# Cheapest way to exchange currency? **URL:** \ **Category:** Factual Questions\ **Created:** [August 23, 2005, 5:40pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292 "2005-08-23T17:40:20Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [August 23, 2005, 5:40pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/1 "2005-08-23T17:40:20Z")
I need to get £500 for an upcoming trip to London. My bank will do it for $15. I was wondering if anyone knows a cheaper way to do it. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [August 23, 2005, 5:41pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/2 "2005-08-23T17:41:53Z")
Put your money in the bank and take it out from an ATM once you get there. ---
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [August 23, 2005, 5:47pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/3 "2005-08-23T17:47:32Z")
Yeah but the services charges on withdrawals can really add up. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [August 23, 2005, 5:54pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/4 "2005-08-23T17:54:03Z")
> [@Hypno-Toad](#): > > Yeah but the services charges on withdrawals can really add up. Well, it could be a little cheaper depending on the banks and number of withdrawals involved. You could see about using your ATM card as a credit card. My ATM card simply debits my bank account for no fee if I use it as a credit card. ---
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [August 23, 2005, 6:06pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/5 "2005-08-23T18:06:47Z")
Yeah, I will be using my Debit card for most purchases since it is usually easier than cash anyway. But it can’t hurt to have some folding and clinking currency as well. ---
**Author:** ![guizot](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/guizot/32/3636_2.png) [@guizot](https://boards.straightdope.com/u/guizot)\ **Post date:** [August 23, 2005, 7:12pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/6 "2005-08-23T19:12:10Z")
> [@Hypno-Toad](#): > > Yeah but the services charges on withdrawals can really add up. If your bank doesn’t have ATMs in London, you might want to open an account with Citi or some other bank that does. I believe that’s the best rate you can get on currencies abroad. YMMV. ---
**Author:** ![Rayne\_Man](https://avatars.discourse-cdn.com/v4/letter/r/df705f/32.png) [@Rayne\_Man](https://boards.straightdope.com/u/Rayne_Man)\ **Post date:** [August 23, 2005, 7:46pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/7 "2005-08-23T19:46:51Z")
I thought most cards could be used in most ATMs worldwide. There are such networks as _Plus_ _LINK_ and\* Cirrus\* which allows you to use ATMs belonging to any bank. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [August 23, 2005, 7:52pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/8 "2005-08-23T19:52:37Z")
> [@Rayne Man](#): > > I thought most cards could be used in most ATMs worldwide. There are such networks as _Plus_ _LINK_ and\* Cirrus\* which allows you to use ATMs belonging to any bank. Most cards would work. However, out hero in this story is trying to beat the $15 that the bank would charge to convert it as cash before he leaves. The withdrawal fees from other bank ATM’s would cost coin. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [August 23, 2005, 8:00pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/9 "2005-08-23T20:00:20Z")
> [@Hypno-Toad](#): > > I need to get £500 for an upcoming trip to London. My bank will do it for $15. I was wondering if anyone knows a cheaper way to do it. At current exchange rates that’s about 3%. That’s not bad. Some exchanges will not quote rates but if you look at the effective exchange rate vs. the market there’s a fee built in. The conventional wisdom is that you wil get the best rate by exchanging currency in that country rather than here before you go. I cannot cite figures. ---
**Author:** ![Hypno-Toad](https://avatars.discourse-cdn.com/v4/letter/h/b2d939/32.png) [@Hypno-Toad](https://boards.straightdope.com/u/Hypno-Toad)\ **Post date:** [August 23, 2005, 8:21pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/10 "2005-08-23T20:21:15Z")
Interesting answers. I shall take them into account. Thanks. ---
**Author:** ![Rayne\_Man](https://avatars.discourse-cdn.com/v4/letter/r/df705f/32.png) [@Rayne\_Man](https://boards.straightdope.com/u/Rayne_Man)\ **Post date:** [August 23, 2005, 8:31pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/11 "2005-08-23T20:31:43Z")
There are two things to take into account when exchanging money. Not only the commission but also the rate of exchange on offer. Sometimes you will see a sign saying “commission free” but what you will find is that you will get a poorer rate of exchange. So both sums have to be factored into the equation. ---
**Author:** ![mhendo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mhendo/32/3159_2.png) [@mhendo](https://boards.straightdope.com/u/mhendo)\ **Post date:** [August 23, 2005, 8:35pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/12 "2005-08-23T20:35:56Z")
> [@Hypno-Toad](#): > > Yeah but the services charges on withdrawals can really add up. Well, i don’t know about the UK, but when i made a visit home to Australia a couple of years ago, i was pleasantly surprised to find that my bank (Bank of America) apparently has an arrangement with an Australian bank (St. George) that allowed me to withdraw funds from St. George ATMS with no fee. ---
**Author:** ![clairobscur](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clairobscur](https://boards.straightdope.com/u/clairobscur)\ **Post date:** [August 23, 2005, 9:36pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/13 "2005-08-23T21:36:18Z")
> [@Shagnasty](#): > > Most cards would work. However, out hero in this story is trying to beat the $15 that the bank would charge to convert it . Yes, but that would be the fee only. What exchange rate does its bank offer? Exchanging cash is generally never cheaper than using an ATM. ---
**Author:** ![clairobscur](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clairobscur](https://boards.straightdope.com/u/clairobscur)\ **Post date:** [August 23, 2005, 9:44pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/14 "2005-08-23T21:44:56Z")
The OP should ask its bank what fees it add to ATM withdrawals in foreign countries (might be a fixed amount per transaction, or a %age). European banks usually aren’t allowed to add a charge when you use their ATMs. I think it’s the case in the UK. He should also ask its bank what is its exchange rate and compare it to the interbank’s exchange rate. It’s on the exchange rate that banks and change bureau make money (which often allow them to display proudly : “NO FEES!!”). VISA (and I suppose other networks like PLUS, etc… add 1% to the base exchange rate. As I mentionned above, your bank can add some percent on top on that for…err…for doing nothing, since the currency conversion has already been done. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [August 23, 2005, 10:16pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/15 "2005-08-23T22:16:16Z")
> [@CookingWithGas](#): > > At current exchange rates that’s about 3%. That’s not bad. . Since the pound is currently about $1.80 US, that is about 1.6%. The only way you might get better is if you get free traveler’s checks in the US, and exchange them for pounds at a big bank in London. Even then, I doubt that you will beat the $15 you’ve been quoted. You’re chasing your tail. ---
**Author:** ![TokyoBayer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tokyobayer/32/13989_2.png) [@TokyoBayer](https://boards.straightdope.com/u/TokyoBayer)\ **Post date:** [August 24, 2005, 12:52am UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/16 "2005-08-24T00:52:28Z")
> [@Rayne Man](#): > > There are two things to take into account when exchanging money. Not only the commission but also the rate of exchange on offer. Sometimes you will see a sign saying “commission free” but what you will find is that you will get a poorer rate of exchange. So both sums have to be factored into the equation. A good rule of thumb is to go to the exchange places and airports, and keep walking by! Terrible rates, but a chearful sign “Commission Free.” I actually used those to my advantage in a previous job. We had to supply documentation for the exchange rate to calculate cash expenses, and since I had exchanged $20 there, I’d use that rate. 😃 ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [August 24, 2005, 1:09am UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/17 "2005-08-24T01:09:16Z")
> [@TokyoPlayer](#): > > A good rule of thumb is to go to the exchange places and airports, and keep walking by! Terrible rates, but a chearful sign “Commission Free.” I actually used those to my advantage in a previous job. We had to supply documentation for the exchange rate to calculate cash expenses, and since I had exchanged $20 there, I’d use that rate. 😃 Expense report fraud for fun and profit! ---
**Author:** ![TokyoBayer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tokyobayer/32/13989_2.png) [@TokyoBayer](https://boards.straightdope.com/u/TokyoBayer)\ **Post date:** [August 24, 2005, 5:16am UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/18 "2005-08-24T05:16:34Z")
If if it actually made more than $20 difference, it may have been worth it. 😛 ---
**Author:** ![TellMeI\_mNotCrazy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tellmei_mnotcrazy/32/3419_2.png) [@TellMeI\_mNotCrazy](https://boards.straightdope.com/u/TellMeI_mNotCrazy)\ **Post date:** [August 24, 2005, 7:00am UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/19 "2005-08-24T07:00:49Z")
When I was in London I exchanged my money at Thomas Cook with a guaranteed buy-back rate. I saved my receipt and turned in whatever unused money I had at the end of the trip, which they exchanged for the same rate that it was when I came into the country. Granted, the drop wasn’t very big, but it was enough to make a few dollars difference over what I would have gotten had I simply re-exchanged at that day’s market rates. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [August 24, 2005, 4:42pm UTC](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292/20 "2005-08-24T16:42:30Z")
> [@samclem](#): > > Since the pound is currently about $1.80 US, that is about 1.6%. My mistake, 3% wouldn’t have been bad but you probably won’t do better than 1.6%. [Next page](https://boards.straightdope.com/t/cheapest-way-to-exchange-currency/318292.md?page=2)