What are the Options Available for Doing Currency Exchange in India and How to Choose the Best One?
Do you live in India and need to travel abroad for a personal trip or work? You must be knowing that you need to be well covered financially both for predictable expenses and also for unforeseen expenditures while on foreign land. Hence you would certainly be on the lookout for a good option for money exchange in India every time you make a visit. Or maybe, you are a student from India who is studying abroad. Budgets are limited and forex is an integral need for your expenses, isn’t it?
There are multitudes of ways to help you cover your money exchange needs. In fact, there are many platforms and methods which can help you get the best exchange rate from USD to INR, USD to GBR, or any money exchange rate. Each one of these methods comes with its own pro’s and con’s. Being aware of the various options and also how each differs from the other can help you choose the right one that matches your specific requirements. Confused? There is no need to be so. Just read on and all your doubts will be cleared!
The age-old trusted banks
The oldest and perhaps the most trusted forms of money changers have been the banks. Handling forex via a bank brings in a sense of security, doesn’t it? Do you go to the same bank where you hold your savings account or have investments with? Does the bank representative tell you that these are the “best rates” that you would get?
Are you aware that in the guise of best rates, banks actually charge you high inter-bank rates, as there are intermediaries that the banks have to pay and these charges are passed on to you? These can be as high as a whopping 13% on the 2-way exchange, say INR to a foreign currency and then back to INR!
Airport forex kiosks
These are for those who are unplanned and last-minute forex buyers. Airport kiosks may seem convenient as you travel, but are you aware how much they can fleece you? Their exchange rates and ‘hidden charges’ are perhaps the worst, tilted in their favour, at the cost of unaware travelers. They can cause quite a dent in your pockets and thereby make your travel budgets go haywire.
Foreign exchange brokers
Ever heard of this term? Well, it means a person who buys and sells various currencies on his clients’ behalf in exchange for a commission for his offered service.
For decades, banks had this market all to themselves. People had no choice but to bear with these banks and pay the high fees charged by them. However, the emergence of these brokers have been an effective alternative to banks when it comes to foreign currency exchanges. In addition to charging a lot less, these brokers also hold a variety of other advantages over the services offered by many banks.
- Hands-on assistance, help and guidance
- More cut-throat exchange rates
- Faster processing (because they are solely focused on this field)
However, we can’t always be sure with these money-exchange brokers. Why so? Well, this is because they can often use our lack of knowledge to misguide us into paying more than the set rate. Confused again? Don’t worry, just read on!
Online forex marketplaces
You’ll be happy to know that there prevails much bigger online foreign exchange platforms than brokers as well as established banks that hold all the above-mentioned advantages and also offer a lot more! These online platforms provide their customers with the power to be informed and then choose.
How to choose the best option for your currency exchange needs?
There is no ‘best’ option! Rather, the availability of so many options makes it all the more confusing! But there is no reason to fret! You can learn the nuances of forex and choose the best option for yourself! Just look for a reliable online forex marketplace!
You must be wondering what are the benefits offered by these forex marketplaces. Some of them are listed below.
Democratizing the forex market by disruption
The digital medium works on creating an open environment with the power to educate and create awareness, so that the consumer can make an informed choice. Online forex marketplaces are precisely these, as they become meeting places for multiple options, including banks, and forex dealers/companies, who tie-up with them. So you can see all options on a single platform.
Best exchange rates available in the market
Online forex marketplaces want to provide the best exchange rates to their customers. They do so by making multiple comparisons with RBI-approved banks, forex dealers & other competitors and thus, provide a variety of options to all its clients. It serves as a one-stop-destination for your currency exchange requirements! This way, the power of choice resides in the hands of the buyers and not the individual banks or forex brokers!
Most of the banks and brokers operate on a fixed exchange rate for the entire day. They try to ensure to make a profit by maintaining a margin of around 5% on all money exchanges even if the currency has fluctuated dramatically.
Live rates are real-time rates i.e, the rates that prevail exactly at that point of time at that very particular day. In today’s time, live exchange rates are gaining immense popularity. This is because using these rates, a consumer pays exactly that amount that works in his/her favour. Online forex sites will flash the live-rates for you always!
Unlike traditional forex dealers or banks, online forex marketplaces allow you to freeze in rates of your choice for upto 3 day by paying just 2% of your total order amount. This is proven to be a plus point among many consumers. You book at a certain rate and can avail of the same rate, even when actual rates fluctuate!
Not satisfied with the current exchange rate? Don’t worry, we have good news for you! The forex marketplaces have started the provision of the rate-alert feature. This enables you to set a rate that suits your needs. When the market forex rate reaches upto your required amount, you will be sent a notification via an email or SMS informing you about the same. You can then satisfactorily exchange money at that rate completely hassle-free!
Spread the word and earn!
Will a bank ever give you a bonus on referring their services to someone else? The answer is a big no! But, forex marketplaces do so! Yes, you can earn money or other prizes just by spreading some information! Moreover, they have multiple other such offers running throughout the year providing different benefits to their customers.
So what are you waiting for? Next time you plan on going abroad and are stuck finding ways to perform money exchange in India, you know just what to do! Open your computer or any other device, login into an online forex marketplace, and enjoy the best currency exchange services- all from the comfort of your home!
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