Do you again travel to a destination where you cannot pay in Euros? Make it not a problem thanks to these tips to get the best currency exchange for your money.
You have saved money on flights and in your hotel room by booking through online and now you need the last detail to start traveling: money in the currency of the country or countries where you will spend your vacations. Discover 10 ways to get the best offer in the currency exchange.
Here the content of currency exchange
- Meet the forex market lingo
- Investigate the currency you are interested in changing
- Check the exchange rates
- Check different suppliers
- Negotiate a possible discount with the office or bank
- Change in the physical site or online?
- Beware of charges by credit card
- Traveler’s checks
- Prepaid cards
- Do not believe ‘offers’ that do not exist
Here we explain 10 tips to get the best price for currency exchange
1. Meet the forex market lingo
The complicated foreign exchange market has its own complex jargon. Learn to not take any surprises when you go to change money for the trip of your dreams.
Sales rate: what you get when you change Euros. Purchase rate: what you get when you change the foreign currency that you have left over. Interbank or bank to bank: a wholesale exchange rate that banks use among themselves. Continue reading Forex trading guide for beginners
2. Investigate the currency you are interested in changing
The currency exchange rate of dollars or pounds sterling is easy to understand, but not the same with some foreign currencies. For example, the Moroccan dirham cannot be exchanged internationally, that is, you can only get it once you are in the country. Or Cuba, which has two currencies: one for tourists and another for locals. Some states in Southeast Asia, including Cambodia, use US dollars as a second currency, but make sure that the tickets do not have any type of break or defect because they will not accept them at many tourist sites.
3. Check the exchange rates
Take a look from time to time at one of the online converters. Make a test with the amount of money you would like to change in the chosen currency and get an idea of how much you would receive. The currency fluctuates almost daily, so the amount will never be the same, but it will help you get an idea. Keep in mind that there are many factors that cause the price of the currency to falter from one day to the next, from unemployment figures to economic forecasts or interest rates.
When is the best time to change the currency? Start looking at least one month before your holidays and buy when the rate is rising, that is, when the euros are stronger and you can get more pounds, dollars or other currencies. This time is also advisable if you are going to order your money in a bank since many times it takes weeks to get the requested currency. And, since you go to your bank, do not stop asking them the possibilities of that currency going up or down in the following days.
4. Check different suppliers
Currency exchange rates not only fluctuate from one day to the next but also from supplier to supplier. The prices are not the same and it is important to check the best exchange rates before buying.
Where is it better to change currency? There is no infallible place when it comes to obtaining foreign currency, so you should investigate thoroughly and compare. Never wait to get to the airport or the hotel, as they usually charge very high commissions. If you choose a credit or debit card for your purchases abroad, be sure to pay in local currency to avoid the so-called ‘dynamic currency conversion rate’ that companies will apply to convert your purchase in euros. Use a web-like Money Changer to get the best exchange rate.
5. Negotiate a possible discount with the office or bank
It is possible to negotiate a discount with specialized offices or banking entities, especially if you are interested in exchanging a large sum of cash. As an example, you can often get an extra 0.5% on the advertised rate if the amount you want to change is ‘large enough’.
6. Change in the physical site or online?
Many forex providers offer better rates through the Internet. Plan in advance before traveling and ask for money online to pick up at a branch or post office.
7. Beware of charges by credit card
Although it is one of the easiest ways to get money abroad, many credit cards apply additional fees that can scare you when you check your bank statement days later. Each card provider applies a different policy, but the rates usually start around 3 euros.
On the other hand, if you intend to use a credit card outside of Spain, you should know that some banks and companies offer cards with travel incentives such as zero rates for transactions abroad and low-interest rates on withdrawal of cash.
8. Traveler’s checks
Those of American Express, available in six currencies and with some limitations. Traveler’s checks can be replaced if they are lost or stolen, and are much safer to carry than cash.
9. Prepaid cards
If you are one of those who prefers not to travel with so much cash, your solution is a prepaid card, since the money will be ‘blocked’ at the exchange rate of the day you bought the card and you will not have to worry about whether it fluctuates. Charge the card with money before leaving Spain and use it as a debit card. Like travel checks, they have some limitations, including commissions for purchase or hidden charges, so be sure to read the fine print before getting hold of it.
10. Do not believe ‘offers’ that do not exist
Travel money providers routinely offer ‘0% commission’, ‘best city rates’ or ‘best-guaranteed rates’. Do not trust because, often, it is a hoax. 0% commission sounds great, but they can hide other types of hidden fees. As we have warned you, it is best that you look, compare and do not buy until you are sure of getting the best change for your money to travel. Do not be fooled by marketing!
And you? Do you have a trick to get the best offer in the currency exchange? Tell us in the comments!
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