Small storefront currency exchange

Tourists, international students, business travelers, immigrants sending or carrying cash, and small businesses that deal in foreign cash.

The spread between the rate you buy currency at and the rate you sell it at, plus small fixed fees on some transactions. You also need cash on hand to serve customers, so the working float is a large part of your cost.

• Careful with cash and numbers
• Spotting counterfeit notes
• Customer service
• Following compliance procedures

• Exchanging currency may make you a money services business (MSB). Check federal FinCEN registration and anti-money-laundering program rules with the IRS and FinCEN
• Check your state's licensing board, since many states require a license or registration for currency exchange and rules differ widely
• Customer ID, record keeping and reporting of large or suspicious cash transactions
• Check your city or county business license, zoning and lease terms for the location
• Robbery, counterfeit notes and exchange-rate swings can wipe out thin margins. Check what insurance, security and cash handling you need
• Banks may close accounts for cash-heavy businesses, so ask about banking access early

Estimates suggest startup costs of typically around $25,000 to $100,000, depending on the location and lease, your starting stock of foreign cash, security, insurance and compliance set-up. It is a regulated business, so allow time and budget for set-up.

Monthly revenue is typically around $3,000 to $15,000, depending on your location, foot traffic and the margin in your rates. Exchange-rate swings, counterfeit notes and robbery can affect thin margins, so check what protection you need.

Exchanging currency may make you a money services business, so check federal FinCEN registration and anti-money-laundering rules with the IRS and FinCEN. Also check your state's licensing, customer ID and record keeping, city or county licensing and zoning, and banking access.