Here are some of the best ways to buy money for travel.
Gaining a better understanding of the foreign currency exchange concept is vital since it will help you get the most out of your funds when traveling abroad or in a foreign country. The main objective of currency exchange is to obtain the best exchange rates with low fees. There are numerous options for making purchases and exchanging money in different countries; however, this may include restrictions or hefty fees. Knowing some of the available options for exchanging foreign currency will ultimately help you get the best exchange rate possible. We will discuss some of the best options you can use to exchange currency and get the biggest bang for your buck.
How does foreign currency exchange work?
Currency exchange is a licensed business operation that allows customers or travelers to exchange one currency for another. Currency exchange of physical money, including paper bills or coins, is commonly done over the counter in a physical location, such as at a bank, resort, hotel, or airport. Currency exchange businesses, both online and physical, provide you with an opportunity to exchange one country’s currency for another by carrying out a buy and sell transaction. For instance, if you have Australian dollars and want to exchange them for Canadian dollars, you would bring your Australian dollars to the currency exchange store and purchase the Canadian dollars with them.
How to get the biggest bang for your buck
- Get your foreign currency from a credit union or local bank
- One of the best options to exchange currency when traveling in a different country is to transact or get cash from your local financial institution or bank. Credit unions or banks provide some of the best exchange rates. Some banks will also give you an option to either collect your cash in a local branch or have it sent to your home address. This strategy will work best before leaving your country to your next travel destination. It’s also an incredible option and advantage if the bank has in-network ATMs in the country you are about to visit.
- Use a travel-friendly credit or debit card
- Most travel-focused debit or credit cards offer rewards for travel expenses like hotel reservations or airline tickets. Travel debit cards allow you to access your savings directly, make purchases and perform everyday money transactions. Additionally, travel credit cards allow you to access credit which is often greater than your savings. This allows you to cater for the various travel expenses including accommodation, restaurant and car hire costs. The travel-friendly cards charge minimum or no foreign transaction fees, making it more convenient to perform transactions abroad.
- Purchase foreign currency online
- An online money transfer company will make it more convenient to purchase foreign currency online and ensure that the exchange rates are much better than in-store providers. You can compare and research various currency exchange rates provided by different online service providers using applications or sites like Best exchange rate, XE, Wise (formerly TransferWise) or the Currency App. It’s easier to buy currency online since there are plenty of pick-up locations, and you can also get your cash dispatched to your home or office.
If you want to exchange funds try out our Foreign Exchange Currency Calculator or our Currency Exchange Comparison tool below.