Travel planning to international destinations always throws an important question about money –Which is the best source to get Forex? There are many options available to travelers. One can buy Forex in India from traditional Forex changers, from banks and even from trusted online sources like Buy Forex Online India Pvt Limited. But, did you know Forex rates can vary drastically from one money changer to another? Money changing has become a lot easier these days, but if you want to get the best exchange rates, there are a few things you need to be aware of.
What is money changing?
Money-changing involves an exchange of notes denominated in different currencies.
Which factors affect exchange rates?
Exchange rates may vary depending on the following factors:
Supply and Demand:Like any other commodity, Forex rates rise and fall in response to the forces of supply and demand. Consumer spending directly affects the money supply, and vice versa. The supply and demand of a country’s money is reflected in its foreign exchange rate.
A country’s economy:When a country’s economy falters, consumer spending declines and trading sentiment for its currency turns sour, leading to a decline in that country’s currency against other currencies with stronger economies.
Interest Rates: "Benchmark" interest rates from central banks influence the retail rates financial institutions charge customers to borrow money. For instance, if an economy is under-performing, central banks may lower interest rates to make it cheaper to borrow
How do Forex rates vary from one money changer to another?
When exchanging money in a bank: When you go to a bank for Forex, keep in mind that the rate which is used to change your money may be unfavorable. If the exchange rate given is determined purely by supply and demand, you will end up with a price that is close to what is being quoted in theforeign exchange market globally. In addition to these rates, many banks charge a commission fee.
When buying Forex from traditional money changers: It is ideal to compare the rates offered by multiple money changers as the exchange rates between one to another can vary significantly. They charge a commission on the transaction. Commission is generally charged as a percentage of the amount to be exchanged, or a fixed fee, or both.
Changing money at ATMs: If you would rather not carry large sums of cash, ATMs are a convenient way to obtain local currency at a reasonable exchange rate. But keep in mind that your withdrawal may be subject to a minimum fee, so check with your bank before leaving home.
Buying Forex Online:There are several online websites such as BuyForexOnline.com, which are one of the trusted Forex dealers in India. Buying online lets you compare exchange rates with ease and also adds in the convenience of having your foreign exchange delivered straight home.