Posted by forex at 5:51 AM
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1. Exchange in bulk. Contact a bank, review the Wall Street Journal or visit an online currency exchange website such as OptionsXpress to research the rates for the currency you want to exchange or purchase. Note the currency rate to perform a conversion value before you purchase. If the rate is optimum, exchange in bulk to take advantage of the higher price paid for that currency.
2. Take your time. It is best to review the rate for each currency over a two-week period to determine peak rates and project an expected decline. The national and international markets will determine a value for each currency, so be sure to determine if it is best to purchase in the United States or abroad. Typically, exchange rates will vary by 1 to 2 percentage points.
3. Contact several banks and exchange rate centers. The key here is volume. Call around and see what each location will give for your currency. Be sure to record each exchange rate by date and be sure to ask about fees and additional charges. Some exchange centers charge as much as 1 percent with an additional $5-$10 dollar processing fee. If you go with a center that charges a fee, refer to Step 1 and exchange in bulk.
4. Use a credit card. Credit cards typically offer a more competitive exchange rate for merchandise purchased abroad. Check with your credit card company before making any purchases. Generally, Master Card and Visa add a 1 percent fee for processing a foreign currency. This is half the typical 2 percent fee that many banks charge. Capital One does not add a surcharge. Travelers can make purchases without any additional or processing fee.