What should I know about the currency exchange market when developing a travel budget?
The excitement that surrounds traveling begins long before the departure time. The details and the budget created for the experience have a serious impact on the success of the trip. Knowing how and when to exchange currency is vital if you want to enjoy all the experiences you plan. One currency exchange can shatter a travel budget and that puts a king size hole in the enjoyment factor. Exchanging money at an arrival airport has always been the custom for some travelers, but in today’s volatile global economic atmosphere that may not be the most prudent way to use your money. A 2000 point swing in the market could cost you an extra $200 for every $1000 you exchange, which can destroy a travel budget in a hurry.
Currency values can fluctuate hourly, so it’s important to get current information about the currency pairs you will be exchanging before you leave home. Today’s travelers know that averaging trades using a reliable currency trader is the most effective way to develop a successful budget. When you spread out your exchanges you’re able to average the cost of the exchange. You can use those real costs to create a budget using the value of your host country’s currency instead of using an estimated figure.
Where is the best place to exchange money?
Banks have always been the first choice when it comes to exchanging currency. Banks charge a fee for every exchange and may only post one rate a day, which may not be the real time rate. Banks make exchanges to make money and credit cards take that concept a step further. Credit card companies create their own exchange rate and add a profit, so exchanging money using a credit card can get expensive. Credit cards also add a surcharge to travel purchases so you never know how much the trip costs until you get the statement.
Airport currency merchants may have hidden fees in the exchange rates. Most travelers use them to exchange a small amount of money, especially if they see that a favorable fluctuation occurred while traveling, but it’s best to avoid them if you have a large amount to exchange. A professional currency trader who watches the currency market hourly can give you the best exchange rate. When you average your exchanges using a reliable currency trader you eliminate currency surprises that include hidden fees surcharges and bogus exchange rates.
Other travel points
Some countries have cash limitations. Travelers can only carry the allowed amount and if a random search at a customs point finds that you exceed that limit, officials can confiscate your money. Cash should always be carried in a hidden pocket or a money belt that’s secure and is out of sight. Hotel safes and other security measures should be used when you arrive. Common sense and awareness will eliminate stress and increase your sense of well being.