Where Can I Find the Best Exchange Rate for Foreign Currency?
If you are planning a trip, you may be wondering about exchanging some amount of foreign currency. Finding the best exchange rate for your foreign currency can be challenging, but the best rate is usually through your credit card.
What that means is, while traveling, you’re better off making purchases with a credit card if possible than by exchanging currency and paying in cash. While you may need some local currency on hand, you probably should exchange as little as possible.
That said, some credit cards charge an additional foreign transaction fee. If you travel a lot, then you may want a credit card that does not charge this extra fee on foreign currency purchases.
The worst exchange rate will be at one of those little airport kiosks that are so convenient. And your hotel cashier rate probably won’t be much better.
Your bank will have some flexibility on the what rate the bank offers you, and if you have a good relationship with the bank, you may get a better rate. The bank also offers convenience and safety. However, Canadian banks don’t normally have any foreign currencies on hand other than US dollars. If you want to buy other currencies, then you need to order them in advance.
One possibility, if you are needing to exchange large sums, would be to take a close look at some of the boutique exchanges such as the Vancouver Bullion Exchange. A boutique exchange could be used to handle a large international wire transfer.
If you take some time to call around and check exchange rates, you may be able to save a few dollars. However, in general, for relatively small amounts, rely on your credit card as much as possible. Even with an added foreign transaction fee, you will still likely be better off than exchanging currency and paying in cash.
Noah Belcher is an Investment Advisor with Industrial Alliance Securities Inc., and is a CERTIFIED FINANCIAL PLANNER® professional and a Chartered Investment Manager (CIM®), who help his clients achieve their financial goals and objectives. He offers personalized solutions and stellar customer service to clients with complex tax profiles who require top-notch advice.
If you have any questions about this article or would like to talk to Mr. Belcher about your financial profile, call his office at (604) 535-3454.
This information has been prepared by Noah Belcher who is an Investment Advisor with Industrial Alliance Securities Inc. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of Industrial Alliance Securities Inc. The information contained herein may not apply to all types of investors. Industrial Alliance Securities Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
