How can I save money in a currency exchange?
There are several things to consider when you travel on a holiday or for business. A travel budget is usually at the top of the list. Knowing how much a trip will cost before you leave is a major concern.
Most people who travel to another country or group of countries plan the trip in advance and that planning process includes the currency exchange market. Knowing how much your money is worth in another country is a critical ingredient in the budget and should be studied carefully.
The currency market is constantly changing, so research and advice are key elements, especially if you want to save money in the exchange process.
Waiting until you reach your destination to exchange money is not the best idea, especially in today’s volatile global market. A one time exchange when you arrive in your host country usually is more expensive than exchanging small amounts of money during the planning process.
When you average your exchanges while planning you know exactly what each exchange costs, so the budget is more realistic. Averaging prevents a major meltdown if the currency pair you’re working with has a major shift in value. The Dollar/Euro pair can move 1600 points over the course of a few days and that can costs you an extra $160 for every $1000 you exchange.
If that exchange is done at an airport it can be a budget breaker. In order to save money when exchanging currency get advice from a professional trader who knows the history and the current movement of your trading pair.
Where should I exchange money?
Most people use banks to exchange money; they assume they get the best rate and it’s convenient. Banks charge a fee for each exchange and they may not give you a real time rate.
Credit card companies exchange money using a rate that includes their profit and they add a surcharge to each travel purchase, so you don’t know how much each transaction costs until you get the statement.
Airport currency merchants may have hidden fees in their exchange rate and they may be closed when you need them, especially if you arrive at your destination early in the morning. The best way to exchange money is through a reliable currency trader that watches the market hourly.
They will help you average your exchanges and will give you additional help if you need it.
Other travel ideas
Some countries have limits on the amount of cash a visitor can carry. If you’re over limit and a customs search finds it, it can be confiscated, so it’s a good idea to know what that limit is and comply. Cash should be carried in a money belt or a hidden pocket that’s secure and out of sight.
Purses and wallets should only have a small amount of cash for minor purchases. Hotels and other security measures should be used when you arrive and common sense is the best security tool when you use it.
This article was designed by ForexTraders.com. Our experts research and analyze the currency market, so if you need more information about forex trading, currency exchange strategies or how interest rates and market volatility can affect your strategy, please visit our website.