When planning a trip abroad, exchanging currency is an essential task that requires careful consideration. The process of exchanging currency can be complicated, and there are many factors to consider, such as exchange rates, fees, and availability of currency. Making a mistake when exchanging currency can cost you a lot of money and may even affect the overall success of your trip. It is good to be cautious while exchanging currency as it allows you to spend sensibly and stay within your budget.
Mistakes People Make When Exchanging Currencies
For first time travelers, dealing with currency can be a bit difficult thing as many don’t have enough knowledge of foreign exchange. Before embarking on a trip abroad it is important to be equipped with knowledge pertaining to foreign exchange. Many travelers unknowingly make mistakes while handling foreign exchange. Here are some common mistakes to avoid when exchanging currency for travel abroad.
Exchanging currency at the airport
One of the most common mistakes that travelers make is exchanging currency at the airport. While it may seem like a convenient option, it is usually expensive. Airport exchange rates are often unfavorable, and the fees charged can be exorbitant. Therefore, it is advisable to exchange currency before leaving for your trip. BookMyForex, the largest online marketplace for forex offers live, and unbeatable rates for those wishing to travel abroad. Our online booking system and doorstep delivery ensure that you get your money on the same day and have a hassle-free booking experience.
Exchanging currency at hotels
Exchanging currency at hotels is another mistake that travelers make. While it may seem convenient, even hotel exchange rates are often unfavorable and attract high fees. In addition, hotel exchange services may not be available 24/7, which can be inconvenient if you need cash at odd hours. Therefore, it is advisable to avoid exchanging currency at hotels and use reputable exchange providers only.
Exchanging currency in unfamiliar places
It can be tempting to exchange currency at the first provider you come across, but this can result in unfavorable rates and fees. When you are unsure of a place and have not checked out its credentials, you are likely to come into contact with dubious money changers and forex providers. Be wary, exercise caution and choose a reputable exchange provider that offers competitive rates and transparent fees. In addition, it is advisable to exchange currency in populated areas to avoid fraud and theft.
Not researching exchange rates
Travelers rarely spend enough time researching exchange rates. Exchange rates can vary significantly depending on the country you are visiting, the type of currency you are exchanging, and the exchange provider you choose. Before exchanging currency, it is essential to research the prevailing exchange rates and compare them among different providers to get the best deal. There are several websites and apps available that allow you to compare exchange rates among various money changers. At BookMyForex you get live forex exchange rates for various currencies that get updated every three seconds. We offer fair and extremely competitive rates which means that you get the best rates, vis-a-vis other forex providers.
Exchanging too much currency
Exchanging too much currency is a common mistake that travelers make. While it is essential to have some cash on hand for emergencies or small purchases, carrying too much cash can be risky. In addition, exchanging currency back to your local currency can result in significant losses due to unfavorable exchange rates and fees. Therefore, it is advisable to exchange only the amount you need and use other payment methods such as forex cards for larger purchases. A prepaid forex card allows you to load the currency of your choice. Not just this, but our forex card comes secured with a chip and pin that protects you from fraud and theft. On return from your trip, you can exchange what remains on the card back to your local currency.
Not considering exchange rate fluctuations
Have you ever stopped to consider that forex exchange rates can fluctuate a great deal? Exchange rates are volatile and can change significantly within a short period. Therefore, it is essential to consider exchange rate fluctuations when wanting foreign currency and choose a provider such as BookMyForex which lets you lock in your desired forex rates by paying a refundable deposit of 2%. It is also advisable to monitor exchange rates before and during your trip to take advantage of favorable rates.
Not carrying a mix of currencies
A common mistake that travelers make is not carrying a mix of currencies especially if they are traveling to multiple countries or regions. This can provide flexibility and convenience when making purchases or exchanging currency. In addition, having different currencies can also help you avoid the hassle and expense of exchanging currency multiple times. Therefore, it is advisable to carry the local currency of the countries you plan to visit and major currencies such as the US dollar or Euro.
Ignoring fees and charges
Ignoring fees and charges while exchanging foreign exchange can cause your budget to go haywire. This is a common mistake that travelers make when exchanging currency. Exchange providers charge various fees and commissions for their services, including transaction fees, service fees, and conversion fees. Therefore, it is essential to understand and read up on the fees and charges associated with currency exchange and choose a provider that offers transparent and competitive rates. Some exchange providers offer no or low service fees, but their exchange rates may not be competitive, so it’s important to consider both the fees and exchange rates.
Using credit cards for cash advances
If you decide to use a credit card, using a credit card for cash advances is a huge mistake travelers make while exchanging currency. Cash advances are expensive and attract high-interest rates and fees. In addition, using credit cards for cash advances can compromise your credit score and result in additional charges such as foreign transaction fees. Therefore, it is advisable to use credit cards only for purchases and not for cash advances.
Not Keeping money safe
To prevent pickpockets from taking your wallet or purse unnoticed, avoid storing your money in a convenient location. If you keep all your money in one place, you may not realize it’s missing until you need to make a payment at your destination. Therefore, it’s advisable to keep a watchful eye on your valuable belongings and distribute your funds among multiple adults in your group. This way, if one person falls victim to pickpocketing, you won’t lose all your money.
Not keeping receipts
Receipts serve as proof of transaction and can be used to dispute any errors or discrepancies that may arise. In addition, receipts can be used to track your expenses and monitor your budget. Therefore, it is advisable to keep all receipts when exchanging currency and store them in a safe place.
Conclusion/ Key Takeaway
In conclusion, exchanging currency is an essential task when traveling abroad, and it requires careful consideration. It is always beneficial to pick a forex and avoid these critical mistakes when exchanging currency which can cost you a lot of money and may even affect the overall success of your trip.