Money Exchange Advice for Travelers |
Posted: May 26, 2018 |
With the advent of technology, it has become a lot easier to find a hotel or flight at cheap rates. This has made travelers aware of how exchange rate can impact their financial decision. A few years ago, the U.S. dollar and Canadian dollar were at the same level, but CAD has depreciated over time. Exchange rates are constantly changing, and no one has control over it. However, being a traveler, what you can do is find an alternative way to minimize your overall cost. Following are some of the things you should consider that will enable you to keep the cost to a minimum when exchanging money: When Should You Exchange Money? It is very important to know when you should exchange money, especially if you travel very frequently. To answer this question, you should time the market. Buy a defined amount of cash a few times before the date of your trip come closer. For example, if you want to exchange 500 Canadian dollars with U.S. dollars, divide the amount into 4 parts. Each time you will get a different rate. On average, the rate charged will neither be too high nor will it be too low. However, the only setback is that you make a purchase in your home country where the rates may not be so good. Use Credit Cards to Avoid Unnecessary Fee Instead of keeping too much cash with you, you can also go for credit cards. There are so many Canadian credit cards that do not charge foreign currency exchange fees. These cards are specifically designed for travelers who frequently move from one country to another. In addition to that, you can also get a Reward VISA card or a Reward Premier VISA as it also gives you a bonus in some form whenever you carry out a transaction. Please note that if you are not using any of the above-mentioned cards, you may be charged an additional fee of 2.5 percent at the time of making a purchase. Also, if you are given a choice to be charged in your home currency or a local currency, always choose the local currency. The reason is simple; rates charged by merchants can be a lot higher compared to the rate used by MasterCard or VISA when you execute a transaction in local currency. Look for Other Exchange Options One of the most effective exchange options is to use ATMs in a foreign country. Using their local ATM is the cheapest way for travelers to save money. When you do a transaction using the ATM in a foreign country, it only charges the spot rate and an additional foreign transaction fee of 2.5 percent. It is quite possible that your bank might also charge an additional fee, but in some cases, it can be waived. Use the Services of Foreign Exchange Dealers The foreign exchange dealers are another great option for Canadian travelers. They are experts in their field and charge very attractive rates to their customers. There is a is a currency exchange in Toronto that provides the best rates to its clients. They buy the currency in bulk, which enables them to pass on the discount to the people in addition to the free wire transfers. Moreover, due to high competition in the market, they try to offer the best rates to their customers. Not only does it provide a fast transaction medium, but also ensure the security of funds. In fact, if you want to carry out same day money transfer, you can do it via online payment or you can do it with your bank account. By using your bank account, you will be able to transfer money for free. It enables you to do everything online from the comfort of your home. These are some of the most cost-effective options you can avail being a traveler as you won’t have to carry cash with you all the time. Besides, you can access the money and shop whenever and wherever you want at reasonable rates.
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