Since the Mexican peso is volatile right now, sometimes the Exchange rates in stores (in Mexico) is different from sending it with online services.

So if i use an Online service to sent Dollars to a Friend Mexican account and he sends the same amount in dollars back and he profits with the exchange rate:

is that legal (both US and MX)?

If he sends me a "share" of the profit is that legal too if I declare taxes over the profit (In US)?

  • 4
    This seems that it will require an attorney with experience in international law - specifically in the US and in Mexico, as you are strictly asking if this is a legal question and not if it is otherwise possible or advisable. I can say "it sounds like it should be legal, though I doubt it will work as you hope" - but that sort of currency exchange arbitrage across two countries and using an online service leaves the situation hard to determine from a non-expert legal standpoint.
    – BrianH
    Commented Sep 9, 2016 at 21:10
  • 2
    Banks usually charge a currency conversion fee lol. Good luck.
    – 8protons
    Commented Sep 10, 2016 at 2:43

1 Answer 1


It is certainly legal to transfer money between people, no matter how often, as long as the money is not originally from illegal sources.

If you are gaining in the process, you need to pay taxes on your (net) gain, as on any income; but as always, taxed income is still income.

Consider the accumulating transaction cost, the inherent risk (of your friend keeping the money), and the risk of the exchange rate going the other way; but otherwise it is a simple arbitrage business.

There are thousands of people who do that all year long at stock exchanges and money markets; you might be able to do it more efficient there, and you don't need a 'friend' on the other side for that.

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