6 Simple Steps to Understand Money Exchange

Are you planning for a trip? Do you anticipate having a good time while overseas? Have you exchanged your currency? No need to worry; here’s help.

Currency exchange is an easy process. However, it can be challenging when you don’t understand the basics.

Before you travel, it is important to plan to save yourself some money. This is because you have time to track the most competitive money exchange rate offers in the market. Favourable exchange rates enable you to work within your budget.

To exchange your currency, here are six steps to guide you:

1. Understand the Money Exchange Process

Understanding the currency exchange process is important, especially if you have never done it before. It helps to look for the most competitive institution offering the best currency exchange rate. To get the best deal on currency exchange, you need to understand some currencies have a higher value than others. After shopping around, settle for the most competitive currency exchange rate.

2. Exchange Some of Your Money before Departure

Exchanging some money in your country before you depart for the trip is highly advisable, especially when travelling to countries you are less familiar with. The ideal ratio to exchange your money should be 80:20, based on the famous Pareto principle. This means 20% of your money should be in cash and 80% in Forex card. Also, understand besides the two popular currencies, the euro and the USD, which are high-value currencies, there are other exotic currencies that trade for less.

3. Research the Currency Exchange Rate

Research the currency exchange rate available before exchanging your money. The exchange rate for large amounts of cash tends to fluctuate, but with careful timing, you can save a lot of money. Essentially, it is better to exchange most of your cash after arriving at your destination. However, if the exchange rate in your home country is better, exchange most of your money before you leave.

4. Exchange Currency at Your Bank

Banks attract low exchange rate fees compared to forex bureaus. It is therefore wise to exchange your currency there.  However, bear in mind that banks located in remote places outside major cities have limited cash at hand. To avoid disappointment when visiting such places, place your currency order a few days in advance.

5. Look for a Traveller-Friendly Account

Before you go for a trip, it is crucial to visit your bank and inquire about their ATM charges. Find out how much they charge to cash cheques overseas. If their fees are too high, look for a bank with favourable charges or no fees at all. Transfer your cash into the new account for use during your trip.

6. Purchase Cash Online

To avoid visiting the bank to exchange large amounts of money, consider buying cash online instead. There is stiff competition among companies online, which forces them to lower their exchange rates to attract clients. Moreover, online exchange rates are updated regularly. However, should you want to ship your money, buying cash online is an untenable option.

Knowledge of the money exchange process is essential. You can only get the best exchange if you know what other exchange rates exist in the market. Always research the best exchange rate before changing your money. It is always wise to exchange some of your cash before you travel overseas to avoid being stuck with unfavourable rates from unscrupulous vendors in a foreign country. If you plan to exchange large amounts of money, consider buying cash online to get a fair exchange rate. This way you can be sure of getting the best exchange rate in the market.