When is the best time to exchange currency for a vacation?
A vacation in another country is always an exciting thought. Planning a trip to any or several Latin American countries takes patience and research. Finding the right hotel, special attractions and good restaurants can be an issue, especially if you’re traveling to smaller cities like Merida in Mexico to check out the Mayan Temples. The vacation budget is the travel gospel for most people unless they just won the lottery and the currency exchange market gives it credibility, if you exchange money wisely. Waiting until the last minute to exchange U.S. Dollars for Reals for a trip to Brazil can be a budget nightmare. The global market is constantly changing and if the Dollar just moves 1000 points over the course of a few days, it will cost you $100 for every $1000 you exchange. Getting that news when you arrive at airport in Rio is a not only a budget breaker, it’s a wake up call.
Seasoned travelers exchange small amounts of money while they’re planning the trip. By exchanging small amounts of money at different times before the trip you can average your exchanges to protect yourself from sudden currency shifts. You also know what each exchange costs, so you can build a budget on facts not fiction. Averaging also protects you from sudden surges that can happen to currencies like the Brazilian Real. The Real can increase in value overnight and destroy a vacation in a matter of hours, unless you have been averaging your exchanges with a reliable currency trader.
Where should I ?
Most of us believe that a bank will give us the best rate of exchange, but banks add a fee to every exchange and they may only post one or two rates a day. The currency market changes every hour, so you may not get a real time rate. Credit card companies adore you if you use their services when traveling. They use their own rate which includes a built-in profit and they add a surcharge on every holiday purchase, so you don’t know what the trip costs until you get the statement. Airport currency traders may add a hidden fee to the rate which means you have fewer dollars to spend on the trip. A reliable currency trader can help you average your exchanges while you’re planning the trip. A profession will give you a real time rate so you avoid excess fees, surcharges and bogus rates that destroy your budget.
Other travel thoughts
Always carry cash in a money belt or a hidden pocket that’s secure and out of sight. Wallets and purses are easy targets, so just carry a little cash in them for travel incidentals Hotel safes and other security measures should be used when you arrive and common sense is your best security tool if you use it. Some countries limit the amount of cash you can carry through customs. If a random custom search finds you exceed that limit, your money could be confiscated.ForexTraders.com wrote this article to help save you money before a fun vacation to another country. To learn more about currencies and the several factors to consider when trading forex, such as; a country’s economy, undercapitalization, brokers, technical and fundamental analysis etc, visit ForexTraders.com.
Flickr photo by LFL16