15th April 2013
A guide to money rates & travel currency
For those not used to money rates, travel currency purchases can seem confusing. We provide advice on getting the best value.
Buying on the high street?
Money rates change intra-day and the Forex currency market is one of the most exciting, dynamic and fast-moving in the world. For most people, however, trading in Forex is not of immediate concern. But getting the best US or Euro exchange rates is important when it comes to taking a holiday. So how do you find the best money rates on the high street?
Firstly, know that making the wrong choice will cost you. The currency market may work efficiently, but the money rates you see on a Forex tracking website will bear little relation to the price you are offered at the bank, travel agency or bureau de change. The important thing is to find the best deal over the counter, so that you maximise the amount of money available for your trip.
Don't defer exchanging your money until you arrive at the airport unless you are simply collecting the results of an earlier transaction, carried out competitively. If you exchange there and then, you will generally be charged significant fees and receive the poorest money rates, as you are a captive audience.
Look for rates at supermarket bureaus, large travel organisations and the Post Office and see which offers the best prices for the currency you want. There are occasionally sales and promotions and you can sign up to receive notifications about these.
If you are serious about travelling and you are organised ahead of time, you might also want to read up about the money markets and keep an eye on longer term trends, so that you can attempt to time your currency purchases.
Another way in which to improve your exchange rate would be to buy a regular amount of foreign currency in stages before your departure, rather than risking an exchange at the last minute, at the going rate. This approach will level out the impact of market fluctuations and give you an exchange rate at a long-term average. Just factor in the costs of any commissions and exchange fees.
Check out Online Brokers
The best money rates are generally found online. If you are organised, you can book your travel currency in advance and use a comparison website to track down the best deals. Choose a reputable company, however, as regulation and client fund protection varies in the foreign exchange market.
For further information, why not contact us today?
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