September 18, 2018

How to Get the Best Exchange Rate

Foreign exchange rates go up and down constantly. There is no easy way to tell the best time to buy your travel money but there are ways that can help you get better rates.

Look at the total cost, not just the rate

These include commission, credit card fees, and delivery charges.

There is no single best currency exchange rate. Aside from the exchange rate, there are some factors to consider when conducting international money transfers.  These include transfer fees, payment method, speed of delivery, and customer service.

Economic factors also affect exchange rates. The economy may be conducive to exchange rates today, but tomorrow is a different story. So, before you decide which is the best way to exchange money, here are some tips that you might need to consider.

Do your homework

Before leaving Australia, start monitoring the exchange rates for the country you are travelling to.  There are exchange rate charts that can give you real-time currency conversions. Currency converters are also handy if you want to check how much you’ll get for a specific amount.

Compare exchange rates

This is the best thing that you can do to negotiate a better currency exchange rate. Knowing the exchange rates of each bank and currency exchange companies in your area puts you in the best position to negotiate a better exchange rate.

Pay attention

Look at the total cost, not just the rate. Always check the total price, not just the exchange rate because there are other costs that you pay for. These include commission, credit card fees, and delivery charges.

Buy currency online

This method is becoming more and more popular because online exchange rates are often better. And, there are thousands of pick-up locations that make it easier to buy. Keep in mind, however, that buying online with your credit card can incur fees and other charges.

Use credit and ATM cards

Most of the time, you can get the best exchange rate when buying foreign currency with your ATM card or credit card. However, some credit card companies add fees for every transaction in foreign currencies.  Use your ATM card for day-to-day cash needs but keep in mind that your bank may charge you additional fees for every transaction. That’s why it is a good idea to withdraw as much money as you can instead of making multiple withdrawals.

Do you have other tips on how to get the best currency exchange rates? Share your ideas in the comments section.

About the author  ⁄ Marxa Dillan

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