If you have made international payments, sent money to your family overseas, or traveled abroad, you know how hectic it can to exchange currency. Looking for banks or online exchange brokers of an unknown city can be costly and time-consuming. Moreover, if you are not careful, foreign exchange costs can add up easily. The following are tips to help you save money on currency exchange.
You need to find out the current market exchange rates. Nowadays, there are online calculators that convert CAD to USD and vice versa. You can only be sure that you have found the right deal when you know the current exchange rates. After finding the right deal, you need to exchange the funds.
Determine Foreign Exchange Costs
Remember that some foreign exchange costs may be hidden and others transparent. Therefore, it is vital to understand what you pay for. Like any given company, foreign exchange providers ought to make a reasonable profit to stay afloat. These are some of the ways providers generate revenue:
- Charge commission, handling fee, flat fee, or minimum charge
- Include a spread in the exchange rates by buying and selling currencies at a margin
- Charge transfer fees
Consolidate Your Transactions
The fact that currency exchange transactions have associated fees, making fewer transactions may result in lower costs. No matter the type of transaction, you can save money by consolidating money transfers into large transactions. Moreover, some foreign exchange providers can offer better rates or even waive commission fees when you exchange a given amount of money.
Beware of Counterfeits
The truth is that each country has a fair share of the counterfeit currency. Well, some have more than others. If you want to avoid the fake currency, you should get familiarized with the feel and look of the currency. Therefore, you should note the watermarks and various security features. That can make the process of spotting fake money a lot easier. Ensure you use your trusted foreign exchange providers.
If you are planning to move abroad, plan to stay overseas, or studying internationally for an extended period, you should consider sending your money abroad or banking overseas. The good thing about opening a local bank account is that it can help minimize the fees and ensure your money is more secure. Moreover, it makes consolidating the currency transactions a lot easier and can help mitigate the various risks associated with currency fluctuations.