Posted by forex at 8:35 AM
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1. Look up the current exchange rate for your currency and the foreign currency. You can find this in the morning paper or on several Internet currency sites such as XE.com or even Yahoo! Finance.
2. Visit the local banks where you are thinking about exchanging money. Outside of the bank there usually is a message board with the current exchange prices.
3. Locate your home currency on the board. Next to it will be two numbers, one slightly higher than the other. Write these numbers down to help remember the exact figures. The first number listed is higher than the second number. This number is the amount of the foreign currency you need to pay to obtain one dollar of your home currency. The second, lower number is the amount of foreign currency you receive back for every dollar you trade in.
4. Compare the bank's numbers. The lower the first number the better when exchanging the foreign currency. With the second number, you want it higher. This means you obtain more money when exchanging your current money for the foreign money. Comparing this information helps you determine what bank has the lowest foreign exchange risk.