3 rules to remember when exchanging currencies

Trading one currency to another is called foreign exchange. For example, you are changing the Dollar into Rupee. The amount in INR in return for your USD depends on the current exchange rate of the currency pair. The exchange rate fluctuates every minute as banks and currency vendors trade the money to make a profit. 
Vendors and banks trade multiple currencies and hence, let you exchange various currencies such as SG Dollar to INR, USD to GBP and INR to GBP, among many others. However, these financial institutions charge commissions for the currency exchange service. The commission and margin are the two most important variables to remember when converting one currency to another: Euro to INR, USD to Euro, GBP to USD, etc. 
Exchanging currency is easy. However, there are a few things to ensure to get the best deal. To help you, here are some rules to remember when exchanging currencies:
Avoid exchange at airports
The convenience of exchanging your currency as soon as you land in a new country is quite lucrative. However, this facility has its cons, such as high commissions and margins. In layman's terms, it is more expensive to convert USD to INR at an airport or other destination meant for tourists than the cost of trading currency through an online exchange. 
Hence, it is better to convert US Dollars into Indian Rupee or any other currency from your local exchange or through an online exchange. Approach your bank to help you with it. 
 Buy currency online 
 There are benefits of exchanging your currency online, such as flexibility to complete the transaction anywhere, freedom to compare different exchange rates, accessible and swift transaction process, etc. Today, several banks allow you to exchange currencies through their online portal. Thus, you can convert the Dollar to INR and other currencies in a few clicks.
 The other benefit of exchanging your cash online is the freedom to use a currency convertor. For instance, Dollar to INR converter estimates the amount you will get for trading a certain amount of USD. This lets you know your budget when you plan your trip. Currency converters are free to use and accessible from anywhere.  
Avoid ATMs and credit cards
 Making international withdrawals from ATMs or using Credit Cards to procure foreign currencies exposes you to international transaction charges levied by your bank. These may not seem a lot initially, but they pile up significantly in the long run.