How to Get the Best Foreign Currency Rates While Traveling Overseas
“How Foreign Currency Rates Work? How to get a good currency rates? What is the value of a good foreign currency rates?”
There are many steps to getting the best foreign currency rates when travelling overseas. It begins by doing your research. Check out online and printed material for foreign exchange, local economic conditions, and travel tips. If a local area is struggling economically, it might offer you best foreign currency rates. Compare the local currency price over a year to see how dramatically the currency exchange rate changes.
The foreign currency rate research will provide you with a solid reference point. People will be less likely to scam you when they realize that you are knowledgeable about foreign exchange rates. As you travel, continue to check the currency exchange rates in the newspapers or on the Internet.
Airports, ferries and trains
Airports, train stations, and ferries offer convenience, but usually have slightly higher foreign currency rates. Another option is to check out the airport rates on the Internet; you can order the local currency online for a better rate and pick it up at the airport – combining convenience and price. Train stations and ferries will tend to have more limited hours of operations.
Exchanging your home currency for local currency before you travel is one viable option. In the country you visit, there will also be foreign exchange banks that serve individuals and businesses that need foreign exchange services.
Foreign Exchange Brokerage
Foreign exchange brokerage firms buy currencies in large volumes at attractive rates. These highly-trained professionals are experts in trading international currencies. They usually offer best foreign currency rates than banks, but also have higher fees.
Different Foreign Exchange Rates
You might run into a number of different rates: “official,” “local,” “market,” “buy,” and “sell.” Be careful, some shops will quote one rate to attract your attention, then they will tell you that you only qualify for the highest foreign currency rates.
When there is a “local” foreign exchange rate that is different than the government’s “official” rate, you can usually get a better deal. Some good rates only apply when large amounts are exchanged.
Going through a bank for the foreign exchange rate can offer the best rates and lowest fees. When consumers use a debit or credit card, their banks will give them the same foreign currency rates that banks charge each other. Some banks and credit card companies will charge fees of up to 3% on all purchases made with the currency.
Before you travel, do your research into your financial institution’s most current policies, rates, and fees for exchanging foreign currency.
Some travelers purchase a debit card, special credit card or cash passport card for voyages overseas with low or no fees on foreign exchange. These are safer than cash. Be careful, because these cards have special rules. You can avoid some ATM fees by using your credit or debit card for large purchases – housing, travel and food.
Automated Teller Machine (ATM) networks have grown worldwide. If you have an account with a major bank that is part of an extensive network, then you might be able to withdraw the local currency from the ATM wherever you go. This will allow the bank at home to perform the conversion.
The money you withdraw will be in the local currency. It is wise to withdraw larger lump sums because there might be a 1 to 3% ATM fee charged. There may also be a “daily withdrawal limit.”
You could check out ATM, credit card, or airline websites to see if their facilities are available where you go. There are frequently affiliations, combinations and linkages to large networks of financial services between these groups – for example, the American Express Qantas credit card.
Discuss all relevant rates and policies with your bank before you travel.
Exchange Rate Calculator
The Exchange Rate Calculator will help you calculate the “most competitive market rates” by finding the midpoint between buy and sell rates for large transactions. Exchange rates can change rapidly.
Having a small calculator can help you figure the foreign currency rates; it will also make you look more serious to others. You can also go onto the World Wide Web to find an Exchange Rate Calculator.
Tips for Getting the Best Foreign currency rates When Travelling
Getting a small amount of the local currency before you travel makes sense for the local airport, bank, or exchange service might be closed when you arrive. You may need an emergency cash source for purchasing something en route: a snack, umbrella, or taxi ride.
Plan your budget ahead-of-time. Large cities will offer more options for foreign currency exchange. You will probably need to carry some local currency to smaller towns due to fewer foreign exchange options. Avoid exorbitant fees by planning ahead.
Local taxi drivers and hotel employees might know the best places for foreign exchange. If you must exchange one currency for another overseas, make sure you have a well-known about foreign currency rates that will be accepted in the locality you are visiting. Sometimes, wise locals might prefer to actually hold your well-recognized, “more convertible,” AUD rather than less-popular local currencies; they might give you a better rate.
Some currencies are not very valuable compared to your higher denominations of AUD. You might be required to bring a small bag to carry the local currency after exchange. Most countries still permit haggling, so show confidence and be patient.
Trust Your Instincts
Beware of the black market moneychangers who might be involved in a number of scams, including counterfeiting, theft and shorting your money. They probably won’t expect you to count out large amounts of bills. Also, some local banks are crooked; they might think that you will travel before you realize that they have not exchanged the correct amount of money.