How to get best deals while buying foreign currency?

As soon as the holiday season arrives, few people like to travel abroad. One of the most important things for your foreign tour includes the foreign exchange. Travellers can usually purchase foreign exchange 180 days prior to the travel date by submitting copies of pan card, passport and visa or air ticket. However, if you do not want to block your money foreign exchange can be purchased 3 to 4 days prior to your departure. You can keep the following pointers in mind in order to get the best deals while purchasing foreign currency:

1. Check who offers what?

There are several players in the market who offer Foreign Exchange Services in Chandigarh. These may be authorised money changers, travel agents, banks and unregulated grey market. Usually, the forex dealers charge the lowest commission when compared to banks or travel agents. You can check out the rates of various forex dealers, banks and money changers and choose the one which offers the most competitive rates. 

2. Avoid Grey Market

The grey market may offer lower rates, however, should be avoided as there may be several risk factors associated with them. There may be counterfeit notes or no receipt may be issued for the foreign exchange by the grey market. If you use a counterfeit note overseas, the authorities will ask you to produce a receipt. In the absence of a receipt, it is regarded that the money has been taken from the grey market.

3. Do not exchange money at Airports

It is very expensive to exchange currency at international airports. This is mainly because the real estate at airports is very expensive. The common goods that are available at cheaper prices outside are usually available at 10 times the cost at the airport. The same logic applies to currency as well and there is a loading of 2 to 5 percent depending upon the location of the airport.

4. Excess cash must be avoided

Carrying excess cash has dual risks of theft and counterfeit currency so it is better to carry a plastic travel card instead. The chip based prepaid forex cards not only offer enhanced security however there is no fear of loss of value. These cards can be used at any of the POS terminals and are widely accepted across the developed countries. Plus in the case of loss of forex card, it can be hotlisted to ensure the amount remains safe.

So enjoy your holidays with your loved ones and for getting the best deals on foreign exchange, check the various sources and choose wisely. Most of the experts though advise using the forex card which not only is widely accepted however also proves to be an effective hedge against the fluctuations in exchange rates and does not involve any additional charges.