Do you always travel from one country to another? If yes, you understand that every country has its denomination, and you are required to exchange your cash to purchase items and pay bills to the place you have visited. Before then, exchanging currency used to be a headache. Not anymore.
Things have lessened up, and you can find brokers everywhere who can change your currency at a fee. However, before exchanging your currency, there are few things you need to keep in mind to get value for your money and check if you are getting the right service. This article has come right in time to give you these tips and enable you to have some knowledge concerning the whole exchange of currency processes. We are going to review the main six things you should mind:
1. Always avoid last-minute airport transactions
Unless on a last-minute rush, do not opt to exchange your currency at the airport. You may ask why? The reason is simple; you will not get value for your money. Being an easy to access stopover to exchange your cash does not mean a better one. Exchange rates at the airport are abnormal, and they will reap your money off. A study recently put airport exchange rates to be over 15% higher as compared to other places. Unless you are in a hurry and you don’t have time to get the services elsewhere, using them will create extra expenses into your wallet. You cannot bargain too, at the airport.
2. Research on Rates
Everyone likes getting value for their hard-earned cash. There is no exemption to this when it comes to exchanging your money to a foreign currency. Every currency vendor charges differently. Sometimes there is also fluctuation. You might get different pricing for different days. Always research to know who costs low and when is the right time to get the best exchange rates when exchanging currency. Experts recommend transferring your money a week before the travel date. With this, you can tell when the prices are low, and you can also choose the best vendor at affordable rates. Do not rush to exchange your money. You will end up ripped!
3. Compare Vendors and choose the best
Do not rush to one vendor to exchange your currency. Enquire and do some research either online or physically to know who has the best rates in town. Remember, it’s getting value for your money and not just an exchange. Getting the best vendor lets you get the best prices available and gives you bargaining power since when it turns to be a routine, you can always ask for a discount. It is still advisable to get a quotation from at least three currency vendors before making your final transaction.
4. Always follow the 30 – 70 rule
What does this mean in a layman term? This rule implies that you only exchange a limited amount of money, let’s say 30% and leave the rest in a forex debit card. Nowadays, most hotels, eating outlets, and shopping malls accept cards. You can make purchases using your forex card. Only carry a smaller amount in cash, which you can use to purchase items that can be bought through the card. With this, you don’t have to incur many expenses exchanging your currency.
5. Always get a bank authorization
Conmen and fraudsters are in the loose waiting for your hard-earned cash. What’s the solution? Check if your vendor has been authorized to carry on the business of exchanging currency. You can check on certification and also the legitimacy of the company before making your next move. By doing so, you will be able to secure your money and also enable you to get the best available rates.
6. Do not keep large amounts of foreign currency
Is it illegal keeping a different country’s currency? You may ask. Well, the answer is yes and no. You can keep small amounts of foreign currency as a remembrance but not in large quantities. Countries like India term keeping a large count of money from other countries an illegal practice, and you might face legal proceedings if found guilty. Always ensure you use as much of the converted currency and always exchange it back to your local currency when done with your trip.
This article has highlighted the best tips to keep when exchanging your currency, hoping it has given you enough insights to follow when making your trip outside your country. By following guidelines on this article, you will save on costs, get the best exchange rates, and know the dos and don’ts. In cash transactions, always ensure the person you are dealing with is genuine and carries out legal business.