What is the currency exchange fee? How can you minimize it?

When you change your money from one currency to another, the service you use to do so will charge you a fee. This is called the currency exchange fee and it can vary depending on the service provider. Some currency exchange companies will end up being very high, others can be affordable. You should always study the market before you exchange currencies, as you can sometimes get the better deal from somewhere else.

Ways to lower the currency exchange fee

Stay away from online currency orders

Avoid ordering currency online, because this ends up having a very high fee. It’s not apparent in the beginning, but you will notice that very soon as you get into the process. Yes, it does feel very convenient to order currency and exchange it online. But if you want low currency exchange fees, this is not the option for you.

Avoid the traveler’s cheques

These might not be as common nowadays, but they are used by a lot of people still. The problem with them is that buying cheques like these can end up exposing you to high transaction fees and the exchange rate will not be that great either.

Avail any bank offers for exchanges

If the bank has a special offer when it comes currency exchanges, use that to your advantage. Some banks will do that for the first time clients. It will appeal to a lot of people, so might as well use this type of approach. It works great for a lot of people, and you will appreciate the unique advantage you receive in such a situation.

Use credit/debit cards

An interesting way to save on the currency exchange fees is to actually use credit or debit cards. You are likely to get a pretty good exchange rate and low transaction fees when you withdraw via an ATM. These are bringing you better rates when compared to money exchange businesses for example.

Time the currency exchange

If you want to have the least currency exchange fee, time the currency exchange properly. Don’t leave it at the last minute, instead make sure that you study the current fees and how they evolve. If you track the current exchange rate every day, you will find yourself saving quite a lot of money. This method does require a lot of focus and attention from your side, but it will be worth it.

It’s a very good idea to use these tips if you want to avoid any currency exchange fees or at least lower the total costs. Yes, it’s not easy to do so, but with the right approach and focus you can make it work. As long as you take your time and don’t rush the currency exchange process, you will find plenty of ways to lower the overall costs. Yes, it will be a challenge, but for the most part it’s possible to lower the currency exchange fees if you know where to look!