Currency conversion is a complex business. Like all forms of business there exist unscrupulous dealers in this industry. In order to avoid getting shortchanged when changing your money here are 4 currency conversion tips guaranteed to help you.
1. Use Online Money Changing Companies.
Reputable money changing companies that deal in a wide range of currencies provide customers with some of the best quotes in the industry. Such money changing companies negotiate the current rates for their customers straight from the trading floor at the time the customer wants to convert his money. This means customers are guaranteed up to the moment rates at all times throughout the day. If a customer is not happy with a given rate during a given time he can check in later to determine if the currency rate is up to his liking. This method differs from that used by banks and other brick and mortar companies that set their rates at the beginning of each day to ensure that regardless of any currency rate changes they will never be short. This is why banks often display that they sell currency at high rates but buy at much lower rates. They have calculated the eventual fluctuations of the currency throughout the day and factored it into their numbers. By doing this banks and similar institutions are able to make hefty profits off their customers because they do not offer the best rates possible. Money changing websites on the other hand are much more efficient ensuring customers get the up to the moment value for their currency.
2. Avoid using airport exchange booths.
Airport exchange booths are notoriously known for ripping off customers, more so unsuspecting tourists. They have been known to charge conversion fees of up to 30%. This means, if you’re converting $1000 you will inevitably lose $300 in the process. Apart from the conversion fee there is also a “service” fee which is deducted from the amount you choose to change. In essence, the “service” fee is the same as the conversion fee but airport currency bureaus use the terminology to confuse some and in the process make even more money. Don’t be surprised if you lose up to 35% of your initial amount at these stations. Their rates are always much higher than those of banks – further proof that airport exchange booths should be avoided at all costs.
3. Use money conversion apps
If you’re a frequent traveler or you constantly need to change money it is advisable to use money conversion apps to help you determine the current rate of exchange for your currency. There are several android and iOS apps that offer up to date information to ensure users are able to perform the most accurate conversions. Such apps are very useful in detecting unscrupulous third party offers since they are usually connected to the stock market of particular countries. There are also some apps which are linked to the international markets which can also be used. Top currency apps, in addition to providing currency exchange ottawa rates, also come with other features such as the ability to operate in offline mode as well as the ability to predict future currency trends. The latter helps determine the best time to convert cash in order to realize the best returns.
4. Avoid buying with your native currency in countries that accept it as a second currency.
If you’re traveling to a country that accepts the same currency that you use in your home country you may be tempted to use that currency to purchase items instead of converting to a local currency. This may look like a good alternative but in actuality you will be losing money by doing so. Using a second currency to purchase items in a foreign country is a surefire way to get shortchanged. The reason is that for every purchase you make the cashier at the store converts your money using the store’s exchange rate (which is very poor) into the local currency. Unbeknownst to you, your money is being changed – at a lousy rate – whenever you make a purchase using the country’s second currency. To avoid this, it is better to convert your money into the local currency beforehand and then use it to buy something. In order to maximize on your currency conversion you can use money conversion apps or even online money changing companies to get the best deal.