People travel abroad for several reasons, whether for leisure, business, or even education. And one of the considerations you need to do when going abroad is foreign exchange. You need to get your home currency exchanged with that of the country you are visiting.
However, getting the best rates for currency exchange without paying high fees can often be difficult for various reasons. Fortunately, we bring you this guide to help you avoid paying high fees when exchanging foreign currency.
How does currency exchange work?
Currency exchange is the process of converting one currency into another currency. This typically happens to facilitate international trade, travel, or send money to friends and family in another country.
Foreign exchange converts one local currency into another when sending money abroad. Using exchange rates based on international trade markets, a consumer can change their current currency into the desired foreign currency through an international money transfer service.
Where to exchange foreign currency?
Here are a few ways to exchange currency.
- Using a bank
Many banks offer currency exchange services, allowing you to exchange one currency for another in person at a bank branch or online.
- Using a currency exchange service provider
Currency exchange service providers are independent companies that specialize in exchanging currency. These can be found in both online and offline outlets.
- Using a forex broker
Forex brokers facilitate the buying and selling of currency on the foreign exchange market. They may charge more commission fees or have other fees associated with their services.
When you exchange currency, you will be quoted an exchange rate, which is the amount of the second currency you will receive in exchange for one unit of the first currency. The exchange rate can fluctuate based on supply and demand for the two currencies.
How to exchange foreign currency with a service provider
Here is a general process for exchanging foreign currency with a service provider.
- Research and compare exchange rates
Look for a service provider that offers competitive exchange rates. You may want to compare rates from multiple providers to ensure you get the best deal.
- Consider fees
Some service providers charge fees for their services, such as commission or transaction fees. Be sure to take these fees into account when comparing exchange rates.
- Choose a service provider
Once you have found a service provider that offers competitive exchange rates and reasonable fees, you can proceed with the currency exchange.
- Provide the necessary information and documents
The service provider will typically require certain information and documents from you to complete the exchange. It includes identification details like proof of residence and identity.
- Complete the exchange
Once the service provider has all the necessary information and documents, they will exchange the currency for you and provide you with the equivalent amount in the currency you requested.
- Keep track of your exchange
Be sure to keep track of your exchange, including the exchange rate, fees, and other relevant information. It will help keep track of your finances and ensure you received the correct amount of currency.
Exchange currency at a low fee through Orient Exchange
If you are looking to get the best exchange rates at low fees, Orient Exchange, an RBI Licensed entity, is here to help. We are a leading forex services provider to businesses, tourists, students, and any other individual who intends to visit a foreign country. Our exchange rates are transparent and do not include any markups, giving you the best value for your money.
Contact us today to know more details about our currency exchange, Forex Cards, and outward Remittance service.