Where to exchange currency without paying high fees: the WorldRemit guide

Where to exchange currency

There are many places where you can exchange currency at home and abroad, including: banks, currency exchange kiosks, airports, hotels, and ATMs.

But remember, not all currency exchanges charge the same rate; and some businesses, particularly in tourist areas, take advantage of travellers  in order to make a profit.

So, make sure you check the rates, fees and charges before exchanging money. And, as a rule of thumb, it’s probably better to do this before you travel.

Banks

Offering reasonable exchange rates and the lowest fees, banks and credit unions are usually the best places to exchange currency. And you can do it before you travel, too, to get the best rates. Many banks offer currency exchange - though there may be a small fee if you exchange less than a certain amount, as stipulated by the bank.

You may be able to order currency at a branch location, or by phone or online. You can have it delivered to you, or arrange for pick up at a branch. Some currency providers also allow you to pick up your funds the next day, or have it delivered within one to three business days. You can even opt for overnight shipping.

International banking apps

If you’re a frequent international traveller, it’s well worth considering downloading an international banking app to manage your money. Many of these apps offer good rates; and make it easier to hold multiple currencies, and transfer money to accounts in different countries.

With a multiple currency account, you can keep money in various currencies, which is useful particularly if you frequently travel to one particular destination. This helps you avoid the volatility of currency exchange rates, since you’ll always have some money ready for your next trip.

Currency exchange kiosks

If you haven’t planned ahead, it can often be tempting to pop into a currency exchange kiosk in a shopping mall abroad, or in a tourist area. While these merchants may offer convenience, their exchange rates are much less favourable than your bank at home. They may also charge higher fees, which are sometimes hidden within the poorer exchange rates they offer.

Hotels and airports

Unfortunately, while hotels and airports may be the most convenient place to change currency, they most definitely aren’t the cheapest. They generally charge some of the highest fees and have the worst exchange rates.

ATMs

Once you’ve reached your destination abroad, your bank's ATM network is likely to be your best option for changing money. You may be able to withdraw cash in the local currency, with competitive exchange rates and low fees (1% to 3%). Look online or use your bank’s app to find the nearest ATM to you.

It’s worth withdrawing larger amounts if your bank charges ATM fees. And try not to use out-of-network ATMs, they may charge foreign transaction fees. Plus, you could end up paying surcharges to your bank and the ATM owner.

The best and cheapest places to exchange currency

• There are better deals to be found at home,  so consider converting your currency before travelling abroad.

• Banks, credit unions, online bureaus, and currency converters offer convenient and often inexpensive currency exchange services.

• Once abroad, the best way to convert currency is to use a foreign automated teller machine (ATM), or identify whether your bank has ATMs or banking affiliates nearby.

• Many credit and debit card issuers allow users to purchase items overseas using their cards without foreign transaction fees

• If you have to go to a foreign exchange kiosk, try negotiating the rates.

The worst places to exchange currency

Here are some of the places you should definitely avoid when you need to change money:

• Airport kiosks and stores - they generally charge some of the highest fees and have the worst exchange rates. But please don’t confuse these with airport ATMs.

• Traveller’s checks and prepaid debit cards are not efficient, and often carry various transaction fees. They also add little benefit, in terms of security, when compared with cash. Prepaid debit cards also come with card fees, foreign transaction costs, and ATM-use charges.

Further tips on exchanging currency while abroad

• Avoid airport kiosks and foreign exchange desks - although exchanging currency at the airport may be convenient, try to avoid doing so, given the outrageously high exchange fees. According to NBC News, airport kiosks can charge up to 20% in fees and have a much lower exchange rate compared to banks and private exchange companies.

• Check your credit cards work internationally. Look into the potential fees that may apply while abroad. These may include: currency exchange fees, transaction fees, or service charges on cash advances. However, there are certain international credit cards that have no foreign transaction fees.

• Be aware that debit cards may charge foreign transaction fees and international ATM fees. Be sure to only use debit cards for cash withdrawals

• Foreign currency cards - these prepaid foreign currency cards work like credit or debit cards. They’re preloaded with a set amount of currency, which is deducted as you use it. However,  fees and restrictions may apply, such as withdrawal and inactivity fees and withdrawal minimums and limits.

• Use local banks - exchanging money at local banks is not only convenient but also much less expensive than exchanging at airports or hotels. They also tend to give decent exchange rates.

• Traveller's checks are not accepted everywhere - unlike cash, traveller's checks come with the added security of being replaced if lost or stolen. However, due to the declining use of traveller's checks, they may not be accepted by some businesses.

• Say ‘yes’ to local currency - avoid hidden transaction and conversion fees by insisting that all purchases are charged in the local currency.

Enjoy low fees on exchange currency rates with WorldRemit

So, now you know the best ways to get the best rates and low fees when exchanging money. And remember, as far as exchange rates are concerned, it’s always worth doing your own research - and make sure you compare rates and fees before exchanging your currency.

To summarise:

• Plan ahead and exchange your currency before travelling.

• Your bank or credit union will usually offer the most inexpensive currency exchange services.

• Once abroad, use automated teller machine (ATM) for better rates.

• Your credit and debit card issuers may allow you to purchase items overseas using your cards without foreign transaction fees.

• Always avoid airport and hotel kiosks.

If you’re sending money abroad, remember that WorldRemit - as well as offering you low fees - will always try and offer better exchange rates which you can find on our calculator.

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Where to exchange currency: FAQs

Do banks still exchange foreign currency?

Yes. In fact, banks offer some of the most reasonable exchange rates and the lowest fees.

Where can I convert foreign currency to U.S dollars?

You can go to a bank, credit union or any number of bureau de changes.

Is it cheaper to exchange money at home or abroad?

One of the best ways to minimise currency exchange fees is to visit your bank or credit union before you leave home, and exchange money there for the currency of your destination.

How can I get the cheapest currency exchange?

Banks and credit unions are usually the best places to exchange currency as they offer reasonable exchange rates, and the lowest fees.

The contents of this blog post does not constitute legal or financial advice and is provided for general information purposes only. If you require specific legal and / or financial advice you should contact a specialist lawyer or financial advisor. Information true at time of publishing.