Currency Exchange Strategies for an Exciting Vacation
Exchanging currency while planning a vacation can save money
Traveling to another country like beautiful Costa Rica is always exciting but it can also be a real test of patience, even if you get some help from a professional. Making a checklist, booking the right flights, hotel rooms and making popular restaurant reservations are the foundation for the trip and an accurate budget is the fuel that makes the trip happen. In order to organize the trip properly a realistic budget should be developed, which includes the value of the currency you’ll use on the trip. If you begin to follow your currency pair’s movement while you’re planning you should be able to save money, avoid currency exchange surprises, and take a great deal of stress out of planning the trip.
If you consult with a professional currency exchange broker while you’re planning, you can design a currency exchange strategy that makes your budgeting process a more accurate exercise. A broker will help you average exchanges or will explain how to use future contracts to exchange money. A currency broker will give you a real time rate without hidden fees, surcharges or inflated exchange rates and the broker is always available to answer questions or to help you use other strategies while you’re on vacation.
Banks and credit cards can be expensive exchange strategies
It’s easy to forget that the currency trading market is a for-profit business. Banks could care less about your personal exchange strategy, they’re interested in profit. Banks charge a transaction fee every time you exchange currency and some banks charge an additional 2 or 3% foreign exchange fee, plus they may give you an exchange rate that’s not a real time rate. Their profit is built into the exchange rate. Credit card companies will use an exchange rate filled with profit, plus they charge transaction fees that could cost you 2% to 4%, depending on the situation. Credit cards also add a surcharge to every trip purchase, so you never know how much you’re spending until you get the statement and that’s always budget breaking information.
Airport merchants, hotels and retail shops know you like the convenience of exchanging money with them and they make you pay for it. If you use one or all of those merchants to exchange money, you’ll have less to spend on vacation necessities. A reliable currency exchange broker will assist you if you need to exchange more money while you’re traveling without hidden fees, surcharges or profit filled exchange rates. A broker does make a profit, but you know what it is before you make an exchange, so you can incorporate it into your budget. Once the transaction is complete the broker will overnight your money using a secure delivery service.
Other travel tips
Some countries limit the amount of cash you can carry through customs, so check with your broker and stay within the legal limit. Make sure to always carry cash in a money belt, hidden pocket or a leg pouch that’s secure and out of sight. Use hotel safes when you reach your destination and follow local security measures when you leave the hotel or the resort. Remember common sense if your best security tool when you use it.