Exchange Rates – Should you take cash, travellers’ cheques or cards?
Exchange rates can mean you end up paying more depending on the way you take money abroad.
When you're travelling abroad deciding whether you should take cash, travellers' cheques or use your credit or debit card is often a mystery. Which has the best exchange rates? Will the ATMs abroad charge? Is it safe to carry cash?
If you think exchange rates are all roughly the same, you should be more cautious.
Exchange rates and cash
If you're going on holiday, you'll want to know the exchange rates for cash because no matter how little you want to exchange, you know it's useful to have some cash on you when you arrive in a foreign country for immediate necessities such as buying water, food or getting a taxi. For most of us, having cash gives peace of mind. But the exchange rates can vary wildly and it's important that you shop around. Exchange rates can vary by up to 5%.
Where to get good exchange rates
Exchange rates vary. Banks can be expensive as can exchange bureaus in travel agents or post offices, whereas using a specialist foreign exchange company can be considerably cheaper. An investigation by the BBC revealed that could be up to 5% cheaper. By extension if you are buying property abroad or doing business transactions, going through specialist foreign exchange companies is more economical. It's important to shop around and not see exchange rates as fixed.
Exchange rates and fees
Exchange rates and fees vary and cash may be the cheapest way of exchanging money, but it simply isn't safe or practical for a holiday abroad that lasts more than a few days. The plus side of credit cards is that you are covered from faulty purchases valued at over a hundred pounds; you also use wholesale exchange rates rather than tourist rates. However, credit cards have a loading charge and hidden fees such as hidden levies and handling charges on foreign transactions - so credit cards can be costly.
Hole in the wall
Drawing money out from holes in the wall can be the most costly method with loading fees, handling charges and interest all kicking in. Even if the exchange rates are favourable – it can be an expensive way of exchanging your money.
When it comes to foreign currency and exchange rates, there are no fixed rules. Exchange rates vary and it's important that you shop around.
Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money with us by getting better currency exchange rates than with your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk