Currency exchange fees can take a huge bite out of a travel budget
When you plan a trip to another country, the excitement that surrounds the trip can have an impact on your travel budget. It’s easy to get caught up in the adventure and forget about some of the basics that can make your trip even more enjoyable, especially if you’re visiting an exciting place like Prague. The fees that banks, credit card companies, local exchange booths, airport merchants and hotels charge when they exchange currency for you can have a major impact on the amount of money you have to spend while enjoying the Czech Republic. Currency exchange merchants have a way of making a profit quietly; their profit is hidden in the exchange rate. They also charge transaction fees and surcharges to cover their expenses, so it’s not usual to blow 3 to 10% of your budget on unnecessary fees and inflated exchange rates. Those expenses can be avoided if you consult with a professional currency broker in the planning phase of the trip.
A trip to Russia, Argentina or Vietnam can be very expensive for several reasons. Those currencies tend to fluctuate more than normal due to economic reasons, so if you wait until you reach your destination to exchange money, you might be in for a couple of surprises. Even though the Czech Republic may not have these issues, every currency pair may experience a value surge, which can destroy a budget, plus the airport merchant expects you to help pay the high airport rent by accepting the high fees and inflated exchange rates they charge. Hotels know you like the convenience of exchanging money with them and they make you pay for that luxury with crazy currency rates and high exchange fees. Credit card companies think they have a captive audience, so they add fees to every exchange transaction, plus they add a surcharge to every trip purchase. Use your ATM card instead of a credit card when you travel, the transaction fee is less, there is no surcharge and the exchange rate is usually better.
Find a professional currency broker
In order to reduce currency exchange fees and to utilize the maximum value of your money when you exchange it, find a professional currency broker before you start planning the trip. A professional will help you develop an exchange strategy that will protect you from value surges in your currency pair. They will eliminate or reduce the fees you pay to exchange your money, so you can develop a travel budget that is accurate. A broker will show you how to average your exchanges, which will save you money if your currency pair has been fluctuating sporadically. A currency broker watches the currency market every hour and will give you a real time rate, which will reduce your currency exchange expense. A currency broker does make a profit on every exchange, but you save money because there are no surcharges or excessive fees involved in the transaction. Your budget is much more realistic and the value of your currency is more accurately represented in your host countries currency.
Other travel tips
Some countries limit the amount of cash you can carry through customs. Check with your broker and stay within that limit or some of your cash could be confiscated. Always carry cash in a hidden pocket, money belt of leg pouch that is secure and out of sight and use hotel safes when you reach your destination. Follow local security tips and use common sense. It is your best security tool when you remember to use it.
ForexTraders.com provided this article to help you save as much money as you can for a trip overseas. To learn more about forex and currency trading make sure to visit the site.
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