Heading to a foreign destination and need to get the foreign currency conversion done! Whether you know it or not, the currency conversion amounts to a substantial cost in your overall trip, so it is advised to engage in a bit of research work as else you may end up paying hugely for this expense.
Below are given a few ways that will help you save on currency exchange:
1. Select the right currency:
Obviously, you need to buy the currency of the country you are travelling to, but for some of the countries you can also go in for more common currencies such as the US dollar or Euro and then at the destination country exchange them for local currency. It is because some of the currencies in India such as Turkish Lira are not readily available and the demand-supply mismatch increases their exchange rate.
Also, prior research done to get the best possible rate for currency exchange in destination country will also be beneficial for you as places of high footfall such as malls and airports charges exorbitantly for currency exchange.
2. Opt for exchange rate alerts for the currency you wish to exchange:
A number of online service providers have started with the facility wherein they update you with exchange rates as and when you set up exchange rate alerts with them. This way you can do away with the need to track the rates every now and then. And once you get a favourable rate, you can also ‘lock-in' that rate on an online basis for some time just by paying a nominal amount as deposit money which is refundable.
Also if you understand the dynamics of foreign currency exchange rates that keep changing every few seconds, you can make an attempt at wisely timing your currency exchange. For this, you can start tracking the exchange rates at least a fortnight before your departure date to understand the trend better.
3. Take note of hidden charges:
While going for foreign currency exchange, remember to always ask for the break up in respect of the charges that include the transaction fee as well as hidden charges if any from your bank or foreign exchange company before exchanging your currency.
4. Online forex marketplace could be the best choice to go for currency exchange:
Of late, the entry of online players in the field of foreign currency exchange has simplified the task for customers as they are able to get best of deals with minimal effort. Nonetheless, it has to be a trusted partner. Also, you need to know that if you go for currency exchange at banks or currency exchange store or money changers there is a huge price differential among them and hence you need to scout out the best offer for you as else you may be paying 5-10% higher than the usual interbank rate.
Airports and such other places that witness high footfalls should be avoided as they generally quote a price of up to 30% higher than the market rates. Banks and money changes also entertain reasonable negotiation, so put your best attempt at negotiating enough.