How to Save on International Currency Exchange

December 4th, 2013 by The JetSetter Team | 2 Comments »

Slide1For individuals living the expatriate lifestyle, there are many questions. While it takes a bit of adjusting to feel at home in a new country, it can be a relatively easy (and worthwhile) transition. There is a learning curve though, and it usually revolves around all things financial. In his travel overseas, Jason Hartman has discovered that money often complicates things—for those living abroad, this can be even more complex.

One of the ways expats often lose money is in money transfers that offer bad exchange rates and high fees for transactions. With a bit of know-how and a little planning, these can be avoided, or at the very least, minimized. First, pay attention to the rate of exchange and not the transaction fee that is taken. This is where suppliers of currency make their money, and its often overlooked in favor of the more visible transaction fee. Paying attention to this will ensure you get a better-quoted rate.

Next, consider alternatives to your regular bank when dealing with currency exchange. Currency organizations offer specialist brokers who understand your particular needs and can offer better foreign exchanges. They’ll check out the markets and make sure you trade at the right time. While they don’t replace banks, they may help you make the most of your money.

You might also a forward contract, in which you order foreign exchange at an agreed rate exchange, up to twelve months in advance. This follows the buy now, pay later approach and requires a small initial deposit and full payment upon completion of the transaction.

If time is on your side, consider something called a “limit order,” in which you’re in no rush to transfer funds. Your account manager will be given a budget rate that is realistic, and when the currency pairing hits this rate, they’ll buy the currency for you. It’s a great option if you don’t want to worry about such things yourself and have no timeframe for your currency exchange.

Finding a currency organization that is right for you may provide a challenge, but will make a world of difference. Register (it should be free) with a few and see who provides the best service. Read reviews online, and get a feel for how each conducts business. Know your money, save enough so that you can be picky, and make money and investment decisions that will set you up for success.(http://www.flickr.com/photos/wilhei/109403903/)


* Read more from Jetsetter

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