How to save using the exchange rate to your advantage

Foreign exchange rates fluctuate on the regular, and can affect you and your business negatively by a lot. Especially if you frequently transfer money internationally (either through wires or through mobile payment apps like Paxum) you can definitely feel how strongly foreign exchange rates can affect you. But what you might not know is that you can in fact take advantage of these fluctuations; if you look out for the benefits, you would see that businesses who sell products and services internationally can and should consider using foreign exchange. The question now is: how is that so? Let’s find out and learn how you can save some money with the help of the exchange rate.

Make sure you stay in your bank’s network

When you use any nearby bank’s ATM to withdraw some cash, take precaution and make sure that it is from a similar bank network of your debit card. Certain banks charge a higher transaction fee when using a card from a different banking network. You could also avoid extra fees and charges if you possess a multi-currency bank account. Make sure you have some of the local currency in your account before continuing. By having so, you can use said card for online shopping and cash withdrawals – with usually zero fees attached.-  even for third party cash machines.

Check for any Hidden Fees

Many banks leave out mentioning certain fees that can raise the total amount by a huge percentage. For instance, banks actually charge extra as markup from foreign exchange rates. Add that with the transaction fee and the foreign exchange rate, and the extra costs may rump up into a significant degree. Make sure to research whether your local banks have hidden fees such as this. Calculate the total amount you would have to pay. If you can, convert your currency into that of the destination’s currency before sending it overseas, in order to avoid having to pay extra.

Exchange your Money during the Weekdays, If You Can

Markets all over the world close around the end of the week. Since the exchange rate can change at any moment every week, banks charge slightly higher rates during the weekends to combat any potential setbacks from the market that may occur. As a result, exchanging your money during the weekend may cost you much more than if you did so during Monday or Tuesday. Avoid doing so.

Sign Up for a Multi-Currency Bank Account

If you live or work outside of the United States, then you can choose to sign up for a multi-currency bank account. A multi-currency bank account helps significantly to rid you of any extra costs that may come from fluctuating exchange rates. With an international account, you can transfer money between your accounts with ease. Some multi-currency accounts even let you set the exchange rate to something you’re more compatible with.

In Conclusion

Foreign exchange rates constantly fluctuate, and this can mess with you if you aren’t careful. But by simply observing and making smart decisions, you can in fact avoid having to pay a lot the next time you transfer money to someone else.