Everyone knows that foreign exchange attracts certain commissions. Sometimes you will lose a lot of money while indulging in foreign exchange when travelling abroad. Some of these may be in the form of commissions, credit card surcharges, ATM fees etc. paying these are inevitable and quite necessary in most of the cases. But there exists certain tips and tricks which can aid in reducing the costs involved in foreign exchange.
Exchange rate – One should always know about the exchange rates through forex trading forum in advance before indulging in foreign exchange .One should also understand that, the currency exchange rates listed online or in newspapers are always lower than the rate offered in banks or currency exchanges. This is because the exchange rates listed online do not include commissions.
Location – While exchanging currencies, one should avoid doing so in currency exchange booths located at airports or railway stations. Local banks are the best choice in most of the cases. There are several other private firms also which provide foreign exchange at attractive rates. One should choose the best after going through the multiple options.
Commission – It is best to avoid commission even though it is not literally possible. It is often considered good to pay commission if there is a better exchange rate. That is why it is better to perform a thorough calculation before indulging in foreign exchange. These days foreign exchange calculators are in built in most of the smart phones making it easier to perform calculations. One can also download some in built apps which are can aid in performing foreign exchange calculations.
Credit card use – Before going abroad, one should get in touch with the banks offering credit and debit cards and enquire them about the commission rates or credit card charges you have to pay while conducting transactions abroad. Usually it will comprise of credit card charges in addition to currency conversion charges. Some banks charge less for credit card transactions abroad. So if you want to buy a new credit or debit cards for a more favourable deal, you can do it before leaving the country.
US Dollars – Some countries also accept US dollars along with their local currency. The currencies in Bahamas, Barbados and other Caribbean countries are linked to the dollar. Also if you intend to travel to a country where there is a fixed currency exchange rate, It is better to pay in dollars rather than losing money over exchange rates. By keeping these tips in mind, one can enjoy their foreign trip to the fullest.