The GypsyNesters

Although most of us would like to travel often, the truth is that not many of us can plan multiple trips in a year. This means that it’s even more vital to get the best price possible while exchanging your hard-earned cash for foreign currency. The best way to know the current market rates and the fees that you’re expected to pay for exchanging currency abroad is by visiting a currency exchange compare site like MoneyTransfer.org.uk.

We’ve also outlined a few simple tips that can help you in exchanging your currency while you’re travelling.

#1: ATMs are still the best choice and we’re not kidding, here’s why:

Although some banks charge high fees to withdraw money internationally, ATMs still remain the cheapest option for converting your currency abroad. In addition to high fees, you also need to be aware of the foreign transaction fees per withdrawals, plus a premium if you’re withdrawing from a non-partner ATM or a different bank ATM.

That being said, many banks offer credit cards or forex cards that can be used internationally with minimum currency exchange fees. These cards have been created for people who travel abroad often and need an economical way of converting their local money into foreign currency. You’ll need to ask around and find out which banks have good offers. But always remember to read the fine print so that there are no surprises.

#2: Stay away from ‘No-Fee’ Bureau De Changes

If you see a sign that says “no-fee” currency exchange, the first thing that you need to do is check the rates that they are offering. More often than not, they will be much higher than the ones available at the banks as well. It’s always a good idea to check what the current exchange rates are so that you know how much higher these currency exchanges are charging.

Online compare sites like exchangecurrency.com can give you an idea of the current rates that change on a daily basis. Usually, you’re expected to pay anything between 4% and 9% of the total amount that you plan to exchange in to a foreign currency.

While converting the foreign currency back in to your local currency, you’ll need to pay exchange fees again. So, keep that in mind while exchanging foreign currency. We’d recommend you exchange an amount that’s needed on a daily basis only.

#3: Before travelling ask your bank to increase your withdrawal limit

You never know when you may need a considerable amount of money while travelling. So, it’s always good to let your bank know that you’ll be out of the country. That way if you withdraw more than normal, they will not block your account due to suspicious activity. You can call your bank and also ask them to raise your withdrawal limit for the period you’ll be travelling. Many banks will increase your withdrawal limit temporarily. This way you can safely withdraw as and when needed.

#4: Avoid cash advance on your credit card as much as possible except in a worst-case scenario

Taking cash advances in a foreign currency is a strict no-no. As mentioned above, you’ll be charged a certain fee when you withdraw from the ATM. But the additional charges don’t stop here. You’ll also be charged a percentage over and above your withdrawal as a foreign-transaction charge. Moreover, you’ll start paying a very high rate of interest the moment you get the cash. Sometimes the rate of interest can be up to double the regular interest amount that you’d be charged on your credit card.

Overall, a cash advance on your credit card internationally is a pretty bad deal. Try and avoid it as much as you can, unless absolutely necessary.

#5: Use credit cards for large amount purchases

When you buy something abroad and pay through your credit card, you can be charged a foreign-transaction fee of anything between 1% and 3%. However, this is still probably the safest as well as the cheapest way to buy something that costs a lot.

More often than not, you’ll always be ahead on the conversion since credit cards are known to add their fees over the Interbank rate. So, you’ll end up getting a great exchange rate even though you’ll be paying additional fees.

Certain banks don’t charge anything extra in spite of international purchases except the 1% that MasterCard and Visa charge. On the other hand, there are other banks that can really make you pay through your nose. So, always check the fine print before using your credit card abroad.

#6: You should never opt for Dynamic Currency Conversion

Commonly known as DCC, dynamic currency conversion gives you the option to charge you in your home currency. But never use this option! Always ensure that you’re charged in the local currency. DCC not only gives you a lousy exchange rate, but it also includes hidden fees. Moreover, your bank will charge you its fees for a foreign-transaction abroad anyway. So, in effect, you’ll end up paying much more than you actually bargained for.

#7: Don’t buy anything using your debit cards abroad

While using your debit card to withdraw is perfectly fine, using it to make purchases should be avoided. Here’s the thing, if you’re charged a wrong amount by mistake, there’s no doubt that your account will be debited immediately. But getting that wrongly debited money back into your account could take days. It’s always better to avoid this situation rather than not have money to spend when you’re travelling.

You need to know that whether you carry cash or traveller’s cheques, use your debit or credit card abroad, you’ll need to pay the currency exchange fees either in your home country or abroad. So, the best way to lower your currency exchange fees is by visiting sites that let you compare different rates. This will help you get the best deal available at the time.

We are happy to feature this sponsored post to offer information about currency exchange to our readers.

Leaving your entire life behind and emigrating to a new country for a better life can be intimidating as is. Whether you’re moving for work or retirement, you honestly don’t want to add the burden of how to exchange foreign currency and access your money in a foreign land.

In fact, that should be the last thing on your mind since anyway you’ll have to deal with other more important decisions. This is when having a concrete plan in place will help when you want to move your financial assets to your new home.

You don’t have to spend a considerable amount of money in currency exchange fees just to transfer it to your new home. There are a number of currency exchange sites like moneytransfer.org.uk that let you compare the different transfer fees and then decide which best suits you.

Transferring Money When Emigrating

There are many ways in which you can transfer funds overseas or access your money abroad. However, there are certain options that can seem quite lucrative at the time, but will end up being much more expensive in the long run.

For instance, if you’re considering withdrawing your cash from foreign ATMs, then it’s not a very cost effective plan, especially in the long run. Using your bank can cost you hundreds in currency exchange fees.

If you want to maximise both your small as well as big foreign currency exchanges, you should consider approaching a currency broker. And not just any one, only the ones that are credible and can be trusted with your hard-earned money!

You should know that these brokers are experts in their field. Contrary to popular belief, they don’t complicate things further. In fact, they simplify it as much as possible and help you save a significant amount of money.

How to Identify Reputed Currency Exchange Brokers?

The first thing that you should look out for is how easy and straightforward it is to sign up with them. A reputable broker will not charge you anything for signing up. If you’re asked to pay a sign-up fee, then you should stay away from them.

The second thing that most good brokers offer you is free consultation with no obligation. They should help you understand the process and figure out the most cost effective solution for you to transfer your funds abroad, even if you don’t guarantee that you’ll use their services.

For instance, if you’re emigrating to Australia and need the money for accommodation and day-to-day expenses, a good foreign currency broker should be able to transfer your money at a competitive rate. In fact, their rates should be lesser than that of a bank’s currency exchange fees that can go up to 3%.

Additionally, the brokers also end up offering specialist services that can prove to be very beneficial. An example of this service is something that lets you transfer a big amount at a favorable exchange rate.

Essentially, what the brokers are able to do is let you ‘fix’ a good rate as much as two years in advance of transferring the funds. Then all you need to do is wait until the exchange rate that you were interested in moves in your favour. At this point, you can ask your broker to fix it for you. Once the broker fixes the exchange rate, you can then transfer your money abroad without worrying about any negative shifts in the forex market. You’ll not end up losing due to that!

Since you’ll be emigrating, this form of ‘fixing’ the rate will be very useful. This way, you’ll know the exact amount that you’ll get for your currency exchange. It will also help you budget and plan your move accordingly.

Setting Up Regular Overseas Payments Account

Foreign currency brokers also enable you to set up something called as a Regular Overseas Payments account. This account is very useful if you’re moving abroad, but need to transfer funds from there on a regular basis. Maybe you need to manage your mortgage payments, move pension payments or pay international school fees, for instance.

This specialist service lets you transfer money on a quarterly or monthly basis. Of course, exchange rates will apply, but with this service you can get a competitive rate, without the additional cost of commission or transfer fees.

For transferring funds abroad, banks usually levy charges ranging from £10-£40 per transaction. Hence, with a Regular Overseas Payments account in place, you can potentially save hundreds over the course of a year in transfer fees alone.

Shopping Around for the Best Foreign Currency Exchange Rates

Comparing the various currency brokers and their reviews will help you get to know them better. This will also help you get the best exchange rate possible. Plus you can learn about the various services that they are known for and choose a broker accordingly.

Some are able to offer a same-day global transfer service, while some can customise a solution and plan that best suits your situation. Some forex brokers let you request a quote from them, while some provide a dedicated point of contact.

So, based on what you’re comfortable with, you pick a forex broker accordingly while emigrating.

Are there any other options?

Yes, there are. You can get in touch with your bank and find out what they have to offer. But more often than not their exchange rates as well as the fees will be comparatively higher than a foreign currency broker can offer. This is why many people pick a broker over their own banks.

No matter what you decide and where you emigrate to, you need to take the time to look around, compare the various options and then decide the best method to move your money abroad. After all, emigrating costs a lot and if you can save money while transferring your funds through a cost-effective plan, then why not?

We are happy to feature this sponsored post to offer information about currency exchange and transfers to our readers.