Currency exchange can be a pain in the backside, and even currency exchange firms like Knightsbridge FX admit to it. Whether it’s travelling abroad, transferring money to your family that’s overseas, or simple international business payments, there’s a lot of things to consider when getting currency exchange. Lots of fees, lots of providers; one has to be smart when getting money exchanged.
Here’s some tips.
Regardless of whatever it is you’ll be doing, it’s smart to have a plan before diving into whatever it is you’re going to be doing. For currency exchange, firms like Knightsbridge FX have listings on their sites or their apps to let you see what the exchange rates are currently. Find the deal you like, then exchange your funds.
Learn what you’re dealing with.
Some costs associated with currency exchange are upfront, ensuring transparency. Some, not so much. As such, it’s paramount that you understand exactly what it is you’re paying for. Like any other company, foreign exchange providers like Knightsbridge FX need to rake in profits to stay in operation. Here’s how they do that:
- Commissions, flat fees, handling fees, or minimum charges when exchanging;
- A spread in exchange rates, a margin that makes buying rates different from selling rates, or;
- Charging transfer fees for transfers, covering wire transfers and any other methods the provider offers.
Consolidate your transactions.
Every transaction has associated costs, so making sure you have only as many transactions as you need can help cut down on exchange costs, though this depends on what kind of transactions you go through. Some providers even offer better rates or waive their commission fees if your currency exchange transaction passes a certain amount.
If you’re staying awhile, get ready to bank overseas.
If you’re going to be staying in a foreign country for a while, whether it’s because you’re migrating, studying, working or just vacationing there, you’ll want to set up a local bank account. International fees can be quite steep over time, so opening up a local account can cut down on costs as well as keep your money safe. It’s also a good way to ease the consolidation process, as well as avoid having to deal with currency fluctuations.