Finance2007   Finance for personal business

These days there is a wealth of options for spending money abroad, offering different levels of convenience and security. However, there are some reasons why you exchanging some cash ahead of your travels will save you money and stress. After all, it’s always a good idea to have at least a little cash on you when you arrive for those initial taxi journeys/celebratory drinks! Here are the top 5 ways to avoid charges and high rates of exchange.

1. If you just rock up at the airport and buy currency from the bureau, or use your card as you go while abroad, you won’t necessarily get the best rate. Planning ahead by keeping an eye on the rate and talking to a specialist broker to change your money could save you some valuable pennies and avoid unnecessarily high rates of exchange.
2. Traveller’s cheques, while highly secure, will cost you more in rates of exchange. If security is less of a priority for you, you’d be better served buying currency as cash in advance.
3. If you exchange your money in advance and use cash on holiday rather than cards you won’t get stung by “dynamic currency conversion”. This is a system offered by some shops and merchants as a way for you to pay in Sterling, giving you an easy conversion. However you’ll most likely be hit by a terrible exchange rate, and some retailers won’t even ask before charging your card this way, so cash will avoid this.
4. Alternatives like prepaid cards will bring the same problems as traveller’s cheques. Prepaid cards can be convenient (although some create hassles such as needing to top up in person) and offer security, but as they are not yet widespread you can be hit by all sorts of unexpected charges for using them.
5. If you plan ahead and get good rates of exchange, going to a specialist broker to buy currency will be your cheapest option. It is also the option that affords you the most control and flexibility while abroad, as you’re able to know exactly how much you’re spending. Just make sure the amount you take is covered by your travel insurance for added peace of mind.