When it comes to traveling to foreign countries, there always seems to be a cost on the privilege to exchange currencies. From currency exchange commissions, ATM fees to credit card surcharges and so many others.

Most travelers usually take the time to hunt down the best air travel and accommodation prices, it’s only reasonable for them to do everything they can to get the most out of their money by also looking for the best foreign exchange deals.

Here’s a list of tips you can use to get the most value out of your home country’s currency when it comes to exchanging it for that of a foreign country.

Exchange Rates

The first step to finding the best foreign exchange deals is to find out what a good deal looks like. Before you head out in search of the best place to exchange your money, use one of the available resources to ascertain the existing exchange rates. To learn the rates, you can use websites, currency convertors or check the values at banks and currency exchange establishments.

It is worth pointing out the fact that the rates quoted by currency convertors and websites are bound to be lower than those displayed at banking halls and foreign exchange booths. This is because the latter options usually have the applicable fees and commissions included in their valuation.

Remember to check the exchange rates every now and then, if you intend to stay abroad for an extended period of time.

Where To Exchange Currencies

Although currency exchange rates may seem to be more or less the same to most travelers, they are nothing but. Before choosing a foreign exchange operator, be sure to find out whether they offer the best deal.

As a general rule of thumb, travelers should avoid exchanging their money at foreign exchange operators located in airports, seaports, hotels and popular tourist centers. These operators are known to offer poor rates as they take advantage of their strategic location. On the other hand, local banks are a better alternative to these options.

It is however worth noting that as with every general rule, there are some exceptions.

Fees And Commissions

Generally, foreign exchange fees and commissions are considered to add to the cost of exchanging one currency for another. To many, this is taken to mean that foreign exchange operators offering “commission free” services tend to have the best deals. However, the opposite could actually be true. You might find that operators who purport not to charge a commission may offer poor deals as compared to those who charge a commission.

This is exactly why you need to do the calculation yourself before transacting with any foreign exchange operator. This way you can be able to compare their rates with other operators to find out whether theirs is truly the best deal.

Using A Credit Card

You may use your credit card abroad for transactions quoted in the local currency. To avoid having your card frozen by the provider, due to suspicious activity, be sure to inform them that you intend to use it abroad; specify the destinations you intend to use it in.

Before you settle on the card you will be using, take the time to compare the foreign exchange terms offered each of the ones you have. When using a credit card abroad, you will be changed an international transaction fee in addition to any applicable foreign exchange fees. Some cards will have better terms than others.

Using Your Home Country’s Currency

Traders in some foreign destinations actually accept some of the world’s major currencies. This eliminates the need for travelers to exchange their money. However, as convenient as it might seem, it may not be the best deal for those looking to get the most out of every cent they have.

At the least, these traders usually include exorbitant exchange rate fees and commissions in the quoted prices. This means that you are better off exchanging your money for the local currency.

With the above tips in mind, you will be in a better position to get the best currency exchange rates during your travel abroad. It is also worth mentioning that preparing in advance will help you avoid getting into situations where you are forced to accept a poor exchange rate due to lack of options.