Like most people who’ve watched Zindagi Na Milegi Dobara, I had planned a trip to Spain. But I was intimidated by the conversion fees between INR and the Euro. It made me wonder if forex conversion always came with such high charges. Turns out, you have to steer clear of the local shops holding the glowing “Money Exchange” signs.

For first-time international travellers, currency exchange can be daunting. A few points to remember, however, can make your international trip flawless. Equip yourself with the right understanding of how and where to get foreign currencies to enrich your travel experience.

Common Forex Mistakes While Travelling Internationally

Top forex mistakes Indian travellers make include ignoring budget planning, exchanging currencies at airports or local stores, relying on only one payment method, paying in Rupees at international stores, using a foreign bank’s ATM, and not getting a prepaid forex card.

1. Wanderlusting Without a Plan

While I get the urge to be spontaneous and how making impromptu plans is so exciting, you should avoid executing those plans when an international trip is involved. Take a little time to reflect on your plan. Prepare a budget for the trip.

Look up the sites you’ll be visiting for any fees. Check local transport prices and add them up. Whether you’ll use public transport or cabs is up to you.

A planned budget can help in several ways:

1.1 Learning the Best Way to Save On Forex

Watch for real-time currency conversion rates. They shift according to economic or political events in the world. You can set rate alerts so that the web notifies you of the fluctuations.

Keep track of when the conversion rates are lower and get a Prepaid Forex or travel card to lock the forex rates, so you can be safe against any future rate changes.

Since you now have a limited amount of money stored in the forex card, it will limit the risk of overspending. You know how much you will be spending.

Furthermore, these cards can be loaded with multiple foreign currencies at once. Your trip plan can hence include both France and the United Kingdom, with just one prepaid forex card.

1.2 Evading High Airport Currency Exchange Rates

Last-minute hassles, including exchanging local currency at the destination airport or even at local stores, can have you pay extra conversion rates. Airport conversion fees are almost 5 to 15% higher than those offered by online foreign exchange services like BookMyForex, etc.

Hence, online forex services and prepaid forex cards are much more convenient.

2. Relying on One Payment Method Only

Residents of India can carry up to 25,000 INR worth of cash outside the country, so it’s a no-brainer to either convert the rest into foreign currency or carry prepaid or credit cards. This limit is on Indian currency, not foreign currencies.

However, ATMs might not be everywhere. Remote areas might not accept cards.

Relying on just one method has the risk of being stuck somewhere in a foreign country, calling your friend or parents. Therefore, a mix of payment methods gives you the chance to analyse the method that saves you the most. 

You’ll have to dig into banks, travel credit cards, or forex cards that offer the best deals. Many of those benefits adhere to travellers and tourists, offering reward points on a set expenditure, like hotel bookings.

2.1 Mixing Convenience With Rewards

Make big purchases like rooms or stays with credit cards. They mostly have offers or reward points for that.

Get a chunk of cash in advance in the local currency of your travel destination so you won’t be paying conversion fees on every small transaction. This can help in trying out street foods, for example, and public transport tickets on the go. Local currency is best for small international transactions.

Avoid storing all your cash in the same place. This applies to your cards as well if you have more than one.

2.2 Research to Understand Your Preferred Mode of Payment

Your preferred mode of payment should also depend on what is convenient in the destination country. Norway, Sweden, and Finland are largely cashless, while Morocco, Egypt, and Romania remain highly cash-dependent.

3. Not Engaging With Your Bank

Before using your debit or credit card internationally, make sure to notify the bank and avoid getting the card blocked or marked for suspicious activity. This also gives you a chance to know if they have any offers on international spending.

Be aware of any global partners your bank might have. When you have to withdraw cash, use those banks’ ATMs rather than any third-party ones.

4. Paying in Home Currency in Foreign Nations

Dynamic Currency Conversion allows payments in home currencies rather than foreign local ones. While this might seem convenient in theory, it can get you to pay extra conversion and service fees.

Sellers at certain stores can ask you to pay via DCC, but do not opt for it. Rather, make use of local currency or your nearest ATM to withdraw cash there only. If you were shopping, withdraw your expected expenditure in cash at once.

5. Not Exercising Caution

Indian tourists often overestimate the security of foreign countries and the trustworthiness of all foreign citizens. Exercise caution when it comes to safety and finances. Avoid exchanging currencies at shady places.

While one should not be overtly suspicious of the locals, it makes sense to tread lightly if a local offers to convert your home currency for you. Even with guides, it is advisable not to exchange currencies since there is a high chance that you might be scammed.

6. Not Getting an International SIM

Getting an international SIM can not only save your calling costs but also become immensely helpful in emergencies. Such as being stuck somewhere with minimal cash and your card blocked. Contacting your bank’s home branch would be a lot easier with an international SIM.

7. Neglecting Travel Insurance

Often, we overlook the security travel insurance provides. However, it is an essential step for a stress-free trip.

One must be prepared for the worst. Imagine losing not just your luggage, but also the foreign currency you exchanged. International travel insurance can save you from the aftermath of this nightmare.

Not just that, but consider how our health can be affected while travelling in an unfamiliar environment to which we are not accustomed. Travel insurance can cover these medical expenses. They also come in handy when your flight is delayed or cancelled due to any unforeseen event.

Final Thoughts

Forex mistakes can eat into your travel budget before your trip even begins. Get smart with your currency game—plan ahead, compare options, and avoid emotional or last-minute decisions. A little prep goes a long way.