The Currency Exchange and Pre-Vacation Planning

When is the best time to exchange money for a multi-country vacation?

Planning a vacation in several countries takes some research. Finding the perfect hotel in each country, plus researching restaurants and local attractions takes patience and some help. A vacation budget is always the top priority. We all want to have enough money to comfortably enjoy the trip. The Euro has made traveling through Europe a little easier in terms of currency exchanges, especially if the countries you’re visiting are part of the European Union. The currency exchange market is constantly fluctuating, so even the Euro’s value can change quickly and that can ruin a budget in the blink of an eye.

Waiting until you arrive at Vantaa airport in Helsinki to exchange U.S. Dollars for Euros may be a costly mistake, if the Euro has gotten stronger and moved 1050 points in just a few days. That change may cost you an extra $105 for every $1000 you exchange and that doesn’t include the exchange fee. If you exchange money at different times while you’re planning the trip, you can offset currency fluctuations, plus you know exactly what each exchange cost, so you can use exact figures in your budget. Getting some help and averaging your exchanges reduces your exchange cost and should give you the maximum return for the total amount of money you need for the trip. Averaging is especially important on extended vacations where more money is needed for expenses.

Where should I exchange money before the trip?

Most people assume that banks give the best exchange rate. Banks add a fee to every exchange and may only post a morning rate and an afternoon rate which means you may not get a real time rate. Credit card companies use their own rate which includes their profit plus they add a surcharge to every travel purchase, so you don’t know how much the trip costs until you receive their statement. Using a debit card especially in an ATM machine to exchange money will definitely cost you more. Airport exchange merchants may add a hidden fee in the rate which means you have less money to spend on the trip.

A reliable currency trader can help you average your exchanges while you’re planning. You get the real time rate every time you exchange which eliminates additional fees, surcharges and bogus exchange rates. A professional will help exchange your money at the right time, so your budget is based on real costs not estimates.

More Travel tips

Some countries may restrict the amount of cash you can carry through customs. If a customs search finds more cash than the limit allows, your money may be confiscated. Always carry cash in a hidden pocket or a money belt that’s secure and out of sight. Carry just enough cash in a wallet or purse for incidentals and use hotel safes and other security precautions when you arrive at your destination.

To learn more about currency exchange market, please visit ForexTraders.com where you will find useful articles on brokers,forex analysis, strategies and even a free course to familiarize yourself with this volatile but potentially lucrative market.

Text by Forex