Exchanging Your Currency Before Moving Overseas

Thinking about relocating overseas? Living abroad is an exciting adventure, but it can also be stressful if you’re not properly organised. Depending on where you’re heading, you may need to exchange your Australian dollars so you can manage financially once you arrive.

To help make the transition easier, here are our top tips and practical advice for exchanging currency as cost-effectively as possible before your move overseas.

 

Key Takeaways:

• The exchange rate plays a major role in determining how much money you’ll receive after the transaction. Be sure to also factor in any fees and commissions that may apply.
• Online currency exchange services, such as Prosegur Change, offer preferential exchange rates and 0% commission, making them one of the most economical ways to obtain foreign currency.
• Planning ahead is essential so you can monitor exchange rate movements and choose the best time to exchange your money.
• Exchange rate comparison websites can help you identify the most competitive rates online.
• Make sure you obtain your foreign currency before departure to avoid the poor exchange rates commonly found at airports and tourist areas. Reserve your currency online and simply collect your order from one of our Australian exchange bureaux.

Before exchanging currency, it’s important to understand how the process works and the costs involved.

Exchanging Australian dollars into a foreign currency generally involves three key factors:

• The exchange rate: this is the rate used to convert one currency into another. For example, an AUD/USD exchange rate of 1.3 means that for every AU$1 exchanged, you’ll receive US$1.30.
• The margin: financial institutions generally add a margin to currency exchanges as part of their profit.
• Fixed fees and commissions: some providers charge fixed transaction fees or a commission calculated as a percentage of the amount exchanged.

Make sure you look at the effective exchange rate — meaning the rate after margins, fees and commissions are included — so you can estimate how much money you’ll actually receive after the exchange.

There are generally three different ways to exchange your money:

• specialist international money transfer platforms;
• traditional banks;
• currency exchange bureaux.

While exchange bureaux often have high exchange rates — especially in tourist areas and airports — using an online service is generally the most affordable option.

Because online exchange services have lower operating costs, they’re often able to offer more competitive exchange rates on transactions.

At Prosegur Change, we offer preferential exchange rates on all online orders, regardless of the currency you need. We’re also able to waive commission fees to help maximise the value of your Australian dollars. You can then collect your order free of charge from one of our Australian exchange bureaux.

The combination of competitive online exchange rates and 0% commission makes this a particularly economical way to exchange your currency at a lower cost.

Reserve your currency online

Enjoy the best exchange rates and 0% commission when booking your travel money online.

Exchange Currency

Several online platforms allow you to make international money transfers and convert larger amounts while keeping fees low. These services generally offer exchange rates close to market rates, along with lower transfer fees.

Be sure to carefully review the rates and conditions before using these services. Some platforms may charge fees once certain transfer limits are exceeded. Comparing providers can help you secure the best possible rates.

It’s certainly possible to exchange your currency directly through your bank. However, this option is generally more expensive due to higher fees and less favourable exchange rates.

Banks often charge fixed transaction fees, plus a percentage of the exchanged amount — typically between 1% and 4%. For international transfers, they may also apply additional fixed fees ranging from AU$15 to AU$70 depending on the amount transferred.

If you decide to go through your bank, it’s worth discussing your options with them beforehand. For larger amounts, you may be able to negotiate a more favourable rate and reduce overall costs.

To give yourself the best chance of exchanging your currency smoothly before your move overseas, it’s important to plan ahead as much as possible. Don’t leave your currency exchange until the last minute, otherwise you may end up with an unfavourable exchange rate.

It’s also a good idea to monitor the exchange rate of the currency you need. Websites such as XE.com make it easy to track exchange rates and decide on the best time to exchange your money.

The foreign exchange market can be highly volatile, with significant fluctuations from one day to the next. Exchanging your money in several smaller transactions can help reduce the risk of poor timing.

You should also consider getting an international credit card to minimise fees when making payments overseas.

Finally, make sure you have enough cash on hand before departure so you can remain financially independent upon arrival. Depending on your destination, paying by card may be difficult — or even impossible — in some places. To avoid unnecessary stress, ensure you travel with sufficient cash.

Read also:

• When is the best time to exchange currency?
• Should you exchange currency online or at the airport?
• How to estimate your travel budget?
• Why planning your currency exchange ahead of time can save you money?

Reserve your currency online

Enjoy the best exchange rates and 0% commission when booking your travel money online.

Exchange Currency