Do you plan to study in the UK? Then find here 5 ways you can cut the cost of your education abroad, when you exchange currencies.
Whether you get a high pound total or not will have a big impact on the kind of life you can expect in the UK.
To take an example, the Australian dollar lost almost 10.0% against the UK pound between January and June 2013.
If you were Australian, and planned to study in the UK, studying abroad would hence be 10.0% costlier over that 6 month period.
Given that, how can you make sure you get the best foreign exchange rate?
1. Find out the current exchange rate.
First, you can use Google to find out where the exchange rate is at the moment.
Let’s say you’re travelling from India to the UK to study. In this case, you’d type “INR to GDP” into Google, and this will return the current exchange rate.
You’d hence have an instant idea of what the exchange rate is. This will help you when you’re trying to find the best deal.
2. Find out what’s going to happen next to the exchange rate.
Second, you can talk to a foreign exchange specialist, to find out what’s going to happen next to the exchange rate.
You’ll receive an idea of whether the exchange rate will soon improve or not, and can also ask to be updated when the rupee strengthens.
In this way, you’ll find out when the exchange rate is best.
3. Don’t try to exchange currencies at the ‘peak’.
Next, it’s important not to try and exchange currencies when the rupee is at its peak against the pound.
This is because the foreign exchange market is moving all the time, making it almost impossible to find the peak.
Generally, people see that the exchange rate is improving, and wait and wait and wait, but by the time they exchange currencies, the peak has gone.
Instead then, it makes more sense to exchange rupees for pounds when you see the rupee is rising.
4. Find a money transfer service that you like.
In addition, it’s worth finding a money transfer service that you like.
This is because, you’re likely to spend some time dealing with the service, so you’ll want to make sure you like them.
Get a sense of whether they know what they’re talking about, and if you have a good rapport.
This will make the process of sending your money to the UK much more pleasant.
5. Use a currency specialist like Pure FX instead of a bank.
Last, when you actually come to exchange currencies, you should use a currency specialist instead of a bank.
This is because a currency specialist will give you an exchange rate up to 4.0% better than a bank, which can add up to thousands of pounds extra.
That could be enough to make your study in the UK affordable, or give you enough money to travel in the UK while you’re there.
Moreover, it means you can feel confident you’re getting the best deal!
About the author
Peter Lavelle is a currency dealer at foreign exchange broker Pure FX.
To discuss the best way for you to transfer money to the UK, email him at email@example.com or call +44 (0) 1494 671800. He’d be delighted to help.