May 08, 2018 5

Things You Must Know Before Trading in Foreign Exchange in India

The trading of the world’s currencies is done in the foreign exchange market. With the currency being traded daily standing at trillions, the Forex market is one of the largest, most convertible markets in the world. 

Just like the stock market, there is luck at play in this market with fortune favouring those who have an eye for detail and an ability to forecast accurately. Contact forex agents in Mumbai to become proficient in the foreign exchange trading.

  • Balance – The balance of how much money you want to keep as cash and how much you want to keep in your travel cards is a dilemma that many struggles with. You must try to keep the maximum portion of the money in your Forex card as chances you are, you will get a better deal on this card with lower rates of interest.
  • Comparison – Vendors vary their prices with a change in trends in the market and thus you must try to secure the best deal possible. Securing the best deal requires you to research prices and compare at least 3 or 4 vendors and select whoever offers you the best deal. Vendors that are near your location may also offer home delivery of the currency.
  • Exchange – Planning beforehand is not only beneficial for the simplicity it provides but also because of a large amount of money it ends up saving. Airports resemble the absolute last option that you should consider as they are the final stop before the inception of your travels. Exchanges in airports charge heavy commission rates as they feel in desperation, you will end up paying whatever price they set.
  • Time – The time that you buy the foreign exchange is often an important consideration. The fluctuation of the currency rates can happen at a rapid rate and you must try to gain hold of the currency at a time when the price is reasonable.
  • Debit Card – The debit card that you use in the country you live is not an optimal option for travels around the world. When used somewhere out of India, even if it is an international card, there is a currency conversion mark up. This increment causes the cost of travels to be much more than it needs to be. Contact forex agents in Mumbai to obtain a Forex card and avoid this unnecessary increment.
  • Forex Travel Card – Traveler’s Cheque have now become outdated in several countries with Forex Travel Cards replacing them in several places. The high rate of interest charged on traveller’s cheque is one which is often discouraging despite the benefits it provides. You can even try to keep more than one Forex card if you feel the different one is offering a better deal than the original one.

Trading in foreign exchange and getting a favourable price just before your trip is probably unlikely. Securing the best possible price would require you to plan in advance. You must know that the RBI requires a valid reason to be given for the trading of foreign exchange though.