Top tips to change currencies at the best foreign exchange rate
Have you found your dream home in sunny Spain, and plan to leave the rain in Britain behind? Do you import and export for your business, and make regular foreign payments? If so, then you probably know that getting a good foreign currency exchange rate is imperative. Imagine for instance that you’re about to change £200,000 into euros. Go to your bank, and you could receive a rate that leaves you thousands of pounds out of pocket compared to a foreign exchange broker. That is of course a punch on the nose no one needs. But how then do you sidestep the foreign exchange pitfalls? How do you come out on top, and receive a rate that will help you start your life abroad best foot forward? To give you a headstart, we’ve put together some helpful advice. Read it through, and changing currencies the next time should be a breeze.
1. Plan ahead
One simple tip to get a top foreign exchange rate is to plan ahead. If you think about it, this is something you would ordinarily do for most big purchases anyway. For instance, picture a family planning a foreign holiday. They decide that this year a two week break in New Zealand sounds fantastic. But instead of booking the hotel and flights month in advance, they decide to turn up at the airport on the day. Of course, they’re fleeced for every penny they have. You wouldn’t do this, and it should be identical with your foreign exchange. If you know you need to change currencies, call your foreign exchange broker as far in advance as possible. This will enable you to talk through your circumstances, and arrange a transaction appropriate to you. The alternative is waiting until the last minute, and being forced to accept whatever rate is available.
2. Beware the high street banks
Our second tip is to beware the high street banks. This is because, as I mentioned, banks provide substantially inferior exchange rates that can leave you thousands of pounds out of pocket. It’s a little like planning to purchase a new television, and finding two shops to choose between. Each provides exactly the same model with the same guarantees. One though is £50 more expensive. It just doesn’t make sense to choose it! In fact, in most cases foreign exchange brokers will guarantee to beat your high street bank. So you can rest assured of a saving.