International business trips are becoming very common, more and more families are going to foreign lands for vacations and most of us have friends & relatives living abroad. All this has increased the number of international money transfers & currency exchanges. More and more people find the need to convert or send currency abroad and since they’re new to the whole forex scenario, they often make some common forex mistakes. This article will highlight some of these mistakes and help you enjoy a smooth & economical forex transaction.
The first Foreign Exchange mistake is not planning ahead.
When people need to send money abroad or buy foreign currency in cash, they often leave it for too late. This means that when they actually get down to getting their needs sorted, they are short on time which results in hasty decisions; and haste is waste! Some people go for the first vendor they come across and finalize without comparing.
Foreign Exchange mistake number 2 – not going online:
Even in this modern-day and age, some people still opt for a real-world forex vendor. But the internet has stepped in a brought the world of forex online. Now one can send money abroad, buy foreign currency cash & order multiple currency cards from the comfort of their homes, at the best currency exchange rates & at the lowest commission charges.
Mistake number 3 is changing money at airport counters:
This is one of the biggest mistakes you can ever make. These counters levy unreasonably high charges and fees that eat into the value of your money ensure you get less foreign currency. You should delete this option permanently and only rely on such a counter in times of a dire emergency.
Mistake 4 is not opting for a foreign currency card.
Some people rely only on cash and their international debit & credit card when they visit a foreign currency. Doing this is risky business and could also cost you loads of money. It’s risky because if you lose the bag carrying your money or misplace your wallet then all or a good amount of your tour money is gone. If you are thinking of using your international debit or credit card, remember that every time you use it, you will be charges conversion charges and transaction fees. Instead, you should opt for a multi-currency card; if you lose it you can block it and use the spare one. Further there are no or very minimal charges associated with the usage of such a card.
Number 5: Making too many small foreign exchange transactions.
This is the most common mistake and is applicable on both money exchanges & transfers. Small transactions invite higher commission charges. Further, small transactions translate into more frequent transactions. So you inevitably pay higher charges more often with small transactions. Instead, try making fewer larger transactions. This will help you save a good amount of money.
We hope Headline Insider article has been helpful and we hope you have a smooth Foreign Exchange transaction!