Exchanging foreign currencies.
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Join Date: Sep 2009
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Exchanging foreign currencies.
I have been trying to find a cost effective way of repatriating my allowances (in foreign currencies) back into Australia. Travelex offers "no commission" but the rates that they give equate to a 10% gouge. The Banks are worse (CBA, anyway). Does anyone have any suggestions where the best place is to get money changed?
One way or another, you'll be screwed. However, i found that once a currency leaves its natural domicile it becomes, in a perverse way, more valuable when you need to acquire some. In order to offload it, money changers (as opposed to banks and companies like Travelex) will generally offer a most attractive rate. The guys in a hole in the wall in Singapore will give you a far better rate than you'll get at any bank. Have you thought of them?
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Often USD has the lowest rate of screwage (word?). So much so that it can be better to change local currency into USD prior to departure, then change the USD into AUD on arrival in Aus.
Yes, you get screwed twice, but that can still work out significantly better than converting less common currencies into AUD directly.
Interestingly, if you look at Forex trading web sites, the same applies - swaps between USD and any other currency usually offer better buy/sell margins compared to swaps between 2 other currencies.
Alternatively you keep the USD in a shoe box for when you take a foreign holiday somewhere, and then use the cash for the holiday (probably get a good rate for your USD on arrival at your holiday destination.)
The Euro could be similarly liquid, I haven't checked recently.
Edit: agree with Ken here:
That pretty much agrees with what I'm saying above... Get rid of your local currency before you leave, they want it, but Oz exchangers don't. However every currency exchanger has a safe full of USD, so they can give you a much better rate on USD.
Yes, you get screwed twice, but that can still work out significantly better than converting less common currencies into AUD directly.
Interestingly, if you look at Forex trading web sites, the same applies - swaps between USD and any other currency usually offer better buy/sell margins compared to swaps between 2 other currencies.
Alternatively you keep the USD in a shoe box for when you take a foreign holiday somewhere, and then use the cash for the holiday (probably get a good rate for your USD on arrival at your holiday destination.)
The Euro could be similarly liquid, I haven't checked recently.
Edit: agree with Ken here:
I found that once a currency leaves its natural domicile it becomes, in a perverse way, more valuable when you need to acquire some
I assume you're talking about lots of different currencies in relatively small amounts of each on a regular basis ? Unfortunately it's difficult to give a blanket answer.
If you go through Singapore regularly, the money changer at the Mustafa Centre gives good rates and is familiar with less common currencies.
There is a new internet based service called WeSwap which could be suitable.
firstratefx are okay for larger amounts.
Avoid the forex counters at Bangkok Airport, the rates are fixed identically and you will do much better in the city.
Avoid the backstreet changes in Bali no matter how good the rates seem, the little s***s practice sleight of hand.
If you go through Singapore regularly, the money changer at the Mustafa Centre gives good rates and is familiar with less common currencies.
There is a new internet based service called WeSwap which could be suitable.
firstratefx are okay for larger amounts.
Avoid the forex counters at Bangkok Airport, the rates are fixed identically and you will do much better in the city.
Avoid the backstreet changes in Bali no matter how good the rates seem, the little s***s practice sleight of hand.
Agree with all above. The $US is the best. For $12 a month you can keep a $US bank account in Australia with the ANZ. That's what I'm going to do. Best of luck.
Thought about gold or silver ? Buy over a period of time when lower price and sell later when price higher. Just a thought.
May be something else that can be bought n sold rather than straight currency change?
My twopenny worth ( plus 10 percent!!)
May be something else that can be bought n sold rather than straight currency change?
My twopenny worth ( plus 10 percent!!)
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probably not applicable but i use a citibank plus account with a visa debit card for my aud-thb exchange, seam to get just a fraction off the forex rate and only fee's are the 180 thb atm fee unless you use a citibank atm in bangkok
https://www.currencyfair.com P2P transfers need a bank account that can accept the foreign currency, or citibank atm card no fees and favourable forex rates and ATMS in most countries.
Are we talking cash or bank balance?
If bank, consider an online transfer service like HiFX or "currency online"... They offer pretty good rates, low fees and if you're sending a large enough amount and can "wait", you can place an order that will hold until the exchange rate hits your requested rate.
If cash, that can be a bit hit and miss... Hole in the wall money changer, but have your conversion amounts precalculated so you don't get screwed or miss them adding fees etc. Also, recount the money yourself before you walk away from the counter.
The safe route is just using the bank, but that comes with associated costs like fees and crap rates.
Maybe, if you don't look too dodgy
, you could try approaching travellers hanging around looking at moneychangers (or backpackers??) If they want to swap some currency?? 
If bank, consider an online transfer service like HiFX or "currency online"... They offer pretty good rates, low fees and if you're sending a large enough amount and can "wait", you can place an order that will hold until the exchange rate hits your requested rate.
If cash, that can be a bit hit and miss... Hole in the wall money changer, but have your conversion amounts precalculated so you don't get screwed or miss them adding fees etc. Also, recount the money yourself before you walk away from the counter.
The safe route is just using the bank, but that comes with associated costs like fees and crap rates.
Maybe, if you don't look too dodgy
, you could try approaching travellers hanging around looking at moneychangers (or backpackers??) If they want to swap some currency??
