5 Best Ways to Exchange Currency Locally

As an individual or business who regularly exchanges currency, or is planning to, you should know that there is significant risk associated with currency exchange. Currency rates fluctuate nearly every day, which means that you may gain or lose money when you exchange currency. Of course, it’s amazing when you gain money on a currency exchange, but you definitely want to avoid losing money.

Fortunately, there are ways to exchange currency while minimizing your risk and your fees. We’ve listed several currency exchange methods, so you can worry less about losing money on currency exchange regardless of whether you’re a business or individual. From now on, you won’t have to stress about losing money or getting ripped off when travelling or doing international business!

Here are the top 5 best ways to exchange currency:

1. Exchange Currency in Foreign Bank Accounts

If you regularly travel to a particular location or use a certain currency often, consider opening a bank account in that region. Once you open an account in that location, you can transfer money to the account when the exchange rate is favourable and use the funds at your discretion.

This currency exchange tactic ensures that you won’t be forced to pay a hefty exchange rate when you need the money the most. Also, you can transfer money to and from your foreign account from the comfort of your home!

This is the best way to exchange currency for individuals (or businesses) that frequently travel (or do business) in the United States from Canada. If you regularly exchange Canadian dollars to US dollars, reach out to your current bank as they may offer you a special account for this exact purpose.

Keep in mind that this option won’t always be feasible, possible or safe in every country. Be sure to do your research on banks before opening an account by reading reviews and checking out the legitimacy. You definitely don’t want to get scammed transferring money to a fake bank!

2. Exchange Currency in Local Banks or Credit Unions

Where you go to exchange currency will have an impact on the cost of the exchange. Many companies make a profit off of foreign currency exchanges by charging pricey fees on top of the exchange rate cost.

The best place you can go to exchange currency is your local bank or credit union as they typically don’t charge expensive fees and it is an institution you can trust. Of course, this exchange method only works when you want to exchange your home currency cash into foreign currency cash, commonly done before a trip abroad. This method of exchanging currency also requires a bit of planning ahead so that you can have the cash you need for your trip.

It is possible to exchange currency while you’re abroad, but be prepared to pay higher fees. In addition, be sure to research banking institutions to ensure you don’t get scammed. Finally, always stay away from airport ATMs because they have the most costly fees!

3. Exchange Currency at Local ATMs

Despite your efforts to plan ahead by going to your bank or credit union beforehand, you might need some more cash when abroad. The best place to exchange currency in a foreign country is a local ATM because other places will typically have higher rates and fees

Generally speaking, ATMs will charge the spot rate plus a 2.5% surcharge. Unfortunately, the surcharge cannot be avoided, it is known as a foreign transaction fee. Some international ATMs may charge another one time fee of anything up to five United States dollars.

Depending on where you are, you may be able to find an ATM that partners with your home bank. By using ATMs such as these, you can reduce your overall exchange costs.

4. Exchange Currency via Foreign Credit Cards

Banks usually offer a special credit card with travel benefits. One of the significant benefits is foreign currency and transaction fees are waived on the credit card which you would otherwise incur using other methods of payment.

This isn’t really a method of exchanging currency, however, it is definitely helpful for individuals that travel often or make international purchases on the regular. Using these cards makes your international purchases more stable so you don’t have to fret about foreign currency exchange charges. Having a credit card is a helpful tool when traveling but be sure to have an emergency cash fund just in case.

5. Use a Currency Converter

The wonderful world wide web has worked its magic again! Did you know that there are online services available, known as currency converters, whereby the desired exchanged currency can be delivered right to your door? If you didn’t, now you know!

Of course, you will still be required to pay the spot rate and whatever the cost of the currency converter service delivery is, although, this is a handy service for many. If you regularly convert currency, you may be able to enter a contract with one of these businesses to stabilize the expenses you incur.