4 ways to protect yourself from forex traps
Are you the thrifty traveller who plans every inch of your vacation, right from advance-booking your air tickets, accommodation and car rentals, to even meticulously organising your travel itinerary? All done to save your hard earned travel money!
But did you know that currency exchange is one area where a major chunk of your cash could be lost? With the increasing bank fees, unscrupulous forex agents and volatile markets, exchange rates are in a constant flux.
So, here are our tips to escape the currency exchange traps.
Avoid dynamic currency conversion
The dynamic currency conversion is one of the easiest ruses that will rip off your travel money. When you purchase a souvenir while travelling, the POS staff will ask if you want to pay in your home or local currency. Sounds like perfect customer service, isnÔÇÖt it?
If you opt for home currency, the merchant takes the liberty to convert the amount to be paid to your home currency with high exchange rates and hidden charges. This is dynamic currency conversion, which ensures you end up losing a lot of money while purchasing.
Hence itÔÇÖs always advisable to pay in the local currency of your destination.
Use travellers cheques
Sounds like a relic from the bygone era? Well itÔÇÖs not!
TravellerÔÇÖs cheques are safe, pre-printed, fixed-amount cheques, intended to allow payments across currencies. They are secure and easy to use in almost all leading destinations around the world. If lost or stolen, they can be cancelled and replaced.
You need not keep worrying about looking for currency exchange houses or forex deals.
Get a travel card
You can also opt for prepaid travel cards, that are an evolution of travellersÔÇÖ cheques. With the exchange rate lock facility available, you can make informed decisions about the right time to lock ideal rates for future use. Managing and using money becomes hassle-free with travel cards.
There are several prepaid travel cards such as Gocash that offers multi-currency usage, ATM withdrawal, POS and online payment, and 6 out of 16 world currencies reload facility.
Do your research
Look around and evaluate foreign exchange service providers. In addition to offering best exchange rate deals, also check out their longevity, reputation and trust factor in the market.
There are several forex service providers such as UAE Exchange that offers competitive currency exchange rates. To facilitate better decision making, they also provide the exchange rate calculator services to their patrons.
So, what are you waiting for? Explore the world without getting trapped in forex snares!