If you are going to travel overseas, chances are you’ll need to exchange currency. While a lot of countries may accept US dollars, there are those where it just won’t be possible. If you are visiting the UK for example, you’ll need to have Pound Sterling (GBP) in order to get by.

Some people prefer exchanging currency before they go on their trip, while others exchange it at their destination. Whatever your preference, you do need to be aware of our basic currency exchange tips to make the process a bit easier. Let’s take a look at common things you need to be aware of when exchanging currency.

#1: Know the Exchange Rate

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The exchange rate indicates what you will pay for the foreign currency. Before going on an overseas trip, find out what the exchange rate is and how much currency you can get for your holiday budget.  You can do this by searching online for the exchange rate, or downloading a Forex trading platform from a Forex broker.

#2: Know the Difference Between Buy and Sell Rates

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The first thing you’ll notice when buying foreign currency is two different rates; the buy and sell rate. The buy rate is what the bank offers for your currency, while the sell rate is what you’ll pay for the foreign currency. The difference between the two is their profit.

#3: Shop Around

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Whatever your needs, you’ll be able to exchange currency before you leave or when you arrive. You can even use your debit or credit card to withdraw currency. Make sure you get the best rates and keep an eye on the Forex exchange.  The easiest way to do this is by download a Forex trading platform.

#4: Make Use of Tools

Just like you will have the option to make use of various currency exchange institutions, you will also be able to use different tools to calculate the current exchange rate.

Online

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Online you will find a vast variety of currency conversion tools that will indicate the current exchange rate. Keep in mind however that these calculators will not display any extra fees. OANDA provides an excellent Forex Trading platform to monitor Forex rates.

Apps

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The majority of currency converters out there will have an app or Forex trading platform that you could download on your smart device for your convenience. We highly recommend using the XE.com app or the Oanda Forex trading platform, fxTrade to monitor exchange rates.

Manual

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If you find yourself in a pickle and unable to make use of any of the online currency converter calculator tools, you can calculate the cost of items in a foreign country by using your calculator (but this is rare now a days as everyone has a cell phone, and can easily download a Forex trading platform app).  All you need to is the exchange rate and you can work out what you are paying for items in your local currency.

Traveling and exchanging currency should be a breeze now that you know the basics. The best advice we could offer is to shop around for competitive buy and sell rates before exchanging cash at the first and best place you find. But most importantly, have fun on your trip!

You are never too young to start investing, whether in the stock market or trading Forex. If this sounds like something you would like to pursue, be sure to read Investopedia’s comprehensive beginner’s guide to investing.


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