. That hasn't changed for as far as I can remember.

So, 3.5 % of 280 dollars, that's 9.80 dollars and you're left with 270.20.

The fee for transferring your dollars from LL to PayPal was changed recently. The rate is still 1.5% and the minimum fee is still 3 dollars but the maximum fee was increased from 15 to 25 dollars. That change only affects transfers of over 1000 dollars though. If you have 270.20 dolalrs to withdraw, the fee will be 4.05 dollars both according to the new and the old rates.

I can't say anything about the PayPal fees of course. That's a bit beyond us and Linden Lab to control.