Exchanging foreign currency in Vietnam for traveling or even forex trading can be an overwhelming experience. There are currency exchangers everywhere and too many forex brokers offering ‘the most favorable rates.’ This not only makes things confusing, but also leaves room for mistakes.
Let's take a look at the common mistakes that one can make when exchanging foreign currency to Vietnamese Dong (and how to avoid them):
1. Exchanging currency at the airport
Airports can seem like a convenient place to quickly exchange currency before going out to explore Vietnam, but most currency exchange counters at the airport offer poor exchange rates as compared to banks or other authorized currency exchangers in the city.
In case one has no no local currency on them, they can exchange a limited amount of cash at the airport and then exchange the remaining money after locating a reputed exchanger with good exchange rates.
2. Not researching forex brokers in Vietnam
For traders looking to exchange foreign currency to trade the forex market, it's just as important to research forex brokers in Vietnam to find the most favorable rates possible.
Forex trading also requires trust as there are financial transactions involved. Ideally, the forex broker should be regulated by relevant financial authorities and licensed as well.
It is essential for traders to choose reliable and regulated brokers to ensure the safety of their funds.
3. Not comparing exchange rates of different places
Exchange rates can vary a lot depending on different regions and places. So it's really up to people to do their own research to find the most favorable exchange rates possible.
Start by leveraging online resources and currency converter calculators to review the real-time rates for the day. At the same time, look out for any commissions and hidden fees that each currency exchanger may end up charging. It's always good to go for currency exchange establishments that provide a transparent fee structure without any hidden charges.
4. Failing to count money after exchanging
After exchanging foreign currency and receiving Vietnamese Dong, always count the money before leaving the currency exchange counter. In case there is any kind of issue or discrepancy, notify the authorized individuals about it immediately. Even if the notes seem fine at the time of exchanging, make sure to ask for a receipt of the conversion transaction for future reference
5. Exchanging money at hotels
Some hotels in Vietnam may offer to exchange currency and travelers often make the mistake of going with it just because of the convenience.
Not only are most hotels unauthorized to exchange currencies, but they might also offer a considerably higher exchange rate, when compared to banks or licensed currency exchangers.
Ideally, one should not rely on hotels for exchanging currency unless it is an absolute emergency and there are no other options that are available. Alternatively, travelers can also opt for hotels that accept USD as payment to save up Vietnamese Dong and use the cash later somewhere else.
6. Exchanging large amounts of cash
Exchanging all of the available foreign currency into Vietnamese Dong at once may seem like a good idea in theory, but it can lead to security risks like pickpockets and robbery.
Moreover, since Vietnamese Dong has a low value compared to other major currencies, one will end up with a large amount of cash even after exchanging a small denomination like $100.
Instead, a better way would be to consider a mix of cash and digital payment options like credit cards or digital wallets.
7. Not checking the currency condition
The first thing to do after receiving exchanged Vietnamese Dong is to check the currency condition. Any damaged, stained, or torn bills should not be accepted as travelers won’t be able to use it across Vietnam. In case there are some damaged notes which have already been received, consider getting them exchanged at a bank instead of an exchange counter.
At the same time, it's also a good practice to do an authenticity check for all the received notes.
8. Exchanging money on the streets
As unbelievable as it may sound, there are street vendors in Vietnam who exchange foreign currency– but they are mostly unauthorized and illegal. These unauthorized individuals may offer unfavorable exchange rates in return of quick conversions, without any verification of documents. Some street vendors may also offer exchange rates which are too good to be true with the aim of passing off counterfeit currency as legitimate currency.
9. Using ATM to withdraw cash without looking into withdrawal fees
Withdrawing money directly from ATMs is the safest way to get Vietnamese Dong without having to go to a bank or currency exchange counter. But it's important to remember that there are also withdrawal fees involved when using the ATMs. The exact withdrawal fee can depend on the bank and the type of card an individual holds.
If one is not careful, they may end up paying more in withdrawal fees than they would have at any currency exchange place. That is why it's a good practice to do research and calculations in advance before taking out cash through ATMs.
Avoid these mistakes when converting Dong
Finding a place to exchange currency in Vietnam is the quick part. Finding a reputed place with a good exchange rate in Vietnam is the hard part. Be wary of anything that seems too good to be true and avoid these common mistakes for a seamless currency exchanging experience.
With Blueberry Markets, traders can exchange their VND to USD or AUD directly when they deposit money into their trading account, and trade the forex market.
Sign up for a live account or try a demo account on Blueberry. today.
Disclaimer:
- All material published on our website is intended for informational purposes only and should not be considered personal advice or recommendation. Traders should carefully consider their objectives, financial situation, needs, and level of experience before entering into any margined transactions.
