September 24, 2018

Key Things to Consider before Transferring Money Overseas

At some point, you may need to transfer money overseas. This could be because you are buying goods and services, sending money to loved ones abroad, or even moving to a different country. Of course, you want to get the best currency exchange rate to get the most out of your Australian dollars. The good thing is, there are different means to do this.

Here are some key things to consider before transferring money overseas:

Know your options

Before finding the best currency exchange rates, know some of the platforms that will enable you to transfer and exchange money.

You can do this through a bank. The money will be debited from your account and moved to the specified account overseas. This is a convenient way to transfer money, especially if you don’t have time to compare rates.

Another option is through an international money exchange agency. If you regularly transfer money overseas, this is a great option as it is usually the cheapest one, plus they offer exchange rates with low conversion fees. PayPal is also a safe and reliable option, though it can be expensive if you need to transfer a large amount of money.

Check the rates

Get the best currency exchange rate as this will dictate how much foreign currency you can get from your Australian dollars. Since banks, agencies, and other avenues come with different rates, make sure to compare and look at the most attractive rates. Even a few cents can make a significant difference to the amount that will be transferred. Keep in mind that just because a money changer offers the best currency exchange rate for one currency doesn’t automatically mean that they offer the best rate for other currencies.

Consider the fees involved

Converting AUD into a foreign currency comes with a fee, and banks and agencies differ in how they determine the charges. Some may have fixed fees, while others determine the fee to be paid depending on the amount of money to be exchanged.

Know the speed of the money transfer

Usually, transferring money overseas takes one to five days. If you need to complete the transaction sooner, ask the bank or agency if they can make the processing time faster than usual. Just be aware that it may come with an additional charge.

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

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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.

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.

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How to Buy Foreign Currency

There may be instances when you need to buy foreign currency.  It can be because you’re going on a holiday or a business trip overseas. Whatever the reason is, it’s important to always get the best currency exchange rates to get the most out of your Australian dollars.

But how does buying foreign currency work? You can do this through a local bank. However, this may not be the best way to exchange currency since the rates are not that competitive. There are also specialist currency exchange providers where you can physically buy cash just like making any other purchase. Just take note that these providers don’t usually have a limitless supply of currency.

So if you need to buy a large amount of a certain currency, make sure to inform the provider days in advance so they’ll be able to prepare enough currency for you. This holds especially true for currencies that are less commonly purchased.

Another way to buy currency is through online. If there’s no physical store of a specialist currency exchange provider near your area, you may want to purchase cash online and it will be delivered to your place of residence. You can get better exchange rates this way.

Bear in mind, however, that buying foreign currency online comes with a delivery or courier fee. There may also be an option to buy currency online and just pick up the cash in a physical store or at an airport.

Here are other things that you need to consider when buying foreign currency:

Do your research

Get the best currency exchange rates by shopping around and comparing the offerings of several providers.

It’s not just about the rate

While it’s great to get competitive rates, it is equally important to look at the total cost. Think about other expenses such as commission, credit card charges as well as delivery fees. These can all add up and you may end up paying more than you should.

Plan. Plan. Plan.

If you want the best currency exchange rates, don’t buy cash at the last minute. Do your research in advance so you can assess all your options. With enough time to check the rates of different providers, you’ll be able to make a well-informed decision and get more out of your money.

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

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The Risks of Forex Trading

Many are fascinated with foreign exchange trading, or simply Forex trading. The foreign exchange market facilities the buying and selling of currencies all over the world. The ultimate goal of Forex trading is to yield a profit by buying low and selling high, but there’s also the risks of Forex Trading or the possibility of losing money, when your trades don’t go the way you want them to.

Of course, doing research can help determine the best Forex trading strategy. There are so many resources available on the Internet nowadays that you can look into so you can have a better understanding of the process.

Since losing money is a possibility, it is important to learn how to minimise the chances of losing money in the market. Take note that even the most experienced Forex traders encounter losses.

In this article, let’s take a look at several risks associated with Forex trading:

  • Forex traders gain profits in markets from fluctuations in foreign exchange rates.  These changes are a result of many circumstances including the state of the economy and political events. This is called volatility. If there are opportunities for earning money, volatility also comes with the risks of losing money.
  • Foreign Exchange Markets operate 24 hours a day and 6 days a week (due to time zones). This means that you should be ready to devote a lot of time to tracking your investment.
  • Forex trading is a high risk investment, as many factors can affect exchange rates. In other words, this is not for everyone. It entails careful planning and research. If you want to try it, make sure to assess your objectives, financial capacity, as well as your level of experience.
  • Most Foreign Exchange products are highly leveraged, so even small movements in the market can have a huge impact on your investment.
  • The potential to generate income from Forex trading is high, and there are successful traders who have gained huge profit from Forex Trading. However, people still tend to forget that there are risks of Forex trading too. Forex trading is not only about techniques and strategies but also the psychological capacity to know your limits.

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

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Key Factors that Affect Foreign Exchange Rates

When traveling overseas, we are always on the lookout for areas or establishments where we can get the best currency exchange rates. In general, there really is no best way to exchange money. It’s just a matter of finding a reputable establishment that offers competitive rates. Also, there are several key factors that affect foreign exchange rates.

Exchange rates play a significant role not only for travelers but also on businesses. To get the best foreign exchange rates, we need to know the main factors that affect them. For companies, understanding these factors can help them mitigate potential risks that can have an impact to their operations. In this article, let’s take a look at some of these key factors:

Inflation

In general, the lower the inflation rates are in a country, the higher the value of its currency.

Interest rates

These affect foreign exchange rates in the sense that if a country has higher interest rates, it can mean that investors get better returns. This leads to higher-value currency of a country.

Unemployment rates

Even the number of people who have no jobs affects foreign exchange rates. How? If a country has a high unemployment rate, the Central Bank may reduce the interest rates so as not to be an extra burden to an economy that is already facing financial issues.

Stability and economic growth

Investors also look at the level of political stability and economic growth (or lack thereof) of a country. If it posts strong and stable economic growth, currency valuations tend to be stronger.

Account deficit

This means that a country has higher spending (through imports) than earnings (through exports). If this is the case, it needs to get a loan from other countries to pay off the deficit. When that happens, the currency valuations become weak.

Terms of trade

This refers to the price difference of exports and imports. If a country’s exports get a higher price than the price it pays for imports, it is a positive terms of trade, which leads to stronger currency valuations.

Public debt

The level of public debt affects foreign exchange rates in the sense that if a country has large budget deficits and borrows money to pay these off, inflation will tend to rise, which leads to weaker currency valuations.

Do you know other factors that affect foreign exchange rates of a country? Share your ideas in the comments section.

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What You Need to Know about Foreign Exchange

More and more Australians are travelling overseas, thanks to the strong Australian dollar and airfares that have become more affordable. One main consideration when traveling to a different country is how to get the best currency exchange rates. By knowing how far your dollars will get you, you’ll be able to create your travel budget and set expectations when it comes to accommodations, food, transport, shopping, and other expenses while abroad.

Here are some of the things that you need to know about foreign exchange and the best way to exchange money: 

  • Foreign exchange is traded 24/7, around the world. This means that foreign exchange rates can change every minute. These changes may not look much, but it is important to look into it on a regular basis.
  • In most cases, international currencies “float”. This means that their relative value is set by traders who are buying and selling various currencies around the world.
  • One way to get the best currency exchange rates is to check the fees and commissions. Compare the offerings of several providers and choose the one with the lowest possible fee.

What are the best ways to exchange money when traveling overseas? 

  • Buy online. The digital age has enabled foreign exchange to be done online. Aside from convenience, buying currency online usually offers better rates. Just buy in advance as it may take several days before you can get the money from the pick-up location.
  • Go to a specialist money exchanger. If you need larger amounts of certain currencies such as US dollars, heading to a specialist money exchanger in the city can be the cheapest way to buy currency. You can get the best currency exchange rates by shopping around to look for competitive rates.
  • Exchange money through your bank. Some people think that it’s expensive to buy currency in an Australian bank. The truth is, it depends on the currency that you need. For instance, many Australian banks don’t offer competitive rates when it comes to US dollars and Euros. However, you may get the best currency exchange rates when you buy currencies such as South African Rand or Chinese Yuan.
  • Buy currency on your destination. Many countries offer competitive foreign exchange rates and in some cases, buying currency overseas can be a better option compared to doing it before you leave Australia.

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

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What is Forex trading?

Forex trading – we usually see it on newspapers, TV and online.  At first glance, it’s a series of numbers and charts, as well as names of different countries and their currencies. But what is it exactly? It is the process of buying and selling foreign currencies with the aim of generating profit. It involves speculating the value of one currency compared to another to get the best currency exchange rates.

The foreign exchange market is one of the world’s biggest and fastest-paced markets. Simply put, you may have tried it when you went to another country and exchanged your money. Before that, you most likely looked for the best currency exchange rates to get the most out of your money.

Forex trading is a great opportunity for investors. It is also ideal for those who are looking for another source of income. However, bear in mind that forex trading comes with its own share of risks, so it is important to spend a lot of time in understanding how it works.

Risks in Forex Trading

  • Currency rates are volatile, which means that they go up and down a lot within short periods of time.  This may lead to loss of money on your part.
  • You need to spend a considerable amount of time to track your investment.
  • Politics, economic situation, and confidence in the market are some of the factors that affect currency exchange, which is why markets are very hard to predict.

Things to Consider in Forex Trading

Forex trading offers several benefits, but it can also be a risky endeavour. Minimise the risks by keeping these guidelines in mind:

  • Do your research. Gain knowledge on terms such as foreign exchange, leverage as well as volatility of currencies. Understand how it works and the online platforms that are used for trading. Make sure that you can commit enough time to keep track of your trades.
  • Make sure to read the product disclosure statement carefully before investing. Ask a qualified individual such as your financial adviser about things that you’re not sure of, especially the risks involved.
  • Ensure that the Forex provider that you want to deal with has an Australian Financial Services Licence. You can ask the ASIC Connect’s Professional Registers about it.
  • The reality is, you can lose your investment, so be prepared in case this happens.

Got other tips on Forex trading and the best currency exchange rates? Share your ideas in the comments section.

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Simple Tips for Exchanging Your Money Abroad

If you’re a frequent traveler overseas, you already know by now the importance of finding the best currency exchange rates to get the most out of your Australian dollars. Spending money abroad can be done through a wide range of options. Aside from cash, you can use credit cards, debit cards, traveler’s cheques, and prepaid travel cards. Sad to say, there are some people who do not consider looking for the best foreign exchange rates before and during the trip, making them waste money on unnecessary charges. Here are some simple tips for exchanging your money abroad:

Cash will always be an option

No matter where you go, there will be some establishments that do not accept cards, so it is still best to bring some cash when traveling abroad. Prepare enough cash for expenses for the next two or three days.

Exchange money at the airport

This is another option but bear in mind that it comes with fees and exchange rate profit margins. You can reach out to some airport providers before the trip so they can give you better foreign exchange rates.

Use traveler’s cheques

While most people prefer to use credit and debit cards, there are still some who bring traveler’s cheques with them. It’s a great backup option since if you lose them, the provider will give you a replacement. Just make sure to keep a record of the serial numbers so you will be protected in case of loss or theft. There are also foreign exchange providers that will refund unused cheques without any extra fees.

Exchange money at the bank

In general, banks offer competitive foreign exchange rates and fees, but you can save some cash if you look around first so you can have an idea of how much the current rates are. It is also wise to place your currency order several days before your trip, or even more than a week for exotic currencies since the banks may not have these on hand.

These are some of the simple tips for exchanging money overseas. Knowing the best way to exchange money will definitely help you save money. It pays to include foreign exchange-related matters when planning your trip to avoid any surprises such as high fees and other charges. It is also advisable to bring more than one money option to avoid any inconvenience abroad.

Got other tips on the best way to exchange currency? Share your ideas in the comments section.

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7 Currency Tips for Travelling Overseas

Travelling overseas is a great way to bond and make new memories with family and friends. There are several things to take into account for an overseas trip, from accommodation and flight details to tours and car rental. Another key aspect to consider is currency exchange. Bear in mind that there are fees involved in exchanging currency, and there are many travel options to choose from.

Here are seven currency tips to keep in mind when travelling overseas:

  1. Check the best way to exchange currency in your destination. Part of your trip planning should be knowing how to exchange currency when you get there. It’s always better to be prepared to avoid paying unnecessary fees and inconvenience.
  2. Don’t wait until you’re at the airport to exchange currency.  In general, fees and profit margins are way higher in airports. Whether you’re going to use cash or credit card, you will still pay much more in charges and margins.
  3. Banks usually offer competitive rates but make sure to look at several banks and choose the one that gives the best foreign exchange rates and fees. In general, you will pay about 2.5% higher than the market exchange rates of that particular day. If you’re a regular customer then you may get lower fees.
  4. Consider using a prepaid travel money card. You can convert your Australian dollars into your chosen currency without paying currency conversion fees, unlike when you use your Australian card overseas.
  5. Always bring cash. Don’t rely solely on your debit and credit cards when travelling overseas. There may be transactions that don’t accept cards, so cash can be your best bet.
  6. If you need to use your credit card, bear in mind that transactions come with fees such as cash advance fee for withdrawals and currency conversion fees, not to mention the interest rate.
  7. Place your currency order several days before your overseas trip. Some banks or providers may not have the currency that you need, especially the not so common ones. There can be changes in currency exchange rates by the time you place your order up to the time when you receive your cash.

Avoid the inconvenience and hefty charges when exchanging currency for your overseas trip. Keep these tips in mind to save some cash and get the most out of your pocket money.

Got other tips on how to get the best currency exchange rates when travelling overseas? Share your ideas in the comments section.

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Top 6 Exchange Rate Travel Destinations for Australians

Finding the best currency exchange rates is one of the main considerations when going on a holiday overseas. Of course, you want to get the most out of your hard-earned money, that’s why it is important to look for a travel destination that meets your needs without breaking the bank. In this list, we’ve rounded up six holiday locations that offer the best foreign exchange rates for Australians:

1. South Africa

Australian dollar is strong in South Africa. Just avoid currency exchange outlets in airports. These come with higher fees and commissions and therefore not the best way to exchange money. A trip to South Africa can include a safari in Kruger National Park. You can also go bungee jumping, sky diving, hiking, as well as swimming with sharks if you’re feeling adventurous.

2. Brazil

Australian dollar has been posting a steady increase against Brazilian real, making Brazil a great travel destination that offers the best currency exchange rates. To save money, turn off your mobile global roaming and buy a local SIM card. Consider taking a trip to Copacabana beach and other beautiful beaches of Brazil.

3. Canada

There’s no significant change in exchange rates against Canadian dollar, so this country is still a great travel destination for Australians. Save even more money by paying the essentials before you arrive in Canada to avoid any foreign exchange fees. There are a lot to see and do in Canada. Visit Alberta for the prairie lands. There’s also British Columbia in the western part and Quebec in the east.

4. Argentina

Since mid-2013, the Australian dollar has been strong against the Argentine Peso, so you may want to consider Argentina as your next travel destination. Should you want to rent a car, make sure to return it in the same country. You will pay a lot of dollars if you cross borders.

5. New Zealand

The Australian dollar has been steady in New Zealand, that’s why it’s a favorite destination. In fact, Australians account for the largest inbound tourism market in New Zealand. It is also more accessible now with additional flights from a few budget airlines.

6. Indonesia

The last few years had seen a dip in Indonesian Rupiah against Australian dollar, so Australians can get the most out of their money when they go on a beach holiday in Indonesia. You can also go shopping in Jakarta or Surabaya. One money-saving tip is to plan early to get bargain flights and accommodation.

Got other ideas on travel destinations that offer the best currency exchange rates for Australians? Share your insights in the comments section.

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