Tips on Trading Foreign Currency

Changing currency when traveling is always necessary. Thats why when one goes to a money exchange he or she should realize where and how to change it. There are many ways of getting scammed or robbed out of a few dollars. Although with these tips in mind the exchanger will find it hard to rob you out of your money.

First of all one must realize where he or she is traveling and if the country itself does not accept US dollars. Many touristic al destinations accept dollars, however if one is traveling to Europe or mainly another country with actual strong currency it is advice to check the exchange. The US dollar is the balance. So if one who lives in Spain has euro and would like to exchange 100 euro for dollars and the exchange rate was 1 for 1.2. He would get 120 dollars. This is the case where the US dollar is worth less. If one was to go on vacation to the Dominican Rep. he would have a exchange of 38 pesos = to one US dollar. This is how currency trading works according to the value of gold one’s country posses. The latin Peso means weight in gold, a little tip is that their is more than one peso all with different value according to their respected countries. 

One should never trade their currency through a form of black market due to the dangers it could have. However if one plans to get more out of their money go ahead and visit several exchange stores, as the airport will always try to make more money. Unfortunately their are many countries who have a black market that will seriously boost up your money’s worth. Venezuela for instance has a legal exchange and a black market exchange due to civil and government disagreements. For a legal trade a US dollar would be worth 3 Bolvares Fuertes, in the black market exchange it would be worth a staggering 5-8 dollars. 

Important notice! Always exchange the traded currency in the visited country itself. Many latin currencies will not be accepted. The Venezuelan Bolivar is a clear example of currency that is not tradable outside of Venezuela. Paraguay, Guinea, and many less developed countries.[1](,2933,453584,00.html)

If one desires to invest by foreign exchanges it is to be said that it has more ups and downs than any roller coaster. However if one desires to keep their money safe the recommended currency would be the US dollar or the European Euro. Recently the British pound took a dramatic hit and one could see that Japans Yen became stronger once the tsunami hit. This is all the result of a gold increase, for example when the twin towers collapsed everyone invested in gold making the US dollar less valuable. This occurred for many currencies. An impressive case is that of the Dominican Republic where the currency was cut in half allowing those who invested in to double their money. 

Its recommended to exchange currency in one location, this being so one will get to know the people and the quick buck or two wont be put. For example exchanging a dollar at location (A) where the exchange is 21 will save you 11 dollars if location (B) exchange rate is 20 dollars. Always ask a cab driver where to exchange if one plans to do it a quicker way. Always note not to pull out so much currency as it might not always be safe. The regulation is 10,000 US dollar to travel with, all other amounts should be on a credit card.