You are ready to go for your long awaited South America vacation. Have your passport, visa/s, vaccination/s and travel insurance done.
Luggage is packed, your camera/video ready and you have your money belt in place (because you wouldn't travel without one, would you?).
However, how do you go about money matters?..
Where do you exchange currency for your journey?..at the airport on arrival?..in your local bank before departure?..
Before rushing to exchange money anywhere, take a minute and read what the experts have to say about getting the best foreign currency exchange rate...
Everyone looks forward to a vacation, especially if youíre traveling to a remote island or a sandy beach in another country.
The thrill of planning the vacation is almost as much fun as the trip. Locating the perfect place to stay and the coziest eateries is always an exciting adventure.
We do get caught up in travel details and forget one important aspects of a foreign vacation and thatís the currency exchange.
Waiting to exchange money upon arrival in Buenos Aires for a holiday on a gorgeous beach in Argentina can create quite a financial hangover if the Peso suddenly surges overnight and your currency crashes and burns in the exchange.
Just a 1150 point shift could cost you an extra $115 for every $1000 you exchange at the airport.
That hurts; no matter what kind of budget youíre on.
The best way to exchange currency is to average your exchanges, especially if your plans include countries like Hungary or Russia.
When you exchange small amounts during the planning process you know how much each exchanges costs. You offset any sudden currency surges before you leave home.
A realistic and effective budget starts with averaging your exchanges.
Eight out of ten people will tell you to go to the bank to average your exchanges.
Banks are not the most economical place to exchange currency. Banks charge a fee for every exchange which can be 3% or more and they only post one or two rates a day, which means you may not get a real time rate.
Credit card companies are drooling and canít wait to exchange your money. They use a daily rate that has a built-in profit and they add a surcharge on every vacation transaction, which means you donít know how much youíre spending until you get the statement.
Thatís a major league screw up when it comes to staying within your budget. Airport exchange merchants post a rate that includes a commission, so try to avoid using them.
The best way to save money when you exchange currency is through a currency broker. A broker watches the market constantly and will let you know when to trade so you can take advantage of a favorable rate.
Currency brokers do make a couple of points on exchanges, but they still save you money and you never have to leave home to make the exchanges.
Additional information on trading currencies, forex, useful articles and broker reviews can be found at ForexTraders.com, so make sure to visit the site to educate yourself on this volatile market.