New to travel and all the intricacies it comes with, such as exchanging currencies? Seasoned travellers will remember some harsh lessons they’ve learnt about exchanging and managing money in other countries – many of which tend to be costly. For new travellers, you get to learn from the mistakes of others.
In this article, we’ve accumulated a few of the common mistakes people make when they exchange currencies to help you avoid doing the same thing when you’re just getting started.
1. Not doing enough research
First of all, exchanging currencies requires you to do your due diligence, and do some research. Say, for instance, you’re selling or buying US dollars. You’re going to want to find the best currency exchange to go through with the most reasonable fees and the best exchange rates for whatever currency you’re exchanging the dollar for. People often wait for the airport to exchange cash or select the first website that claims to be an exchange with little thought of the risks.
2. Exchanging too much currency in one go
Exchanging too much money is another mistake travellers often make. When you travel around another country, having cash on you is important to cover unexpected expenses that debit cards can’t cover. However, carrying around too much cash can be a safety risk for you and attract unwanted attention. In addition to that, currency exchanges often charge a commission based on a percentage of the amount you’re exchanging. For example, say you’re exchanging for $500. The exchange might charge you a 10% commission fee or higher, which will cost you $50, leaving you with $450. Rather, exchange a smaller amount that’ll reduce the fees you have to pay but will still be sufficient if you run into trouble.
3. Not checking the commission fees and charges
Following our last point, many people don’t check what the commission and exchange fees are when they go to a currency exchange, they approach every exchange with naivety, treating them like they’re all the same. Unfortunately, they aren’t. Some exchanges hike up their exchange fees in order to turn a better profit. As a result, they’ll charge you significantly more than other exchanges. So, how do you find the right exchange then?
If we consider our first point again, you need to take the time to do your research. Ideally, you should try to find a reputable exchange a few weeks before you travel. This will give you the time you need to do your research and choose the best exchange for your needs.
4. Not keeping their money safe
It’s unwise to travel around a country with large amounts of money exposed or put in easy-to-find places. Many countries have pickpockets who have well-trained eyes to notice an easy target, and their hands are so fast that you wouldn’t even notice that your wallet is gone. For that reason, try to keep your cash on hand in a safe place. For example, if you have an inside pocket closer to your chest in your jacket, keep your wallet there. Also, keep a watchful eye on those around you and hold onto your luggage.
5. Not holding onto your receipts
While this might not happen often with a reputable exchange, sometimes problems can occur, and if you don’t have your receipt for the exchange, they might not be able to help you. Likewise, it’s also important to keep track of your cash, especially if you’re in an area that doesn’t use cards much. You don’t want to overspend with your cash and then find that you run out before you can find another exchange.
6. Forgetting to factor in exchange rate fluctuations
Often, when we travel, we’ll watch the exchange rates, hoping for them to go up so we get more value from our exchange. However, this is a gamble. Exchanges fluctuate on a daily basis. On one day they can be great, and on the next, they can completely drop, leaving you to spend more to get the amount you need in the currency you’re exchanging too. For this reason, if the exchange rate is good at the moment, exchange your funds. If need be, you can always exchange more if they go up.
7. Exchanging money at an unfamiliar place
This might sound like a contradiction if you’re travelling for the first time because an exchange would likely be unfamiliar to you. That said, we’re referring more to exchanges that aren’t well-known in general. For example, you might be walking down the street and see a no-name exchange in the corner of the street. Avoid these exchanges. For one, they have no assurances and have the freedom to set their own compensation fees, so they might cost you more.
8. Using airport exchanges or hotel exchanges
Often, this is unavoidable, but airport and hotel exchanges also generally cost more. If you plan on exchanging cash when you arrive at your destination, rather research some reputable exchanges near the area you’re staying in or near the airport and go to them.
Final Thoughts
So, to sum it up, just do your due diligence when you’re looking for a currency exchange. Avoid ones with bad reviews and no brands, and look for ones that are reputable and easy to use. Also, consider their fees and observe the exchange rate to make your exchange at the right time. You can’t go wrong by doing this.