Buying currency is quite a simple thing to do, you just give a provider your US Dollars and buy the currency that you want. Getting a good deal when you buy currency is a different issue.
To get a really good deal when you exchange money, it pays to do a bit of research. Firstly, you need to understand exchange rates. The rates that are quoted on Yahoo Finance is not the same rate that you will get at your bank or the local bureau de change.
If you want to get an idea of the exchange rate, you can try using Google. Type “1 USD to EUR” if you want to exchange US Dollars for Euros. Just substitute the currency symbol for EUR. Just remember that this is only the market rate, not the actual rate you will get from wherever you are buying currency from.
Get online and look at the rates from some providers. The rates you are offered will be adjusted for fees and a profit margin. You need to compare the rates including the fee that the providers charge to work out how much you will get in hand.
Some places will say zero fees, and this is an ideal option to save as much money as possible on your currency exchange purchase. Low fees will mean that you avoid what can sometimes and 10 to 20 percent or more in costs to your currency exchange. If you are planning on exchanging a substantial amount of dollars, the difference can be quite substantial.
Low or Zero Fees
Find out which provider offers no-fee transactions or where they will waive a transaction fee for large deals over a set amount of currency. These providers also often give you better exchange rates. These providers work out well for people who want to exchange larger sums of money, but they are also good with lower sums as well.
You can save money by watching the rates
You can time your currency purchase to a time when current rates will get you the best deal. Sometimes, you can fix a target rate at a foreign exchange broker but this is not freely available to the average person.
Don’t go for the first broker online.
Compare all the rates together with the fees. Consider also their delivery times and costs of shipping the currency to you. Xchange of America offers low cost shipping and free pickup from their outlets if you order your currency online.
If you are a corporate customer or usually deal with large amounts of money that need exchanging, you can sometimes negotiate for a better exchange rate and pay minimal costs.
Don’t change money at the airport
Don’t wait to change your money at the airport before you next travel. They currency exchanges at airports are notorious for their rates. They almost always make a bigger spread and therefore a higher profit than an online currency exchange service. Get prepared earlier and order your currency online. You will get more foreign currency to spend when you travel.