When you are traveling abroad, the crucial thing is about how to exchange foreign currency. To give you some insight, here are 3 tips on how to exchange foreign currency.
1. Never Exchange Currency at the Airport
The price is too high for that convenience. Airport currency kiosks, as well as those near common tourist areas, typically come with a greater margin of exchange and more fees. When you changed dollars to local currency when you arrived at your destination airport, then your remaining foreign currency was changed back into dollars before you flew home, you will end up losing money twice.
2. Compare Exchange Rates and Buy Currency Online before You Travel
There are 3 kinds of currency online platforms you can try. There are Coinmill.com, BestExchangeRates.com, and Travelex.
Coinmill.com offers a daily modified currency exchange rate conversion calculator. The currencies are represented from all over the world. This is a decent first stop to figure out how much your dollars without the profit margin and additional fees will be worth.
BestExchangeRates.com shows real exchange rates and allows you to compare daily bank rates with the rates provided by travel money and international transfer providers. Unfortunately there is only one travel money provider listed on their site at the moment.
Travelex is listed on BestExchangeRates.com and is widely considered to be the best in online sales. There are no additional costs, but if you have less than $1,000 in currency shipped you do have to pay for delivery. Pick-up store is free.
It also provides a “cash passport” that acts like a credit card in case of loss or theft and preserves your balance. A few extra fees do come with the cash passport; however, it may be cheaper than racking up foreign currency transaction fees on your standard credit card.
3. ATMs and Credit Cards Offer Convenience but Come with Extra Costs
Withdrawing foreign currency from an ATM could be a safer choice than exchanging money at a kiosk. But ask your home bank about their international transaction fee policies before you do so. Many people prefer using credit cards while traveling, in particular to avoid carrying large amounts of cash.
But each time you make a payment, your credit card will charge you a foreign transaction fee. Those charges will easily add up to a not insignificant percentage of your trip’s total cost. Check out our best foreign travel credit cards to make sure you get a good deal. Many of these cards come with other travel related perks, such as travel related insurance and discounts.
