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Travelling abroad calls for a need to buy foreign currency. There are few important things which will help you to plan on this.
1. Buy Foreign exchange well before your travel date
Avoid last minute purchase because that’s where most people get hurt of high rates and left with no choice but only to buy because of urgency. It is advisable to get your foreign exchange ready before a week, or in the worst case at least three days before your travel date. Currency rates can fluctuate highly. If the rates are on the higher side, you can have the luxury of waiting two or three days to see if the rates are falling.
2. Avoid buying from airport foreign exchange counters
Exchanging currency from foreign exchange outlets at airport is an expensive deal. Foreign exchange counters at airports are designed to exploit desperate travellers. You will be charged a commission of around 10 to 15 percent. Since you are left with no other choice, you cannot bargain either.
3. Plan your Cash - Card Ratio
It is never possible to have an accuracy of how much foreign currency one will actually end up needing or using. International travel is full of surprises. The ideal solution is 30-70 break-up.
Get a rough idea of how much you would require for the entire trip. Carry 30% of amount in Cash Currency which you can use to pay for your essentials and keep the reaming 70% in your Forex travel card. Forex Cards come at a cheaper exchange rate than cash currency and it’s safer too. Always check about the relative rates of card and cash from the vendor you are planning to buy.
4. Compare exchange rates before you buy
Foreign exchange rates are extremely dynamic and change every 3 seconds. It also vary from place to place. Buying without comparing rates, can make one get a bad deal for their currency, which reduces one's ability to spend and enjoy the trip.
5. Make sure that your Forex dealer is RBI authorized
Always be careful about dealing with unfamiliar forex dealers. There are many fraudulent outlets. Make sure that the vendor has money changing License issued by Reserve Bank of India. Always insist bill on all transactions so that you don’t get into any trouble later on. You can purchase card or cash online, from boomkyforex.com, which is safe and offers good rates with home delivery facility.
6. Difference between International Debit card & Forex card
Your international debit/credit card issued in India carries currency in INR. When you swipe it some where out of India, the transaction happens in the foreign currency which includes with it a currency conversion mark up ranging up to 5 percent. While your forex card carries the local currency and is devoid of this mark up