3 ways to maximize savings on Currency Exchange Fees
When you are moving money from your US dollar to Canadian dollar account or vice versa, for investments or expenses, you want to get the best deal on currency exchange to maximize your savings. Here are a few tips on how you can achieve this so that you can keep more money for what really matters.
1. Consolidate the amount you want to exchange
The key here is to bulk buy and make the least amount of transactions. More processing usually means more fees and you typically get better rates for larger amounts. If you are exchanging money, an idea would be to ask your network if they are willing to exchange currency too and put all the money in for one single transaction.
In some cases, exchanging a large amount of currency will bring you better rates or at least make it possible for you to negotiate with your exchange provider.
2. Avoid exchanging with banks / ATMs
You might be tempted to use ATMs for withdrawing foreign currency when you are abroad. This could be a little better than exchanging currency at a kiosk, but will still bring along high transaction fees. We only recommend using this method if you need a small amount of money and urgently. For large transactions, look for alternate exchange providers who actually don’t intend to charge high fees so you do not get ripped off.
KnightsbridgeFX provides rates that are about 2% lower than most banks. If you were to exchange a lot of money, this percent savings could add up and bring you substantial savings in the amounts of hundreds to thousands of dollars. For example, for $50k, you would get an additional $1050 straight into your pocket, instead of spending it on bank fees.
3. Plan ahead of time
If you are thinking of exchanging large amounts of money for making an important expense such as buying a car or even a foreign property, take the time to think it through. It would be a good idea to first look into the best time for currency exchange. You don’t have much to lose and a lot to gain by having the money prepared in advance.
Our team can direct you to the latest currency news upon which would you can make some better decisions as to the best time for you to exchange your money based on your goals, as well as offer you personalized rates depending on the amount you are about to exchange.
At this point, maybe you’re asking yourself how is it that we can offer rates lower than the banks? Truth is, we exchange in bulk, in millions of dollars at once, which gives us leverage to negotiate with financial institutions (using the same tip we recommend for you:). That brings us savings, which we can pass onto you, so you can benefit from some of the lowest currency exchange rates on the market.
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By KBFX | March 23, 2020 | Finance Tips | 0 comments