# Travel >> Travel Preparation >> Currency & Exchange

How to Exchange Foreign Currency

When traveling abroad, an easily overlooked aspect of preparation is getting your dollar exchanged into their currency. A big mistake many people make is not considering this well in advance and then either trading at the last minute, or follow the "...wait until we get there" approach. The best way to exchange foreign currency is to plan ahead and watch the market, and use a bank on your home soil.

Instructions

- 1
  Research early. Watch the financial markets on TV and on the Internet.
- 2
  Visit foreign currency exchange rate websites. Pick ones that are live, up to the minute or at least up to the day. Review historical rates to estimate when the most favorable time is more likely to hit.
- 3
  Plan your vacation activities as best you can so you have a decent estimate of your expenses.
- 4
  Research the rates at local banks in your area. Banks should all be on the same system, but you may find one bank will offer you a more favorable rate than another. Make sure to check with your current bank as well, as they may offer a better rate to their customers.
- 5
  Estimate how much you are going to spend and add approximately ten percent to that and this is the amount you will want to exchange before you leave. Visit the financial institution that gave you the best rate and exchange that currency.