Travelling abroad can be expensive since you will need to use a different currency, than the one you are used to, for purchases and everything else related to your trip. However, you can make it cheap by learning some currency exchange hacks.
Consequently, when you make a money exchange from one currency to the other, you are charged some fees. These fees are often hidden and can be high if you are not careful in avoiding them.
In essence, the currency exchange fee is the difference between the exchange rate the moneychangers and banks decide to apply and the real exchange rate that is traded in the Forex market.
So how can you avoid this currency fee even when using the best currency exchange Ottawa? Here is how.
Seek no foreign transaction fee credit cards
If you are an avid traveller, it would be better to get a credit card that is specifically meant for travelling. These types of cards often offer low to zero fees on all foreign transactions. Besides, they are often connected to a wide range of international ATMs. You can even get luckier with them, as they sometimes waiver any extra currency conversion fees.
However, getting such a credit card can cost you higher annual fees, but not as much as the money, you will spend abroad, especially when it comes to currency conversion.
Make use of debit cards
Debit cards often charge foreign currency exchange fees when you are using it abroad, so the best thing to do is to look for one with low or zero fees. Moreover, debit cards never incur any interest and you will not be charged any cash advance fee.
Likewise, if your bank has ATMs all over the globe then you can save on some withdrawal charges wherever you are.
Opt for frequent flyer credit cards
Such rewards are often expensive, especially when it comes to the interest rates and annual fees. However, some have no foreign transaction fees. Therefore, if you can make your repayments each month, then it would be a great idea to be rewarded for your abroad trips, but make sure it has no foreign transaction fees.
Order currency before you travel
One cost-effective way to get the local currency of your destination is by ordering it before your travel date. You can use different currency converters to make a comparison between the bank’s rate and the market rate.
However, take note that bank fees may apply but it can be waivered at times, if you are ordering many cash. Just make sure you make the bank call before your travel day comes, as they may not have the currency you want at hand or may charge you for fast delivery.
Research the exchange rate
This is the only way you can know if you are getting the best exchange rate with low to zero fees. Therefore, before you embark on your journey check with different currency converters for a better rate. If it is a long trip, you can keep track of the exchange rates to stay updated with the major changes, as currency conversion rates change constantly.
Avoid currency exchange kiosks
You should always avoid the currency exchange kiosks located near tourist locations and at the airports. This is because they are likely to have a higher exchange rate as well as service fee when it comes to currency conversion.
As much as they may seem convenient and advertise no fees for your currency conversion, they are the worst and usually have poor rates and higher fees, so you are better off with a no fee travel credit card.
Therefore, it pays to prepare for such things as currency conversion when you are planning to travel abroad. Otherwise, you will end up exchanging your money at a bad rate with higher fees.