Travelling is part of what makes life interesting, as you get to create loads of memory to share with family and friends. Yes, travelling is bliss if you can afford it.
There are loads of responsibilities that come with travelling abroad, from planning your itinerary, reserving hotels, booking your ticket in advance and exchanging your foreign money to the local currency of your destination.
Last minute rushes to the currency exchange bureaus located just anywhere, will be convenient but very expensive. The most convenient options when it comes to currency exchange are never favorable in terms of rates and fees.
For this reason, you should always do your research on changing money, while still at home. You might even find it cheaper to make your exchange at home rather than abroad.
Therefore, make an effort to know some of the best locations and methods of exchanging currency. For instance, if you are a Canadian or plan to travel to Canada, by knowing the currency exchange locations Ottawa or any other Canadian city. You can be on your way to buying Forex at the best rates while travelling.
As for now, here are some great tips for buying Forex while travelling to any country.
1. Know the currency exchange rate
The currency exchange rate is the rate you pay for foreign currency. So before leaving for your overseas journey, know the exchange rates, in a bid to know how much holiday money you will get for your home currency. You can do most of your research online for a better chance of knowing when the rates are favorable.
2. Know how to differentiate the buy and sell rate
Knowing more about how currency exchange works can give you an upper hand when it comes to making an exchange. Yes, numbers can be confusing but when you know how to read them then nothing can stop you.
You will notice two rates when buying Forex, the buy and sell rate. The buy rate is what the bank is offering for your currency while the sell rate is what you are paying for the foreign currency. The difference between the two rates is their profit, got it.
3. Buy Forex at the right channel
There are loads of places that you can buy currency while travelling from airport booths, to travel agencies, banks and even at the unauthorized moneylenders. However, it is always advisable to deal with authorized agents who can give your receipt for your currency exchange. Do not fall into the temptation of the discounted lending fees often given by unauthorized moneylenders.
As for airports, they are often expensive when it comes to exchanging currency, so opt for them only for emergency.
Otherwise, do your research before you leave the country to know the best options out there and where they are located.
4. Buy Forex using credit and debit cards
Even though credit and debit cards work globally, there is always a certain fee levied on it by your bank every time you use it. So to avoid these fees, apply for a no transaction card or a borderless prepaid card that you can load with up to eight different currencies.
You can also save on withdrawal fees if your home bank has partner banks all over the world or if it belongs to the Global ATM Alliance.
Anyhow, do your research as using debit and credit cards while travelling can prove viable and cheap when compared to making an exchange at foreign currency bureaus.
5. Buy Forex in advance
Forex exchange rates often change daily, so keep track of it using apps and other currency rate monitoring tools, to know the best times to make an exchange while still at home. This is because the rates at home may be better than the ones abroad.
Nevertheless, avoid last minute transactions as they can give you higher rates, costing you a lot in the end.
Being ready for your trip is not limited to just booking flights and hotel rooms and knowing where to go. You have to know how you are going to get the local cash before you leave.
Otherwise, running to the most convenient option available, when you need to buy Forex is not viable and will probably cost you more, than if you had planned for a better place, time and method to make the exchange.