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If you are planning to exchange money, make sure you are aware of the additional cost that comes with it. It is just like purchasing beer in a baseball stadium. In many airports, currency exchange kiosks are available where travelers can easily convert cash, but it comes with a lot of costs, including, commission, conversion charges, etc.

The best way to exchange currency is to choose a bank that offers a minimum rate; finding foreign exchange offices to covert money before traveling overseas or carry out transactions with ATM or credit cards. However, it all starts with planning.

Planning enables you to make the most of your foreign trip and spend smartly. Here are some of the options where you can exchange currency while making a smart decision at the same time.

Use Debit or Credit Card

It is one of the most popular methods used by many people who travel overseas as it allows you to make a purchase at current exchange rates. There are some banks that waive the transaction and foreign currency fees, which makes it one of the cheaper and smart options for travelers.

However, many people do not know how to choose the best rates. You can find various platforms online that provide detailed information about which bank waives the charges and what rates do they offer? By choosing a product that doesn't charge an ATM fee or foreign transaction fee can help you save a lot of money.

However, the only downside of using the credit or debit card is that there are many developing or underdeveloped countries where you cannot use them for making purchases. You have to carry cash to commute from one place to another.

Withdrawals from Foreign ATMs

There is a huge network of ATMs around the world. Your bank normally charges the current exchange rate whenever you withdraw money from an ATM and might charge 1 to 2 percent transaction fee as well. It is possible that when you use a foreign ATM, you might be charged an additional fee between 2 and 5 dollars in addition to that transaction charges. Be smart about it and withdraw money up to the daily limit to avoid this fee.

You have to be aware of the fact that every ATM or credit card transaction will come with some kind of fee, but it is much lower compared to what banks or airport kiosks charge.

Foreign Exchange Platforms

This is yet another great option for people to convert their money. You can find a number of foreign exchange offices in tourist places or airports. In fact, there are some online platforms that are offering outstanding currency exchange services to their customers in a secure environment. For example, Knightsbridge is a good place to exchange currency in Toronto as it enables people to convert the cash from the comfort of their home. You just need to sign up for free and its agent will contact you to guide you through the process.

The process, itself, is very simple; book a rate, transfer funds, and get the payment delivered to the desired destination. They are very particular about the transparency of every transaction so as to ensure a high-quality service. Every time you select the rate, a written letter is sent to you for confirmation. After that, you can transfer the funds and the payment will be delivered to the destination within a day or two.

Apart from that, there are currency exchange houses in different countries where you can buy local currency. The rate offered at these exchange offices is different, so walk around a little to look for the best rates offered.

Again, it doesn't matter which method you choose to convert the currency, there will always be fees involved. However, the trick is to minimize it with proper planning and research. The more you research and get information, the better. It can keep your overall budget to a minimum and enable you to make the most of your time if you are traveling with your loved ones. Therefore, choose wisely and try to avoid airport kiosks or banks that charge a very high premium to exchange currency.