3 tips to help you convert currencies like a pro

This is a commercial collaboration with Compare Forex Brokers.

To get the most out of your travels, it pays to think like an investor when you plan ahead. It may not be a deciding factor when you choose where to travel next, but knowing how, and when, to convert your money into local currencies can save you a lot of hassle when you reach your destination.

1 Don't leave it until the last minute

Just because airports have foreign exchange booths, doesn't mean you should wait until the day of your flight to convert your currencies. Ask any financial expert, like the team at Compare Forex Brokers, and they'll tell you that the secret to converting currencies like a pro lies in planning ahead.

2 Follow financial markets before your make your move

Most major banks will help you to compare foreign currency exchange rates from multiple international destinations on any given day, but it pays (often literally) to watch financial markets more closely. You may already understand that foreign exchange rates float freely against one another, meaning they are in constant fluctuation. But this doesn't mean that you can't forecast the perfect point in time to carry out your currency conversions.

According to foreign exchange trading experts Compare Forex Brokers, it's pretty rare for currency prices to fluctuate dramatically without plenty of forewarning. In fact, in most situations, currencies don't change in price by more than a few basis points each day. But what does that mean for you? Basically, if you pay attention to the market you'll be warned about when you ought to convert your dollars into the currency of your destination allowing you to capitalise when exchange rates are at their strongest.

3 Think about packing travel debit cards

Unlike credit and debit cards, travel money cards don't incur steep exchange or transaction fees, saving you the stress of being charged to access your own money. They also offer debit card functionality without being linked to your bank account, helping to minimise the risk of financial loss due to fraud or theft. The best part? Some travel money cards may also provide more competitive foreign exchange rates. Can't argue with that.

4 Book tours, tickets and accommodation when the market moves in your favour

Most of us plan our overseas holidays well in advance, so Compare Forex Brokers says it's a good idea to make bookings when the Australian dollar is strong. When you watch the market you'll know if things move in your favour, allowing you to make the most of your dollars by buying foreign currency and organising big ticket items such as hotel accommodation.

5 Know the (practically) hidden fees before you fly

If you plan on making purchases with your credit card abroad, that's okay, but know that you may incur additional costs. According to the experts, most standard debit or credit cards can be used overseas, but the surcharges can be steep. With some ATMs in international destinations hitting you with transaction fees of $10 or more, make sure you do your research before you make a withdrawal on a whim in a foreign location.

The bottom line? If you plan wisely you can travel with greater freedom and more money. When it comes to making your Australian dollars go further it all comes down to planning ahead, packing a travel card and keeping an eye on the market in the lead up to your departure. When your currency exchange is timed right, your trip can be less about watching your budget and more about being present in the moment. Just as a holiday should be.