How to Get the Best Foreign Exchange Rates When Traveling Overseas

Research Market Rates Ahead-of-Time

There are many steps to getting the best foreign exchange rates when traveling overseas. It begins by doing your research. Check out online and printed material for foreign exchange, local economic conditions, and travel tips. If a local area is struggling economically, it may offer you better foreign exchange rates. Compare the local currency price over a year to see dramatically the currency exchange rate changes.

Exchange rate research will provide you with a solid reference point. People will be less likely to scam you when they realize that you are knowledgeable about foreign exchange rates. As you travel, continue to check the currency exchange rates in the newspapers or on the Internet.

Airports, ferries and trains

Airports, train stations, and ferries offer convenience, but usually have slightly higher foreign exchange rates. Another option is to check out the airport rates on the Internet; you can order the local currency online for a better rate and pick it up at the airport – combining convenience and price. Train stations and ferries will tend to have more limited hours of operations.


Exchanging your home currency for local currency before you travel is one viable option. In the country you visit, there will also be foreign exchange banks that serve individuals and businesses that need foreign exchange services.

Other Foreign Exchange Options

Some high-traffic tourist areas may have expensive foreign exchange rate services at smaller shops and larger stores.

Sometimes, hotels offer decent foreign exchange rates as a service to their customers. You could receive a money transfer while you are overseas; it is cheap, safe, and fast. The best foreign exchange rates can be found at banks and post offices. Gift cards or travelers checks are also options.

Some local exchange services charge up to 25% for currency exchange. Shop around, compare two to three rates before completing your foreign currency exchange transaction.

Foreign Exchange Brokerage

Foreign exchange brokerage firms buy contracts in large volumes at attractive rates. These highly-trained professionals are experts at trading international institutes. They usually offer better rates than banks, but also have higher fees.

Different Foreign Exchange Rates

You may run into a number of different rates: "official," "local," "market," "buy," and "sell." Be careful, some shops will quote one rate to attract your attention, then they will tell you that you only qualify for the higher rate.

When there is a "local" foreign exchange rate that is different from the government's "official" rate, you can usually get a better deal. Some good rates only apply when large amounts are replaced.

Credit Cards

Going through a bank for the foreign exchange rate can offer the best rates and lowest fees. When consumers use a debit or credit card, their banks will give them the same foreign exchange rate that banks charge each other. Some banks and credit card companies will charge fees of up to 3% on all purchases made with the currency.

Before you travel, do your research into your financial institution's most current policies, rates, and fees for exchanging foreign currency.

Some travelers purchase a debit card, special credit card or cash passport for voyages overseas with low or no fees on foreign exchange. These are safer than cash. Be careful, because these cards have special rules.

You can avoid some ATM fees by using your credit or debit card for large purchases – housing, travel and food.

Additional Fees

Many additional fees could be charged when you use a credit card overseas:

1. Foreign exchange "load" fee (currency conversion fee) 2. Cash withdrawal fee 3. Interest charge on balance 4. Handling fee.

There might be other commissions, surcharges, and fees that may apply. Flat rates and minimum amount restrictions may also apply. Calculate the net foreign exchange rate after all transactions are added. Be careful of "commission-free" offers because they will usually provide a less competitive exchange rate.

Beware of "dynamic currency conversion," promises; venders will offer to charge your fees denominated in your home currency, the AUD, while you are in the in the foreign country. This might sound good, but the fees are usually excessively high. When in a new locale, you should get used to pricing everything in the local currency.


Automated Teller Machine (ATM) networks have grown worldwide. If you have an account with a major bank that is part of an extensive network, then you might be able to withdraw the local currency from the ATM wherever you go. This will allow the bank at home to perform the conversion.

The money you withdrawal will be in the local currency. It is wise to withdraw larger lump sums because there might be 1 to 3% ATM fee charged. There may also be a "daily withdrawal limit."

You could check out ATM, credit card, or airline websites to see if their facilities are available where you go. There are frequently affiliations, combinations and links to large networks of financial services between these groups – for example, the American Express Qantas credit card.

Discuss all relevant rates and policies with your bank before you travel.

Exchange Rate Calculator

The Exchange Rate Calculator will help you calculate the "most competitive market rates" by finding the mid-point between buy and sell rates for large transactions. Exchange rates can change quickly.

Having a small calculator can help you figure the exchange rate; it will also make you look more serious to others. You can also go onto the World Wide Web to find an Exchange Rate Calculator.

Tips for Getting the Best Foreign Exchange Rates When Traveling

Getting a small amount of the local currency before you travel makes sense since the local airport, bank, or exchange service may be closed when you arrive. You may need an emergency cash source for purchasing something en route: a snack, umbrella, or taxi ride.

Plan your budget ahead-of-time. Large cities will offer more options for foreign currency exchange. You will probably need to carry some local currency to smaller towns due to fewer foreign exchange options. Avoid exorbitant fees by planning ahead.

Local taxi drivers and hotel employees may know the best places for foreign exchange. If you must exchange one currency for another overseas, make sure you have a well-known currency that will be accepted in the locality you are visiting. Sometimes, wise locations may prefer to actually hold your well-recognized, "more convertible," AUD rather than less-popular local currencies; they might give you a better rate.

Some treaties are not very valuable compared to your higher denominations of AUD. You might be required to bring a small bag to carry the local currency after exchange. Most countries still permit haggling, so show confidence and be patient.

Trust Your Instincts

Beware of black market moneychangers who might be involved in a number of scams, including counterfeiting, theft and shorting you money. They probably will not expect you to count out large amounts of bills. Also, some local banks are crooked; they might think that you will travel before you realize that they have not exchanged the correct amount of money.

If you feel something is not right, you are probably correct – trust your instincts.


The Foreign Exchange (Forex) Market and the Two Main Provisions of Trade – Part 1

The Foreign Exchange market is the largest financial market in the world and spans the globe. Known also as the Forex market or FX market, the market is 24 hour in operation and is not limited to single exchange locations with in countries but is connected where ever one currency is exchanged for another in the process of doing business.

Traditionally, the trade was primarily conducted at banks and special exchange bureaus, but today it can be literally anywhere via ATMs, hotel and from your own PC or laptop. Traders can be huge multi-national corporations, small exporters, banks, governments etc., or you. When you buy an item over the internet in another currency using your credit card or if you are on holidays and want some quick local currency cash from an ATM, you are setting up and will engage in a forex deal. You will sell / buy, a currency at a rate set by the banking institutions involved and as determined by the market. Most small and intermediate transactions are done directly using a retail bank. When you take your cash, your bank calculates an exchange rate value in your home currency for the amount you have withdrawn and deducts that from your account. Your bank will probably charge you a currency conversion transaction fee and the exchange rate that it sets that day for the currency you want. The bank sets a buy rate and a sell rate, two prices which are slightly different and which enable the bank to profit from your small deal by selling you the currency you want at a slightly higher rate of exchange compared with the better rate they will receive when they offset your deal via bulk trades in the market that their dealing room will do. So they make a profit on this price difference between the buy and sell price they set for the retail customer versus the better buy and sell price they can get as a heavy weight in the market.

The difference between the buy price and the sell price with a currency pair is called 'the spread'. When people shop for rates they are looking for a smaller, tighter spread difference which means a better rate of exchange and if you shop around you will find quite a bit of small variation in the spread, sometimes between retail banks. Third party exchange bureaus and hotels have to offset your trade with a bank and the bank does so in turn using the larger bulk market, so the non-bank bureau's spread has to be greater. For example, this gives them the chance to off-load the physical currency you have sold them in exchange for the local, at a small profit to a banking institution. Forex exchange booths at airports usually have the larger spreads in the retail market which means a poor exchange deal for you, less dollars in the currency you are exchanging for, and so the higher cost of an on the spot last minute convenience when you are rushing for a flight.

Huge amounts of trade from so many sources and countries makes for a volatile and active market that is good for the speculator and should, as a measure reflect the changing economic performance of one country's economy in relation to another country's economy. The business person or consumer who is just looking for the best rate and most secure way to pay in a currency exchange situation can make use of certain tools available to select a rate in the market that they feel serves them best and then to secure that rate over a given time period against further fluctuation. This then means that a business can execute the transaction in the future without finding that they have been adversely affected by a value change before the transaction has been finalized. An example would be a small business looking for a stable, set forward, exchange value when ordering a machine that will be delivered in six months time. It would be great if the currency they pay in the machine goes down in value, meaning the machine costs less, but what if the currency were to go up? Business relationships on budgets and foreseeable consequences and so it is usually unacceptable to leave a deal exposed to the currency market.

We can see that both types of trade use the market to their advantage in different ways for different purposes. Speculation traders seek to make profit yielding trades in the market from speculation on value change. They can do this using a broker, self operated manual or semi automated forex trading, or a forex robot trading system. Although near forex trading for profit was once the domain of brokerage homes, the Internet has revolutionized forex trading making easy forex platforms and automated trading methods available to almost anyone.

Businesses and corporations engaging in inter-country business seek to secure a locked in and stable rate to reserve profit margins and budget forecasts. Businesses also now use the internet to quickly and easily arrange and manage forex trades.

In part 2 we will continue to look with more detail at the two primary but different reasons for trading forex.

Thanks for reading and see you again for the next article.

Eric Bray


The Foreign Exchange "Forex" Market and the Two Main Provisions of Trade – Part 2

In part 1 we looked at the global nature of the forex market and that many of us may engage in forex deals without really being conscious of it. We took a look at what makes the price spread on rates and how this can vary depending on who we are doing our deal with. We looked at the speculative trader who is seeking to make profits on market value changes and so loves volatile markets that give opportunity. We also looked at the other type of trader being primarily business and corporate entities. These traders seek risk reduced business transactions across countries and different currencies. In part 2 we take a closer look at the two types of deal and trader.

The depth of the forex market is truly astonishing with a staggering average daily turnover of 1 Trillion US Dollars, making it by far the largest financial market in the world.

The market opens in Sydney and then follows the start of the new business day to other center openings such as Tokyo, London, New York.

The huge diversity of traders and players in the market, both in terms of background and deal size, makes for a truly exciting market. This can be a real conundrum for governments seeking to control their country's currency exchange level in the market through central bank intervention – not always successfully. This liquidity and volatility is perfect for forex traders who want to make profitable forex trades on exchange differences and also ideal for the many automated trading systems now being used by lay traders and professionals. Before the development of internet trading access for the general population in the 1990's, bank dealing rooms and large brokerage firms developed computerized trading models to reliably control speculative risk in trading and reduce the reliance on human brokers. The recent rush to access the forex market, using similar tools by lay traders, has seen the development of forex robot trading systems that are modifications or facsimiles of the systems used by the larger institutions. Many of these automated trading systems that are offered on the internet are light weight, poor quality and do not reliably deliver the profitable trades that are promised, but some of the systems do – if set up and used correctly.

Most forex robot trading models use mathematical algorithms and precise programming to make trades in a controlled manner. Some forex robots are designed to perform many trades delivering small gains over very short trade time windows such as one minute. They can be set to stay on 24 hours and trade the full time of the world market with no need of a human broker. Other automated forex systems are designed to use much longer trade time windows such as 4 hour. The point here is that the trading robots and automated systems vary in the designed method of the trading system but all are intended to isolate human emotion, greed and error by automatically delivering the bulk of the trades made as profits against a smaller number of loss trades , thus incrementally growing a profitable account. The added advantage of these automated trading systems is that they take away the need for thorough knowledge of the market and forecast systems that broker and dealers once had to know and rely on. Obviously, knowledge and understanding is a huge benefit when trading the market for profit, even using a forex robot to do it for you. With little or no knowledge, the consumer is still left with the decision of choosing a forex trading robot that works and setting it up correctly. Some forex robots do have problems in that trading system design is not flexible and sophisticated enough to cope with unusual market conditions and hence can fail when the market changes. Other forex robot systems are more robust and sophisticated in their programming design and they are able to detect market conditions where trades, using their particular method and model, must be avoided.

At its simplest, for business, foreign exchange is essentially about exchanging one form of currency for another. Complexity occurs due to three factors. Firstly what is the foreign exchange exposure (how much and what currencies?), Secondly what will be the rate of exchange, and thirdly when the actual exchange occurs. It is through trying to control these factors that a trader or customer seeks the best advantage in making a deal.

Foreign exchange exposures come in about many diverse situations. A traveler has the risk that if that country's currency appreciates against their own, their trip will be more expensive.

An exporter, who sells a product in foreign currency, has the risk that if the value of that foreign currency falls then the earning and profit in the exporter's home currency will be lower.

An importer who buys goods priced in foreign currency has the risk that the foreign currency will appreciate causing the local currency cost to be greater than expected and so reducing profit.

Fund Managers and companies who own foreign assets are exposed to falls in the contracts where they own the assets and so are exposed. The exposure affect would occur if they were to sell the foreign assets in a falling market so that their exchange rate would have a negative effect on the home currency value that they would realize.

Other foreign exchange exposures are less obvious and relate to the exporting and importing activities in your home country where the negotiated price is being effected by exchange rate movements. The consumer would see this in retail where prices may gradually change, rising or falling, according to exchange rate variation and the retailers effort to maintain the margin, or offer a discount with no impact on his margin factor.

The aim of foreign exchange risk management is to stabilize a business cash flow against exchange exposure and reduce uncertainty from financial forecasts. There are also a range of hedging instruments that achieve exactly that, and two forms of the market that enable these instruments to work for the business person. One form of the market gives an immediate or 2 day deal maturity exchange price (spot price market) the other form is the forward or future market that enables an exchange deal to be locked in, months in advance of the exchange taking place, but takes into account a forward adjustment rate on the spot rate at the time the transaction is arranged. The forward adjustments rate allows for interest rate changes on a forward 'future' contract where a future settlement date is agreed for the deal. It is a bit like taking out a loan at a fixed rate.

These are all issues of concern for standard business between currency types where seeking a reliable, predictable or stable exchange rate is the major concern for business. This is needed so that profits from business activities, unrelated to exchange rate issues and disconnected from them, can be relied on in the home currency.

We can now understand that the speculator trader is not as concerned about stability but relations on market volatility and movement between currency pairs to create a profit making market environment and so opportunity arises through a rising or falling value in one currency against another. The business and corporation looks for the opposite to stabilize budgets and deals.

Banks, traders and even Governments, trading to profit from value changes between currency pairs, can effect the market and speculators may abhor flat stable markets; but the market is really a barometer measuring the value of one currency relative to another as determined by a many complex economic and political factors in each country.

So it is that the trader must still, through prediction, try to ride changes in currency values ​​to make profitable trades. The trader does so using brokerage, online trading or online automated trading and employing forex robot tools, technical or fundamental forecasting methods. The business person, looking for stability and reduced risk in his currency trading, tries to reduce his exposure to value changes via hedging and forward contracts.

Thanks for reading and see you again for the next article.

Eric Bray


How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life

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  • Reveals the secrets of the Forex market and how to create a lifetime of income trading it
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Basics of Foreign Exchange

Foreign exchange market is the largest financial market in the world that trades with currencies of different countries. The amount of foreign currencies that is traded crosses $ 2 trillion each day. As this is an international Foreign Exchange market, the commodity that is bought and sold in the foreign currency. The foreign exchange market was launched before three decades and as on date this is the largest liquid financial market that deals more than 100 hundred times of stocks deal in the New York stock exchange.

The best market to invest that has no competition and external control is the foreign currency exchange market. The market exists purely based on speculation. There is no central exchange to conduct trading and trading occurs between two big banks and this inter-bank market is called the over counter market. The trade is carried out using telephone or internet in this decade. The major currency exchange trading centers are Sydney, London, Tokyo, New York and Frank Furt. The foreign exchange market is a 24 hours market running on all working days.

The major advantage of currency exchange market is the high level of liquidity. This comes from the big financial institutions and Governments taking part in the trading. The banks that are involved offer cash flow to the investors, retailers and to many multinational companies.

There is no commission for trading your treaties. You need not pay any part of your profit to your foreign exchange broker who helps you in currency exchange. You can keep 1005 of the profit you gain form the changing currency conversion rates. This has made currency exchange, an attractive business opportunity for those who want to make hot cash.

The foreign currency exchange market is always stable. There is always a profit potential irrespective of the rise or fall of any currency. If a currency of a particular country falls, then some other currency will raise in value. So you can operate without worrying about the ups and downs. The market will never go down as the commodities are foreign currencies.

As the industry is always wake you can start and end your trade at any time irrespective of your time zone. With the changing currency conversion rates, the currency exchange market gives you the opportunity to make larger profits with a lower money investment. The transactions that involve huge money can also be completed in few seconds and the liquidity in the market is high.

Your profit depends on the currency conversion rates. You have to buy a currency say Euro, by paying another currency say USD. You have to buy Euro when you expect the value of Euro to rise in the near future. Now you have to follow the exchange rates. When you find an optimum value for Euro to make profit, you can now sell your euros for making a profit. The change and the fluctuation in the currency exchange market is frequent and rapid and you have to closely watch the currency conversion rates and trade at the appropriate time to make profit.


Currency Trading For Dummies

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Your plain-English guide to currency trading

Currency Trading For Dummies is a hands-on, user-friendly guide that explains how the foreign exchange (ForEx) market works and how you can become a part of it. Currency trading has many benefits, but it also has fast-changing financial-trading avenues. ForEx markets are always moving. So how do you keep up? With this new edition of Currency Trading For Dummies, you’ll get the expert guidance you’ve come to know and expect from the trusted For Dummies brand—now updated with the latest information on the topic.

Inside, you’ll find an easy-to-follow introduction to the global/ForEx market that explains its size, scope, and players; a look at the major economic drivers that influence currency values; and the lowdown on how to interpret data and events like a pro. Plus, you’ll discover different types of trading styles and make a concrete strategy and game plan before you act on anything.

  • Covers currency trading conventions and tools
  • Provides an insider’s look at key characteristics of successful currency traders
  • Explains why it’s important to be organized and prepared
  • Offers guidance on trading pitfalls to avoid and risk management rules to live by

Whether you’re just getting started out in the foreign exchange market or an experienced trader looking to diversify your portfolio, Currency Trading For Dummies sets you up for trading success.

For Dummies

Forex Trading is Meant to Be Known As Foreign Exchange Trading

Forex Trading is meant to be known as Foreign Exchange Trading or trading by exchanging currency. The understanding of forex trading is complementary with the understanding of foreign currency. Foreign currency is simply a currency of any country; say the Indian rupee, the US dollar or the UK pound. Initially, we were known to the barter system for buying and selling of goods.

With the change in times there occurred a change in the buying-selling process; as it saw a tremendous change in the form of currency exchange. When buying inside the territory of a country, the process is reliably easy but when exports and imports come into scene, traders have to have a system that is easily acceptable and can be related to. The system of currency exchange comes to the rescue here. To explain in simple terms, the money or currency of one country is changed into the currency of another. An example here might help the understanding of foreign exchange. A trader from Japan exporting material from USA will have to exchange the Japanese yen with the US dollar.

When foreign exchange trading is to be understood in bolder terms in lieu of big time profits, we look into the foreign trade on the larger scale, ie between worldwide traders rather than foreign exchange due due to tourists traveling worldwide or other reasons. Tourists though provide with a lot of foreign currency but the economic condition improvises with that of big trades happening at the global level. The main flow of foreign currency into a country can be accredited to forex trading or forex market, as it is often known. It is due to this that forex has gained popularity and is the most acceptable medium for exchange of currency.

The major thing under consideration is the national income of a country which improves a lot with the help of increased foreign trade, which brings in foreign currency to a nation. Thus, forex trading is derived from initials of Foreign Exchange Trading which simply means trading under foreign exchange. Foreign exchange trading is picking up immensely due to increased businesses globally. Many investors choose to convert currency in forex for maximum profits. The forex trading or forex market is characterized with extreme liquidity and the most traded currencies on forex are the US Dollar, the Japanese Yen and the Euro.

The forex being a highly liquid medium asserts the trader in buying and selling currency easily and quickly without being taken in other investments. Thus, this form of trading is always profit yielding.


Currency Trading For Dummies

Price: 00.00
(as of Apr 13,2019 00:49:15 UTC – Details)


Your plain-English guide to currency trading

Currency Trading For Dummies is a hands-on, user-friendly guide that explains how the foreign exchange (ForEx) market works and how you can become a part of it. Currency trading has many benefits, but it also has fast-changing financial-trading avenues. ForEx markets are always moving. So how do you keep up? With this new edition of Currency Trading For Dummies, you’ll get the expert guidance you’ve come to know and expect from the trusted For Dummies brand—now updated with the latest information on the topic.

Inside, you’ll find an easy-to-follow introduction to the global/ForEx market that explains its size, scope, and players; a look at the major economic drivers that influence currency values; and the lowdown on how to interpret data and events like a pro. Plus, you’ll discover different types of trading styles and make a concrete strategy and game plan before you act on anything.

  • Covers currency trading conventions and tools
  • Provides an insider’s look at key characteristics of successful currency traders
  • Explains why it’s important to be organized and prepared
  • Offers guidance on trading pitfalls to avoid and risk management rules to live by

Whether you’re just getting started out in the foreign exchange market or an experienced trader looking to diversify your portfolio, Currency Trading For Dummies sets you up for trading success.

Currency Conversion – What Does This Mean To You?

It is well known that all nations around the world or groups of nations have their own treaties which can be converted from one to another.

When our ancestors first be trading with each other they would swap with one another what ever the good or product they had produced in exchange for what the other needed, this quickly moved to a bartering system where they would agree relative values ​​of the goods that they were exchanging. As this barter system became more complicated ancient civilizations introduced various forms of currency that could be used instead of bartering. In time the currency that became used would be based on precious metals such as gold or silver. As international trade developed traders would exchange holdings of particular precious metals in payment for goods being sold. However, as physically handing over large quantities of gold would have been increasingly alarming due to the potential for theft and piracy, another system was introduced. Knowing that a precise weight of gold represented a prerequisite quantity of their currency enabled trade between different nations to take place without the actual need to hand over bullion with every transaction and in time promissory notes were introduced which were backed by gold reserves. With the increasing sophistication and precedence of international trade nations would agree to account to each other for the movements in their relative holdings of gold. Until the early to mid twenty century many nations adhered to a gold standard whereby they actually owned the amount of gold that equated to the amount of currency in issue.

The promissory notes that were issued and replaced became used by traders for additional transactions and knowing that they would be extremely honored became acceptable as an international currency. The individual traders of different nations would be able to know how much a promissory note from one country was worth in their local currency. This created the opportunity for currency conversion and markets were established where it was possible to buy one currency with another. The sophistication of these exchange rates would have been capable of varying dependent how reliable one nation was compared to others to meet their settlement obligations. This led to the beginnings of the international foreign exchange markets that developed around the world.

The growth in the global economy particularly during the twentieth century together with the increasing complex banking transactions led to the abandonment of the gold standard concept as there would be insufficient gold reserves to match the amount of currency that needed to be issued to support the volumes of trade. In the present day the foreign exchange markets facilitating currency conversion are open 24 hours a day and the relative rates of exchange between each currency may vary minute by minute as the attitudes towards the different world currencies change depending upon a myriad of economic and political factors. There is always a differential in the amount that a currency will be converted at depending whether you are a buyer or seller, which enables the foreign exchange traders to make their profit on the transactions.

Currency Change is definitely the perfect choice if you want to get the best value for your money and if you want an assurance that the transaction would be safe and efficient. For more information, visit