When buying foreign currency either for a holiday or for an overseas payment of some kind it can be difficult to know whether you are getting the best possible deal. With so many providers of foreign currency on the high street and internet offering different deals how can you determine which is offering the best option for you?
There are two main factors you must take into consideration:
Exchange Rate
Commission
Exchange rates
It is vital to look for the best exchange rate which will enable you to get the most currency for your pound! No matter what currency you are converting your money into or the amount, the better the exchange rate the more money you have.
Commission
Many companies will offer commission free currency and unfortunately commission free does not mean the best deal! Large banks and travel agents will often offer an uncompetitive exchange rate in order to make up the losses from offering commission free currency leaving you seriously out of pocket!
If you are planning a holiday abroad check out my top tips on how to get the best exchange rate:
- Buy your currency before you get to the airport. Airport rates can often be the worst and as well as giving you a low exchange rate they will also charge you a commission fee as well.
- Check out our comparison tables that show what rates and fees the leading UK currency providers are offering. Here you can compare like for like to make sure you are getting the best possible deal.
- If you require more funds whilst away withdrawal money from an ATM instead of over the counter at a foreign bank or bureau de change.
- Avoid using credit cards to withdraw money whilst overseas as you will incur hefty charges.
For large payments abroad consider the following before making your transaction:
- Contact a currency broker and use their expert knowledge to learn the right time to convert your money.
- Using a currency broker instead of a high street bank can save you hundreds if not thousands on a large transaction as their rates are far more competitive.
- Check out our comparison tables to see rate and fee information from the UK’s leading banks and currency brokerages.
- If rates are good at present but your transaction is not required for a couple of months discuss the option of buying a forward contract with a currency broker. This allows you to agree an exchange rate for a set date in the future. You will be required to pay a deposit (generally 10%) for this service but will be able to obtain and keep a great rate.
