If you are a beginner, then it is obvious that you are overwhelmed with the fact that you are crossing the border. In such a euphoric state of mind, it is very important to examine all your options with regards to how to get best travel money rates and whether it is safe to buy travel money on line and how to indulge in travel exchange. Following are some reality checks before deciding on any of the options :

To buy travel money on line: It is really a tricky affair to get the best rates when you are out to buy the currency of the other country. The best way is to look internet as it is the most accessible tool to know the currency rates. There are so many currency converters that help you do it and with that you can exactly know the travel exchange rate. However, it has its own limitations. First, there is going to be a small gap between actual currency change and what is posted on line. Second, whenever you want to exchange the currency, the rates will be moved by a few cents, so, there is going to be a little difference in what you have seen on line and what your money provider will give you. This difference is called spread which is the place where bank and brokers make money.

1) Say BIG NO to airport or tourist exchange booths : Both of these are meant for emergency services and therefore, if you approach them, the travel exchange rate will be much lower than what you can get at banks or other money service providers.

2) Check out for bank rates : Having checked the on line currency rates, the next step is to check the bank rates. You can either telephone or ask over the counter what are the travel exchange rates being offered by the bank. However, the credibility and convenience are two major factors that play a great role in getting best travel money rates from the banks.

3) It is important to be careful about transaction fee : To put it in simple words, when you are indulging in travel exchange rates, the banks charge around 1% of the amount you are buying. Sometimes, the banks may waive the fee. But, it depends upon the specific bank policy. Fee may be levied on travellers’ cheques as well.

4) Avoid drawing cash on your credit card when you are abroad : This sometimes seem very tempting as it is crafted like that. But, wait a minute! Do not get carried away by this temptation. It is the last resort of the completely bankrupt traveler! The transaction fees are very high and therefore, in your attempt to get best travel money rates, you will actually end up paying higher transaction fees for no reason. Therefore, compared to credit card, it is better to use debit card as debit card charges are relatively lower. But, yes, it is obvious that you can use it only when you have enough money in your account.