When it comes to exchanging currency, you want to get the best foreign exchange rates possible, minimize unnecessary or expensive fees, and skip the hassle of converting money in person. Whether you’re traveling, or sending money to loved ones overseas, knowing a few tips about foreign exchange rates, fees, and convenience will have you acing your currency conversions.
Finding the Best Way to Exchange Currency
A currency exchange rate is the value at which one country’s currency will be exchanged for another country’s currency. Currency conversion rates can rise and fall all day, depending on supply and demand in the market. But most banks only update their rates once a day if you are monitoring them. So what’s the best way to exchange currencies among countries?
Paying attention to exchange rates is essential if you regularly exchange money or have travel planned. Since exchange rates move up and down, by tracking them day to day (or even week to week depending on your needs), you can time your exchange when it’s most favorable, ensuring you get the best currency conversion rate possible. You’ll also be better able to budget for your conversions as you’ll be aware of how much your money transfers will cost along with additional fees charged by your service provider.
In contrast, not tracking exchange rates means you could pay more—and consequently have less money after the conversion, giving you less to take home or to send to others. To find foreign exchange rates, use a currency converter like the Western Union Currency Converter tool that lets you conveniently monitor online global exchange rates and send money too.
Almost any overseas traveler needs to exchange currency at some time, and it can cost you if you’re not prepared. Banks and credit unions often offer their members favorable currency exchange rates before they travel, and often without any fees. Some institutions may provide currency exchange services over the phone or online; others may have the money delivered to you or at the branch for pickup. Check with your institution’s branch or online for the best way to exchange currency for you.
Foreign Exchange Fees While Traveling
ATM fees
Before traveling, ask your local bank how they manage ATM withdrawals in other countries. They may not charge fees for using foreign bank ATMs, whereas a kiosk at a mall, airport, or other location may cost you. Regardless, a small ATM fee may be a better way to get a small amount of cash in a hurry than a staggering foreign exchange rate.
Foreign transaction fees
If you use your credit card while traveling in other countries, depending on your card and financial institution, every foreign transaction fee may cost you up to 3% on each purchase. So a $4,000 hotel stay charged to your credit card with a foreign transaction fee of 3% means $120 in additional charges. Similarly, $500 in charges overseas could costs you $15 in fees. Before you travel, check with your bank on its fee policy. Some credit and debit cards allow you to buy items without foreign transaction fees, so find out which cards are best and apply for one.
Airport currency exchanges
Try to avoid airport currency kiosks and counters, and other currency exchange stores as they are known for having both add-on fees and the highest rates.
Convert and Send Money Around the Globe
When you’re sending money to friends and family in another country—or to yourself to pick up when you reach your overseas destination—Western Union lets you see exactly how much will arrive in the local currency. You can lock in your rate when you transfer your funds, so you know what amount to expect on the other end. Set up a money transfer account with a specialist provider like Western Union. Or use the reliable money transfer app on your mobile phone to track the exchange rate and transfer the money when convenient. With Western Union’s commitment to security, you’ll be able to send money reliably from the U.S. for pick up in over 200 countries and territories.
