How to Buy Forex for the First Time
A Student’s Guide

When you are about to embark on your academic adventure overseas, there are certain things that you will do for the first time. One among them is Forex also called foreign exchange. As a student, whether you pay tuition fees abroad or explore the currency exchange for financial knowledge, understanding how to buy forex for the first time is important. The process may seem intricate at first but with proper guidance, you can easily navigate the whole procedure. 

Forex includes exchanging currency and the rates change depending on various factors. If you are buying forex for the first time, you need to consider when to purchase forex and where, how to compare the exchange rates, and which method of investing in foreign exchange caters to your requirements. In this blog, you will learn how to buy forex and simplify everything for you. 

What is Forex? 

Also, called foreign exchange, forex is the converting of a specific currency into another for many reasons like education, travel work, etc. When you go overseas for academics, you need to convert your home currency to your academic destination’s currency. As an Indian student studying in another country, for example, Singapore, you need to convert Indian currency into Singapore Dollars. The foreign exchange determines the currency value. So, knowing them is highly essential.  

Terms You Should Be Aware of Knowing How to Buy Forex 

Before knowing how to buy forex, let’s understand the terms, you will come across. You can confidently and easily navigate the intricate foreign exchange world by learning about these terms. Below are the terms you should know before purchasing forex: 

• Remittance: The term refers to money transfers from your family members in your home country to you. 
• Exchange Rate Money: The term refers to the difference different providers offer and the official exchange rate. 
• SWIFT Code: It is a unique code which is used to figure out forex service providers when conducting wire transfers globally. 
• Foreign Transaction Charges: Forex service providers charge foreign transaction fees to convert currency and conduct transactions abroad. 
• Floating Exchange Rate: It refers to the system in which supply and demand’s market forces ascertain a currency’s value. 

How to Buy Forex? 

Buying forex for the first time can make you feel overwhelmed. But do not worry. Once you understand the process, you will find the whole process simple. Here is a step-by-step guide on how to buy forex: 

Ascertain Your Needs 

First of all, you understand the reason you require forex: travel, tuition fees, or student investment. Your purpose will assist you in selecting the appropriate sum and currency. 

Compare Exchange Rates 

Exchange rates are subject to variations. Therefore, checking the rates from different providers is advisable. Some dealers and online platforms offer better rates. 

Select an Authorised Provider 

Many forex service providers are available. Search for the best and most reasonable rates, low charges, and reliable services. 

Choose Your Purchase Method 

Various buying methods are available when buying forex. Choose whichever method you find appropriate. The best thing is to have all the three options handy. Below is a brief description of each: 

• Forex Cards 
  Also called travel cards, they are the most popular options for students. They have low fees, better security and fraud protection, making them the best method for students. 
• Wire Transfer 
  The wire transfer method is mainly used for large amounts of money like paying tuition fees or accommodation charges. Many colleges prefer wire transfers for easy and safe funds transfer.
• Cash 
  Cash is a helpful option for taking care of immediate expenses. Also, if you visit remote areas, cash will be more useful than other methods. 

Prepare Documents 

Now is the time to prepare the documents. Some forex service providers need study visas, travel documents, and identification proof. Gather these important documents and keep them handy. Check the document criteria in advance and prepare accordingly. 

Make the Purchase 

Now that you know your purpose for buying forex, which provider to approach, which method to use, and what documents are needed, it’s time to make the purchase. Cross-check the exchange rate and extra changes, after which you can finally buy forex. In case you are using a Forex card, keep monitoring the transactions to avoid unnecessary charges. If you have used cash, keep it secure. 

Factors to Consider Before Buying Forex 

Before buying forex, there are certain factors you need to consider for a seamless transaction. Now that you know how to buy forex, let’s check what factors you need to consider before purchasing: 

Exchange Rate 

Exchange rates always vary, and monitoring them regularly before you exchange your currency is advisable. Fluctuating market conditions, political stability, and economic factors affect exchange rates. You can monitor them for some time and convert them when the rate is low. 

Charges 

Compare the fees of companies providing forex services, including educational consultants, banks, ATMs, etc. Take transaction charges, currency transaction fees, reload charges, ATM withdrawals, etc., into account. Compare everything and select the option offering reasonable and competitive rates. 

Protection from Fraud 

Ensure your forex service provider has stringent security and fraud protection measures to safeguard your money. Search for EVM chips, PIN security, and whether you can block or cancel cards in case of theft or misplacement. 

Convenience and Accessibility 

Take into account the convenience and accessibility of your chosen forex services. The service you select must be present in your home country and your academic destination.  

Regulatory Compliance 

Ensure that the forex service you select should operate within the regulatory framework and follows both countries’ rules and regulations. Make sure that certified regulatory authorities authorise and license your chosen forex services. 

Reviews and Suggestions 

Research well. Check reviews, suggestions, and recommendations for different companies offering forex services. Read the experiences of other students like you to gain a deeper understanding of forex services. 

Support In the Case of Emergency Situations 

Consider how companies offering foreign exchange services manage emergencies. Ascertain whether their customer support assistance is available 24/7 and if they offer quick resolution and assistance in the case of lost or stolen cards. 

Seeking Professional Assistance and Guidance 

When looking for how to buy forex, seeking assistance from an expert is valuable. We provide guidance that caters to your requirements and help you make a sound decision. 

Conclusion 

Forex is significant for academic adventure abroad. With a basic understanding of exchange rates, considering the fees, exploring various currency options, and following the rules, you can easily navigate the intricacies of forex. Be cautious when you monitor the exchange rates, plan your transactions, keep in mind the rate changes, know how to buy forex, and do not hesitate to seek professional guidance. Remember that forex is more than just converting currency; it is all about optimising your funds and efficiently managing your finances while you are abroad. 

At Career Gyan, we understand how much money is valuable to you, so we ensure you get your money’s worth with our forex services. Connect with us now!