When to exchange funds for studying abroad
August 25, 2023
The Study Group on Global Education report estimates that approximately 11% of Canadian undergraduates study abroad during their academic careers. As students prepare to return to school, we see international students heading abroad as well, and their outlook on planning for school has a few additional steps. A common question is when should you exchange funds for studying abroad?
The currency exchange market is live 24/7 and reacts to the macroeconomic influences in the day-to-day world economy and microeconomic influences within Canada and other foreign countries. We rely on our FX Traders to be on top of the market so our customers don’t have to, and we share how the FX market trends have been leading up to the need to transfer funds.
The best time to exchange funds depends on your comfort level in booking your trade online or speaking to your FX Trader to set a buy rate you are interested in achieving. You want the best rate for the exchange, and you don’t want to pay commission fees to maximize the school funds.
- The first step is speaking with an FX Trader to agree on the exchange's goals and the transaction's timing. You don’t have to make these decisions alone, and you can rely on the experience of someone who trades daily to help you navigate the market conditions and find the best fit for transacting online or directly with a Trader.
- Depending on the frequency of your needs, you may decide to open an online trading account, allowing you to book trades 24/7. Each transaction receives a quote, and then you can proceed or wait.
- You may opt to work with an FX Trader via email or phone. You would receive a quote for the exchange amount before proceeding with the
- If working with an FX Trader, you discuss whether to wait or proceed with the transaction.
- If you can plan in advance, have this conversation a month or two before when you need the funds to take advantage of market swings for the currencies you are trading between. Some currencies have broader or narrower swings or react more or less to economic conditions.
Top articles for studying abroad:
The international student financial prep list shares what to consider when studying abroad and what to factor in when preparing to attend the program in a foreign country, including:
- Tuition
- Accommodations
- Textbooks and course materials
- Passport & visa needs
- Travel costs
- Health Insurance
- Scholarships available
Deciding which expenses will be one-time or recurring may influence how you manage the payment of these fees and costs. Planning in advance allows you to take advantage of the currency exchange market to get the best rate when sending an international wire transfer. If your school is in the US, you can set up a USD account at your Canadian bank, transfer CAD and USD throughout the year, and maximize the rate through a currency exchange partner such as VBCE. Using your bank for these transfers will not get you the best rate.
Saving while paying for international tuition and student expenses shares tips and advice to get a stronger rate for your currency exchange, which can save you up to $2400 per year when attending school abroad. Our clients attend US, UK, Ireland, Australia, the Caribbean and Europe schools. Some students are undergraduates, and some are in advanced graduate programs such as business or medical university. We all like to save money, and when we share with our clients, we can save them 2-3% on their currency exchange regardless of whether they are looking for USD, Euros, British Pounds or other types of currencies, and help them with the transfers, they are delighted.
Additional resources for studying abroad:
Questions?
Speak to FX Trader Pandu Vitharana directly to ask questions or get help setting up your international school tuition and expenses today. Pandu can be reached directly at Pandu@vbce.ca.