Are you tired of paying tons of money on fees when you exchange currencies? Here are some excellent ways you can minimize fees when making currency exchanges.
Exchange Currency at the Destination Country
If you want to exchange currencies because you are traveling abroad, most people prefer to exchange their currency before they arrive at the destination country. It is usually a smart way to avoid looking for a currency exchanger in a foreign country.
However, it could also be more expensive. For instance, some more exotic currencies like the Turkish Lira or Vietnamese Dong are harder to find in your local currency exchangers. Since not many people ask for their currency to get changed into these exotic ones, the fees for these may be way higher.
You may save a lot more money by exchanging your cash once you arrive at your destination country. However, you need to be prepared. You can use the internet to look for currency exchangers near the airport so you can quickly exchange your cash once you get off the plane.
Do Not Use Airport Currency Exchangers
As stated earlier, we suggested that you should choose a currency exchanger at your destination country. However, you should not be tempted to use the destination country’s airport exchanger to exchange your currencies.
Airport exchanges are way more expensive than going to a local exchanger or bank. The exchange rate can be 7-15% more expensive than bank rates, and you may get smacked with a service charge on top of it. Therefore, make sure you know exactly where the nearest exchanger is outside of the airport to stay away from those extra fees.
Timing Is Key
The rates for foreign exchange can change drastically. They can fluctuate in as quickly as a few seconds. Therefore, you need to keep an eye out for them to know when the best time to exchange currencies is.
Of course, you cannot look at the rates 24/7. What you can do is watch the rates 2-3 weeks before you need to exchange the currencies. You should notice a slight pattern in what days are the best. From there, you can choose when the best time to exchange your currencies are.
You can also get exchange rate alerts for the currencies that you want to exchange. Some online marketplaces offer services where you can receive alerts through emails or texts. That way, you do not have to worry about constantly checking the exchange rates.
Watch Out for Hidden Fees
Before you exchange any currency, try to compare hidden transaction charges of exchange companies and banks. Just because the exchange rate for your bank is good that day, that does not mean you will get the most out of your money. Some banks have large hidden transaction fees that you will only see right before or after you make the exchange.
The rates to exchange currency can be massive. Luckily, you can follow any of the tips above to avoid dealing with large fees when you make currency exchanges.