If you are exchanging one currency for another, you will almost always end up paying a tidy sum as a conversion charge. In your trip abroad, saving money on currency conversion is as critical as getting a reasonable tour package – maybe more. So, it is essential that you follow some suggestions to save money on conversion charges to obtain foreign exchange. The following tips should help you in doing so.
Get Proper Knowledge About The Exchange Rates
Foreign money exchange rates are not fixed. They keep going up & down continuously. Also, there will be many variations in the rates which different money changers are offering. So, you need to keep a tab on these fluctuations & differences. You must select the right forex money exchange facilitator & do some good bargaining. You’ll be able to get a good rate and save on the charges.
Online forex money exchange facilitators have made the job of searching & comparing even easier. They also send alerts via text/email, which enables you to freeze the particular amount of your choice for a certain period, by paying a small fee.
Avoid Getting Foreign Exchange At Airports
Foreign exchange rates at airports are almost always the highest among all options. Therefore, avoid this option as much as possible. Carry enough foreign exchange with you so that you can reach the city and visit a currency exchange dealer.
Make Sure That You Select The Right Currency
You are heading to a particular country, and, normally, you would like to carry that country’s currency with you. But this may not be a good idea at all times. E.g., currencies like Iraqi Dinar or Vietnamese Dong or Laos Kip are not readily available in other countries. So, you will need to shell out a hefty conversion fee if you plan to exchange your currency for any of these.
In such a case, you should carry a globally-accepted currency like USD or Euro to your destination, and then exchange it with the local currency. Do some research as to where you can get the best foreign exchange conversion rate in your destination city.
Opt For Forex Cards
This is among the most economical options for you. You can get rates very close to market rates, in this option. Your bank will issue this card against a charge, and load it with foreign currency. You can swipe this card at any outlet abroad and even use it in ATMs. You will need to pay a charge if you load the card with one currency but use it in another country (e.g., loading it with GBP & using it for USD), but that charge is nominal.
So, it is advisable to use a multi-currency forex card. However, the flip side is that a forex card is available in 15-20 main currencies of the world, so this option may be expensive for you if you plan to use it in a country outside this range.
Watch Out For Hidden Charges
Some banks and/or foreign money exchange dealers might offer a low conversion fee but will have several hidden charges. Thus, you end up paying a hefty conversion fee in total. So, before you decide to exchange your currency, ask for a full break-up of all the fees & charges, so that it’s all there in front of you in black & white.
Use Credit Cards Abroad If Possible
Some international credit cards may waive off foreign transaction fees, while some others will not. Still, the fees will be less than what you will pay if you convert cash. Most countries accept Visa & MasterCard, so use more of it and less of cash when you are abroad.
So the bottom line is – do thorough research of all available options before you obtain the foreign currency. The online platform will help you to find out various dealers & their comparative rates. Negotiate well with your own bank as well, and you will save a substantial amount on currency charges for sure.