Did you know that around 45,000 flights are handled by the FAA every day in the United States?
Thousands of these flights are international and leave major airports in New York City, Los Angeles, Atlanta, and Denver. When it comes to traveling internationally, there are a few things that you should always keep in mind. At the top of this list should be exchanging your money.
While many people think that they can only exchange currency at banks, there are other options available. Other options may even end up being better deals. It’s important to understand all your options so that you can make the most of your money when you go overseas.
Interested in learning more about currency exchange? Here’s a closer look at exchanging currencies and what’s the best option for you.
Exchange Currency
Things to Consider When Buying Foreign Currency
When it comes to exchanging your local currency for a foreign currency, there are a few things that you should always consider. These important notes will help you secure the best solution for you when you’re overseas. Here’s a quick guide to help you get the best deal.
1. Exchange Rate
The most important thing to keep an eye on is the exchange rate. In simple terms, the exchange rate is the mathematical rate of one currency to another. The rate is what dictates how much foreign currency you will get for each unit of your local currency.
Most exchange rates are showcased in two ways. The first way is how much foreign currency you will get for one unit of your local currency. The second way is to describe how much one unit of foreign currency will cost you in local currency.
This makes it easy for you to see how much money you will be left with once you convert it to the right currency. Here’s a quick example to help you understand the calculation:
If you’re going from the US to South Africa and want to exchange $100, the exchange rate will let you know how many South African Rands you will have. If the exchange rate is $1 / R18, this means that you will get R18 for every $1 you exchange. Since you’re exchanging $100, you will receive R1,800.
Traveling abroad through Denver International Airport? Reserve money now for your upcoming trip.
2. Exchange Fees
As mentioned above, the exchange rate is influential in how much money you’ll receive after you convert your money. However, you should also pay attention to the exchange fees that are added to the transaction. Banks and vendors have unique exchange fees and will take this out of your funds once it’s converted.
If you convert your money at a bank and they charge a 3% exchange fee, this means that 3% of your funds will go to the bank. Building on the last example, if you were to convert $100, the bank would take $3 as a fee.
This would leave you with $97 that will be converted according to the exchange rate. This means that you will be left with $97 x R18 which is equal to R1,746.
3. Transaction Fees
Transaction fees are slightly different from exchange fees. Some banks will add another fee to every transaction that you want to make with a foreign currency. In some cases, this fee is a percentage that’s added to the exchange rate.
This means that different banks and vendors can have different exchange rates. These fees are often very small but can add up if you’re converting larger sums of money. These fees can range from 1% to 3% depending on what bank you’re using and how much money you’re converting.
4. Convenience
Convenience is important when it comes to exchanging your money. The days leading up to your international trip are often very busy. This means that you may not have time to go stand in line at the bank to exchange your money.
This is what makes other alternatives like converting money at the airport so convenient. The lines are shorter, but you can make use of the time that you’re in the airport anyways. This means that you don’t have to stress about running around before your trip.
If you want that added security, you can also reserve money at the Denver International Airport. This will guarantee that you’ll have your money waiting for you when you arrive.
5. Exchange Times and Limits
When exchanging money, it’s important to understand the regulations and rules that are associated with holding foreign currency. In most cases, you’re going to need to present an airline ticket or your passport before getting a foreign currency. In addition to this, there may be limits to how much you can convert.
This should be taken into consideration so that you have enough funds for your entire trip.
How to Exchange Currency
If you’re planning a trip overseas and want to know how you can exchange your funds, there are a few options available to you. The two most popular options are to exchange your money at the bank or at the airport before your flight.
Here’s a quick breakdown of each option.
Exchange Currency at Banks
Banks are often the first place people think of when it comes to converting currency. While some banks do offer this service, it’s not available everywhere. This means that you should always call your local bank to make sure that they have a forex department.
When it comes to exchanging currency at a bank, you should always give the bank a heads-up. This is because it’s not guaranteed that the bank will have enough foreign currency on hand for you.
This could end up taking much longer than expected.
Exchange Currency at the Airport
Exchanging your money at an airport is often the best choice. This is because the exchanges at the airport are always guaranteed to hold foreign currency for you. Unlike banks that may need to order cash for you, airport exchanges have everything on hand.
This saves you time and makes the entire experience more convenient for you. Airport exchanges still have competitive exchange rates and maintain low fees. This helps you get the most out of your money every time.
Other Exchange Options
The most popular options for exchanging your money is at the bank or at the airport. However, there are a few other options that you have to access your money when you’re overseas. Here’s a quick look at these options along with the benefits of each.
Credit Cards
Credit cards are popular for traveling overseas. Many credit cards offer great exchange rates that are updated every minute. This means that you’re going to get the most accurate exchange rate possible.
Some credit cards incentivize you to travel and spend money with the card. Depending on the credit card company that you use, you may benefit from additional rewards on all your spending. However, it’s important to remember that you will still be charged an extra fee for every transaction that’s not completed in US dollars.
This means that the bank or credit card issuer is still making some money off every transaction that you make. If you plan to use your card when you’re abroad, don’t forget to let your bank know. This is important so that your bank understands you’re overseas and your card hasn’t been cloned, copied, or stolen.
Forex Accounts
If you love the convenience of a card but want the best exchange rate possible, consider opening a forex account for your trip. Forex accounts work like additional bank accounts but let you save money in a foreign currency. Not all banks offer forex accounts, so don’t shy away from shopping around for the best deal.
Forex accounts let you load money into the account whenever you want. There is a transaction fee associated with loading funds into the card, but you get to choose how much and when you want to buy that foreign currency. Once that account has foreign currency in it, you can use it overseas.
The benefit of this is that there’s no transaction cost every time you swipe your card. Instead, you pay a transaction fee when you load the card with a foreign currency. This essentially leaves you with a pre-loaded debit card that you can use in another country.
Get Ready to Travel Abroad
When it comes to preparing for your trip abroad, exchanging currency is essential. While you can use your credit card when you’re overseas, this tends to come with tons of fees and added costs. If you want to exchange currency at banks, they often have limits and you’ll have to settle for an older exchange rate.
This is why exchanging your money at the airport is the best option. If you’re flying out of Denver International Airport, World Wide Money Exchange is a reliable exchange that you can count on. Contact us for more information about our services.