Exchanging Your Currency Before Moving Abroad

Are you planning to relocate abroad? Expatriation is an exciting adventure, but it can also be stressful if you don’t stay organised. Depending on your chosen destination, it may be necessary to exchange your pounds to be financially independent once you arrive.

To help ease this transition phase, this article provides all our tips and advice on how to exchange currency in the most cost-effective way before your move.

Key Takeaways:

• The exchange rate is a key factor in determining the final amount you receive after the transaction. Be sure to also consider any fees or commissions that may apply.

• Online currency exchange services, such as ChangeGroup, offer preferential rates and 0% commission. This makes them one of the most cost-effective ways to obtain your foreign currency.

• Planning your currency needs well in advance is essential to track exchange rate fluctuations and identify the best time to make the exchange.

• Rate comparison tools can help you find the most competitive deals online.

• Make sure to obtain your currency before you travel to avoid the high exchange rates often found at airports and tourist hotspots. Reserve your currency online and simply collect it from one of our exchange offices.

First and foremost, it’s essential to understand how currency exchange works to anticipate the associated costs.

Exchanging GBP for a foreign currency typically involves three factors:

• The exchange rate: This is the rate used to convert one currency into another. For example, a GBP/USD exchange rate of 1.3 means that for every £1 exchanged, you will receive $1.30.

• The margin: Financial institutions usually add a margin on currency exchanges to make a profit.

• Fixed fees and commissions: Some institutions charge fixed fees per transaction or a commission calculated as a percentage.

Make sure to consider the effective exchange rate, which is the rate including margin, fees, and commissions. This way, you'll make sure to better estimate the amount you will actually receive after the exchange.

There are three main options for exchanging currency:

• specialised international money transfer platforms;

• traditional banks;

• currency exchange bureaux.

Although currency exchange bureaux often have high rates, especially in tourist areas and airports, using an online service is generally the most economical option.

Online bureaux have lower operating costs, which directly impacts the exchange rates they offer on transactions.

At ChangeGroup, we offer a preferential exchange rate on all online orders, no matter the currency you wish to buy. We can also waive commissions to maximise the value of your pounds. Our home delivery service is ideal for getting the currency you need without any effort. We deliver your order within 24 hours to your home, saving you unnecessary time. For amounts over £800, delivery is free!

The favourable online exchange rate combined with our 0% commission makes this a particularly cost-effective way to exchange your currency.

Several online platforms allow you to make international transfers to convert large sums while keeping fees low. These services typically apply exchange rates close to the market rate, with reduced fees.

Be sure to carefully review the rates and conditions for using these services. Some platforms may charge fees above a certain amount. Compare offers to find the best deal.

It is possible to exchange currency directly with your bank, but this option is usually more costly due to high fees and poor exchange rates.

Banks typically charge fixed fees per transaction, plus a percentage commission ranging from about 0.5% to 3%. For international transfers, fixed fees may also apply depending on the amount.

If you choose this route, discuss with your bank in advance. For larger amounts, it may be possible to negotiate a better rate and reduce fees.

To give yourself the best chance of exchanging currency easily before your move, we recommend planning the transaction as far ahead as possible. Don’t wait until the last minute to exchange your pounds, or you risk paying a poor exchange rate.

Also, keep track of the currency exchange rate you are interested in. Several specialised websites, such as XE.com, allow you to monitor rates easily and choose the best time to exchange your money.

The currency market is very volatile, with significant fluctuations from day to day. Exchanging your money in several smaller transactions can help reduce the risk of bad timing.

Consider getting an international credit card to make payments abroad while minimising fees.

Finally, make sure to have some cash on hand before you leave so you can be financially independent upon arrival. Depending on your destination, it may be difficult or even impossible to pay by card. To avoid any stress, ensure you take enough cash with you.

Read also:

• Moving Abroad for Study or Work
• The importance of cash : Why it still reigns in a digital world