Exchanging currencies weighs heavily on any travel budget, especially while visiting three countries. Currency conversion fees are often accompanied by markup fees on cards, conversion charges, and other hidden fees. However, with certain practices while travelling, a foreign trip involving multiple countries can be made convenient, easy and free of these charges.

I saved roughly ₹46k on currency exchange across multiple countries by getting a multi-currency forex card, exchanging money at online marketplaces instead of airports or hotels, always choosing to pay in local currencies, using cash for small payments, knowing my bank’s global partners and using ATMs fewer times.

Small changes in habits can often save you a lot of money by steering clear of needless charges. Your world tour dreams are definitely not going to be restricted by any hefty currency exchange fees.

How I Saved Money on Currency Exchanges

1. By Using Online Currency Marketplaces and Forex Cards

Online currency exchange marketplaces offer transparency and much cheaper alternatives to anyone conducting an online transaction or travelers exchanging currencies for their trip.

They always show real-time exchange rates. With these, I could choose to either order physical currency right from my home or get a travel card at the favourable rates before my trip.

I Utilized Multi-Currency Forex Cards

Prepaid forex cards are a lifesaver for international trips. In the BookMyForex multi currency forex card, for example, I can load up to 40+ different currencies. It can be connected to the BookMyForex app too for utmost convenience. I didn’t have to exchange currencies again and again for my trip to the USA, UAE and Thailand simply because I had loaded up my forex card prior.

Since the ATM would’ve charged me around 100 Rupees each time just to check the balance, I used the app and avoided spending hundreds of rupees.

Card getting short on money? Just load some from your bank into the card through the app instantly.

These cards offer inter-bank rates that aren’t inflated. ATMs and stores also accept them internationally like credit cards and they charge zero markup fees and no hidden fees. By using forex cards instead of credit cards, I saved around 3000 rupees in this regard on my USA trip and almost the same amount in the UAE and Thailand each, since I avoided the extra 2-3% percent charges that come with credit card transactions compared with forex cards that charge zero markups.

Furthermore, you can lock the rates at which you get a forex card so that no future currency fluctuations affect you. Watch the real-time rates for some time before your travel dates so you are aware when the rates are favourable. Then get the card locked at those rates.

I had extra currency in the card even after my international travel, so I unloaded it back into my bank account as well.

2. I Carried a Mix of Payment Methods

It’s not allowed to carry more than 25000 INR outside of India, so it makes sense to carry money in other ways. And since my travel plan included three countries, getting Indian Rupees from one place to another to exchange them internationally wasn’t a wallet-friendly option either. A forex card can load multiple currencies and hence is very useful for such trips like mine.

I carried a mix of cards and cash. That helped me tackle most emergencies, like in a remote area when payment through cards wasn’t available.

Keeping my diverse payment options at different places also helps me against theft or loss.

It also helped in managing big or small payments accordingly. It makes sense to buy public transport tickets or street food via cash and hotel room bookings via a forex or credit card, since it might offer cashbacks on such transactions.

3. I Got in Touch With My Bank

I contacted my home bank before my trip to notify them about my travel plans, to avoid getting my card or account blocked for suspicious activity. Taking care to know about their global partner banks also helped. These global partner banks must have ATMs abroad that allow money withdrawal without charging as much as other foreign banks’ ATMs might. In the long run, this saved me around a thousand rupees.

One can also try getting a debit or credit card from their bank that charges no foreign transaction fees.

4. I Budgeted My Trip

I made a rough budget of my expenses, including what I would spend on shopping, meals, accommodations, and transportation. I was able to load an estimated amount of money into my forex card and carry enough cash.

Making a budget also gave me a rough idea of how much cash I should withdraw from the ATM in one go. Fewer withdrawals means less conversion fees charged by the ATM, since they charge a fixed amount per withdrawal.

I carried around 30% of my budget as cash for my Thailand trip. The rest I had loaded into my cards. By withdrawing only once or twice on each trip, I saved more than 2500 rupees since it charged around 175 Rupees for each withdrawal across countries.

It also helped to avoid overspending since I had a good idea of how much I was spending. Forex cards also help with this since I loaded only a certain amount of money in them.

Mistakes I Avoided While Exchanging Currencies

1. I Avoided Currency Exchange at Airports or Local Shops

Airports are often termed as the worst place to exchange currencies. They charge a high percentage of conversion charges and offer poor exchange rates, costing a lot more money than currency conversion should.

The local kiosks and shops also charge much more than online forex services or banks, since they also charge a commission. Even banks can charge a profit margin on top of the exchange rates they offer.

The true exchange rates, called the inter-bank exchange rates, can be seen in real-time online. I did not trust local guides or hotels either with currency exchange. There’s a risk of being scammed or getting counterfeit money. Sticking to online foreign exchange marketplaces or banks and their international partners is a wise decision.

By avoiding airport exchange on all my trips, I saved around 13K rupees more. They charge around 10-15% more than the actual rates.

2. I Always Paid in Home Currency

Dynamic Currency Conversion is when someone chooses to pay in your home currency via cards at foreign stores or services. Paying in Indian Rupees, while seeming familiar and comfortable, will cost you a lot more than the local currency would.

DCC might seem hassle-free, but it is definitely not worth paying the extra 7-8% of conversion fees. Not to mention the exchange rates weren’t in my favour either. Opting out of DCC while using forex or credit cards is always a good option.

Choosing to pay in local currencies saved me tons of money, amounting to around 20K. This includes paying in local currency for hotels, convenience stores, food and basic shopping.

Note that a few stores might not even ask and consider paying in your home currency via DCC as the default option. It can be a way of subtly cheating the customers, so always check what amount you are paying and in what currency.

How I Saved on Currency Exchange Across Three Countries: A Quick Summary