Foreign Currency – Online Exchanges Offer Best Value
If you're heading overseas on holiday or business, you can't avoid being affected by the exchange rate. Regardless of whether the pound is generally stronger or weaker against a particular currency when compared to the recent, say, 12 or 24 month average, is out of your control, but you can take steps to ensure you get the best value for money by finding the most favourable exchange rate on offer - and these days that means going online.
Foreign currency - cash is king
There are a few debit and credit cards on the market today which can help prevent the usual fee hemorrhages associated with using plastic abroad, but there's still no substitute for cash. And we've all been there - the card-swallowing foreign ATM, or the twitchy bank who you forgot to tell about your overseas trip, and so put your account on hold the second they saw it was being siphoned in a far away land. And then there's those plain crooked looking street traders and the like, who you just don't want to trust with your plastic, for fear of having your account drained or your card cloned. The simple fact of the matter is you should never travel to any foreign country without a local currency "float", which will get you out of a sticky situation or save your bacon if cards aren't accepted as payment. Ideally you should split your foreign currency float between your person and a secure depository at your base, such as a safe in your hotel room.
Foreign currency exchange rates - avoid high street exchanges
So, getting hold of some local currency is an absolute must when going abroad, but how do online foreign currency exchanges offer a better deal than high street exchanges such as banks? It's quite simple - banks, building societies and other high street foreign currency exchanges charge more fees and take a greater percentage of whichever currency you are buying. They hit you on a number of fronts by taking commission fees, as well as transfer and receiving fees and also "loading" fees, whereby they typically offer you a 2 to 3% worse exchange rate than the market rate at the time. In short - they are an expensive option.
Foreign currency exchanges at the airport - the most expensive option
Topping the expensive charts when it comes to foreign currency exchange though, are the exchanges at airports and hotels. These exchanges prey on their captive and often desperate audience and charge even greater fees for the mere privilege of their perceived convenience factor. Don't be fooled by signs that read "no commission", because all this means is that they're simply offering you a worse exchange rate than the market rate to make up for the commission they aren't taking. So whereas the actual market rate for US dollars may be $1.50 to the pound, you'll find that these retailers will be offering more like $1.30 to $1.35 at best, even though they're not overtly charging commission. Instead, look for online retailers who charge no commission and also offer very competitive rates.
Foreign currency exchange - buy online now
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