When to Buy Foreign Currency and Where to Get the Best Deals
It can prove to be a real conundrum: when exactly is the best time to buy foreign currency, and where should you get it from? Whether you’re planning a holiday abroad, making a large purchase, or simply holding some money in a foreign currency as a safety net, knowing when and where to buy can save you a fair bit of cash. Here’s a straightforward guide to help you make the most out of your exchange.
Timing: When Is the Best Time to Buy?
Monitor the Market Trends
Exchange rates fluctuate daily and are influenced by various economic factors such as inflation, interest rates, and geopolitical events. Watching these trends can give you an idea of whether it’s a good time to buy or if you might benefit from waiting. Many financial websites, including XE and OANDA, offer real-time rate tracking and predictions that can help guide your decision.
Plan Ahead
Buying foreign currency last minute at the airport or your local bank can be costly due to poor exchange rates. Planning ahead and purchasing currency when rates are more favourable can make a significant difference. For instance, rates often improve during mid-week and tend to be less favourable over weekends when market activity is lower.
Avoid Peak Seasons
Currency rates can also fluctuate based on demand, and during peak travel seasons such as summer and the Christmas holidays, rates may be less favourable due to increased demand. Buying your currency a few weeks before these high-demand periods can help you secure a better deal.
Consider Using a Currency Tracker
A currency tracker app or setting rate alerts can be a game-changer. Some platforms allow you to set a target rate, so you’ll receive a notification when the exchange rate hits your desired level, helping you buy at a more advantageous time.
Where to Buy: Finding the Best Rates
Specialist Currency Providers Specialist currency providers, like Travel Money Oz and Travelex, often provide better rates than high-street banks or airport kiosks. Some even offer an online ordering option for home delivery or in-store pickup. Comparing different providers’ rates online is a quick and effective way to find the best deals.
Online Banks and Money Apps
Many online banks, such as Revolut and Monzo, allow you to hold money in multiple currencies and exchange at competitive rates. These apps often offer real-time interbank rates, saving you money on fees and poor rates, especially for smaller transactions or day-to-day spending abroad.
Consider a Prepaid Travel Card
Prepaid travel cards allow you to lock in an exchange rate when you load the card. This can be useful in a fluctuating market, giving you the security of knowing exactly how much spending money you have. Popular options include Caxton FX and Post Office travel cards, which can be used globally.
Avoid Airport Exchanges
Airport currency exchange kiosks are convenient but are notorious for their high fees and unfavourable rates. If you must buy currency last minute, consider using an ATM in your destination country rather than exchanging at the airport, as rates are often much better.
Check for Delivery Fees and Hidden Costs
Some online providers charge for home delivery or add on service fees that can erode your savings. Make sure to read the terms carefully and consider picking up the currency in-store if delivery fees make a notable difference.
Tips to Make the Most of Your Currency Exchange
Avoid Paying in Pounds Abroad:
When paying by card abroad, always opt for the local currency to avoid costly conversion rates imposed by retailers.
Keep Small Change:
In some countries, tips and small purchases are often paid in cash. Keeping smaller denominations can help prevent you from having to break larger notes or incur additional fees.
Look Out for Dual-Currency ATMs:
Many ATMs abroad offer dual-currency options, allowing you to withdraw both pounds and local currency. However, always choose to withdraw in the local currency for the best exchange rate.
With a bit of preparation and a close watch on the rates, you can stretch your pounds further, giving you a little extra for those special travel experiences.
Supermarkets:
If you are making a small currency purchase – supermarkets often offer preferential rates for loyalty club members.
Post Office:
Another great source of reasonable value currency exchange is the Post Office.
For the best flight price check our flight page!
