Money Changer Tips You Must Remember
There’s no denying that currency exchange rates are crucial to many people’s lives, mostly because it affects the value of money they spend or receive.
Whether you’re a tourist visiting Singapore, or you’re getting remittances from abroad, knowing the ins and outs of money changers in Singapore can help you maximise your money.
If you’re curious about the best money changer in Singapore, read our separate guide about it: “The Ultimate Money Changers In Singapore”.
Here at OMY Singapore, you will discover the following:
How Do Exchange Rates in Singapore Work?
The majority of people think that when they head to any money changer Singapore, they just need to glance at the foreign exchange rate displayed in the store and go with whatever value is written as “buy” or “sell.” But beyond looking at money changer buy and sell or considering your personal needs, you must first understand how exchange rates work.
To put it simply, exchange rates calculate the value of any country’s national currency compared to its counterparts in other nations. This not only affects how much money you will receive after going to a money changer, but even the price of loans, services, goods, and so much more.
So how much do money exchanges charge? Keep in mind that money changers buy and sell money at a higher rate compared to banks to make a commission and recoup the money they spent purchasing other foreign currencies.
What You Need to Know Before Going to a Money Changer in Singapore
Exchanging money at a money changer Singapore can be a nerve-wracking experience, especially if you’re not familiar with how it works. However, there are a few things you can do to ensure that you get the most out of your visit to a money changer and get the best money change rate possible.
Bring some local currency with you before travelling to Singapore
If you’re a tourist, it’s always a good idea to bring some local currency with you before travelling to Singapore. This way, you won’t be stuck without any cash in case you can’t find a moneychanger right away. Additionally, having some local currency on hand will give you a better idea of what exchange rates you should expect when you visit money changers in the area.
Visit places where there are many money changers
When in Singapore, it’s best to visit areas with a high concentration of money changers. This will give you a better chance of finding a better rate and comparing prices between different establishments.
Places like Arcade Money Changer, Raffles Place, Chinatown, and Lucky Plaza Money Changers are popular spots where tourists and locals alike go to exchange currency. These places are easily accessible and offer competitive rates. Once you compare Arcade Money Changer rate with airport money changers or even ones at Orchard road, you’ll notice a drastic difference.
However, be wary of money changers that offer exchange rates that are too good to be true, as they may be operating illegally or using unfair practices.
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It’s not recommended to go with the first money changer business you see because you may end up missing out on a better deal. Shopping around for the best exchange rate may take some time and effort, but it will be worth it in the end.
When visiting different money changers, don’t hesitate to negotiate if you think the rate is too low or if you’ve found a better rate at another money changer.
Also, be aware of any hidden fees or charges, such as commission or service fees, that may increase the cost of the exchange. It’s also recommended to ask for a breakdown of the costs to avoid any surprises.
Be cautious and vigilant
Unfortunately, there are unscrupulous individuals who may take advantage of those who are not familiar with the process of exchanging money. This is why you should be cautious and vigilant when dealing with money changers.
Make sure to count your money and check the exchange rate before leaving the money changer. If you have any doubts or concerns, don’t hesitate to ask questions and clarify any information you may not understand.
In addition, be aware of your surroundings and keep your money and valuables safe. It’s best to exchange money in well-lit and crowded areas to minimise the risk of theft.
Have your information ready
If you’re exchanging more than S$5,000, you will need to provide identification, such as a passport or NRIC. Having all your documents ready will avoid any delays or complications.
Check the exchange rates before buying
Before visiting money changers, it’s important to check the current exchange rates for the currency you want to exchange. This will give you an idea of what to expect and help you avoid getting ripped off.
You can easily check the exchange rates online or through mobile apps. There are even money changer business establishments that display their rates online such as the Arcade Exchange rate live on platforms like CashChanger SG.
If you’re exchanging a large sum of money, it’s best to call ahead to ensure that the money changer has enough cash on hand to accommodate your transaction.
As much as you can, don’t exchange money on weekends
By now, you may be wondering when is the best day to change money. Although there is no specific day that offers the best currency exchange sell rate, the rule of thumb is to not exchange money on weekends.
During this time, the rates tend to be less favorable. This is because the international foreign exchange market is closed during weekends, which means that money changers may charge higher rates to cover their costs and make a profit based on the last closing.
If you need cash on weekends, it’s best to exchange only a small amount. However, be aware of any foreign transaction fees that may apply.
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Avoid exchanging money at airports
It’s important to avoid exchanging money at airports if possible. The airport money change rate tends to be unfavourable, and these establishments also charge higher fees than other money changers.
If you must exchange money at the airport, only exchange a small amount that will last you until you can find a better rate elsewhere. Additionally, be aware of any hidden fees or charges that may increase the cost of the exchange.
Know that you can go cashless
In Singapore, going cashless is becoming increasingly popular. A lot of money changers offer currency exchange through credit and debit cards, as well as mobile wallets. When using these, make sure to check the transaction fees since it can add up quickly.
Ask for a receipt
When exchanging money, it’s important to ask for a receipt. This will serve as proof of the transaction and the exchange rate that was offered.
The receipt should include the amount of money exchanged, the exchange rate, any fees or charges, and the date and time of the transaction
In case you encounter any issues with the transaction or if you need to report any discrepancies, having a receipt will make it easier for you to provide evidence of the exchange.
Make sure to keep the receipt in a safe place and avoid throwing it away until you’re sure that the transaction was successful.
A Word from OMY
Overall, exchanging money in Singapore is a straightforward process as long as you remember the tips listed above. By following these pointers, you can maximise the value of your money and ensure a smooth experience with money changers in Singapore.
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