Where to go for foreign exchange

Where to go for foreign exchange

When preparing for international travel, getting your hands on the right currency is as crucial as packing your passport. But with so many options available, where should you go to get the best deal on foreign exchange? Let's navigate the maze of currency conversion and find out where you can get the most bang for your buck.

Avoid airport exchange desks

As we highlighted in a previous travel money guide, airports are convenient for a last-minute dash, but they're notorious for their less-than-favourable exchange rates. The airport exchange desks are aware that they're your last resort, and unfortunately, they often take advantage of that. "The airport is the worst place to get your foreign currency because you'll be at the mercy of currency sellers who know you have no other options and therefore offer poor exchange rates."

Look beyond 'commission-free' offers

Don't be lured in by the allure of 'commission-free' deals. It's a common marketing tactic used by currency sellers to give the impression of a bargain. However, these deals can be misleading as they may be offset by inflated exchange rates. It's essential to scrutinize the overall cost, not just the absence of commission fees. You should also avoid being swayed by currency sellers who advertise commission-free deals as they may be offering pricier rates to begin with.

Bank on banks? Think again

Many travellers assume that their bank will give them a good deal on foreign exchange, especially if they're long-standing customers. Unfortunately, this isn't always the case. Banks often don't offer preferential rates to their existing customers, so don't expect any special treatment just because you've been loyal. "The truth is that you probably won’t get any preferential treatment."

Promotions and special offers

While banks and building societies might tempt you with promotional rates or commission-free exchanges, they might still not be the best choice. It's worth comparing these offers with those available from bureau de change, travel agents, and the Post Office. Some banks and building societies will occasionally offer promotional rates or commission-free exchange, but that doesn’t mean that they’ll be cheaper than the alternatives.

The power of shopping around

If there's one piece of advice to take away, it's this: shop around. The key to getting the best exchange rate is to compare as many providers as possible. Online foreign exchange companies often boast better rates than what you'd find on the high street, so don't limit your search to physical stores. "The key to getting the best exchange rate is to shop around."

Online orders and delivery options

Considering ordering your travel money online? It's a convenient option, but be aware of potential delivery costs. "However, if you are thinking of ordering your travel money online, find out whether the provider will deliver your currency and whether this will cost you." Some providers offer free home delivery, while others allow in-store pickup or even collection at an airport branch.

Minimum order thresholds

When you're exchanging currency online, keep in mind that some companies require you to exchange a minimum amount of cash. This could influence your decision, especially if you're only looking for a small amount of travel money. "Bear in mind though that some companies have a minimum order threshold before you can exchange your cash."

Calculating the best deal

Ultimately, the best deal comes down to how much currency you'll receive after all fees and charges. When comparing providers, calculate the total amount you'll get in hand. Whichever currency seller offers the most is the one you want. "Whichever currency seller offers the most is the one you want."

By avoiding airport kiosks, looking past misleading 'commission-free' offers, and shopping around—especially online—you can secure the best exchange rates for your travel money. Remember to consider delivery options and minimum order amounts, and always calculate the final amount of currency you'll receive, taking into account all fees and charges. With these tips, you'll be well on your way to making the most of your money abroad. Safe travels and savvy spending!