Traveling is something great. This allows you to meet new people, discover new landscapes, new cultures … If the introduction of the euro has made it easier to travel within the euro area, traveling to other countries means trading Your Euros against the local currency, a financial transaction that can be expensive. Find out where to change your currency at the best price. Cambio service provides the money exchange facility between United States and Brazil.
1. Banks: practical, but expensive
When a currency is convertible – it is the case of the dollars, the pound sterling … It is generally possible to order before leaving. Ordering foreign currency from your bank is reassuring and convenient – you will already have local currencies when you arrive at your destination. However, this often has a high cost. Indeed, many banks offer exchange rates that are not necessarily advantageous and require minimum fees often high, in the range of 5 to 10 € in addition to foreign exchange fees!
2. Exchange offices: a fluctuating quality / price ratio
If the currency of the country where you are traveling is not freely convertible – such as the Chinese yuan, the Moroccan dirham for example – you cannot exchange your currency before leaving. In this case, the easiest way to convert your currencies is to withdraw cash before you leave – preferably euros or dollars, the most international currencies – and wait to get to their destination for exchange the local currency.
Good to know # 1: As part of the fight against money laundering, the maximum amount of cash that you can carry on you is usually 10 000 € per person (amount to be checked according to your destination).
Good to know #2: like the banks, exchange offices sometimes charge their services at gold prices, especially in airports where the clientele is captive. In general, the exchange offices closest to the baggage carousel are often the most expensive. To save money, go around the exchange offices and change € 50 or € 100 to the cheapest exchange office of the airport. Wait until you reach the city center to exchange your money, as exchange offices are cheaper than in the airports.
3. The blue card: simple and cheap (although)
One of the cheapest and most convenient ways to exchange currencies is still to withdraw money from a vending machine once you get to your destination. Removing money from an ATM generates two to three types of fees:
Let’s say you plan to travel to the United States. At the time these lines are written, 1 US dollar is worth 0.77 euro. If the distributor proposes to withdraw dollars on a dollar = 0.79 euro, the distributor charges you a commission of 0.02 € for every dollar withdrawn. If you withdraw 300 dollars from the distributor, the withdrawal will cost you 6 € commission.
ATM withdrawal fees
The majority of French banks charge a fixed fee for each withdrawal in an ATM abroad, usually around 3 €.
If it seems obvious in France to be able to withdraw money from any distributor “free” this is not always the case abroad. Indeed, installing and managing a vending machine has a certain cost for local banks, which often passes them on to their customers by asking them for a commission, often between $ 1 and $ 5 per withdrawal.
How can I pay less for changing your currency at the vending machine?
By adding up the different fees (foreign exchange fees, fixed charges from your bank, distributor charges), withdrawing foreign currency can cost you the equivalent of 6 to 15% of the amount withdrawn. To pay less, there are four solutions:
Remove large amounts
Better to make a withdrawal of $ 300 than two withdrawals of $ 150. Thus, you save a withdrawal, therefore 3 € of fixed costs less.
Privilege banks that do not charge a distributor fee
In Cambodia, for example, the majority of banks charge $ 5.00 for distributor fees. When I was informed, I learned that Canadia Bank did not charge any distributor fees. In the end, it cost me less to go to this bank in tuk-tuk ($ 3 round trip) than if I had withdrawn money from the first bank
Subscribe expat packages
If you are traveling abroad, consider purchasing a suitable banking package. So when I was living in Vietnam, I had subscribed to the Jazz International offer. For 10 € per month, I did not pay any fixed fees when I withdrew money.
Pay with your credit card
If you pay with your credit card abroad, you will not pay any fixed charges, only variable fees. So, when I was in the United States, I remember sometimes having paid with my bank card a simple Coca-Cola to a dollar and pay only 2 cents of exchange fee. Convenient. Important: If you withdraw a lot of money from abroad, your bank may block your card if you are a victim of fraudulent use of your credit card. To avoid this, consider notifying your bank that you’re going abroad.