How to Get the Best Exchange Rate When Travelling

Getting a good exchange rate when you travel is genuinely worth thinking about. On a two-week holiday spending $3,000 in foreign currency, the difference between a 3% spread and a 1% spread is around $60 — which is another dinner out. On a longer trip or a larger transfer, the numbers get more significant quickly.

The good news is that the best options are accessible to almost everyone. The bad news is that the most convenient ones — the exchange booths at the airport, the counter at your hotel — are almost always the worst.

Airport exchange booths: convenient and expensive

Airport currency exchange booths are the most expensive way to buy foreign currency, full stop. Their rates are typically 7–12% worse than the mid-market rate, and they rely on the fact that most people arriving at an airport either need cash urgently or haven't done the maths. Signs advertising "0% commission" are technically accurate — they just bury the entire cost in the exchange rate instead.

If you land and urgently need local currency, use an airport ATM rather than a bureau de change. ATMs typically offer better rates than exchange counters, though you'll want to be careful about the one trap they set (see below).

ATMs abroad: usually your best bet for cash

Withdrawing cash from a local ATM in your destination country is generally one of the best ways to get foreign currency. Your home bank or card provider converts the amount at a rate close to the mid-market rate, often with a small fixed or percentage fee on top.

The critical thing to watch for is dynamic currency conversion (DCC). When you insert your card, the ATM will sometimes ask whether you want to be charged in the local currency or in your home currency. Always choose the local currency. If you choose your home currency, the ATM operator performs the conversion at their own rate — which is typically much worse than your card provider's rate. The question is framed as a helpful option; it's actually a way to extract more money from you.

Also check your card's international withdrawal fee before you travel. Some banks charge a flat fee of $3–5 per withdrawal plus a percentage fee. If that's the case, making one larger withdrawal is more cost-effective than several smaller ones.

Travel money cards and multi-currency accounts

Dedicated travel money cards and multi-currency accounts (Wise, Revolut, and similar services) have changed the game significantly over the past decade. Many of them convert at or very close to the mid-market rate, with a transparent fee structure. Some allow you to hold multiple currencies simultaneously, so you can convert at a time when the rate suits you rather than scrambling at the airport.

These services are particularly good for people who travel frequently or who spend significant amounts abroad. Setting one up takes 10–15 minutes and the savings over a longer trip can be substantial. The main consideration is that you need internet access and some forward planning — they're not a last-minute solution.

Ordering cash in advance from your bank

Most banks allow you to order foreign currency online or in-branch for collection. The rates are typically better than airport booths but worse than ATMs or travel cards — usually 2–4% from the mid-market rate. The advantage is certainty: you know exactly how much foreign cash you'll have before you leave, which is useful if you're going somewhere with limited ATM coverage or where cash is heavily preferred.

Currency specialists (companies that focus specifically on foreign exchange) often offer better rates than high street banks for cash orders, particularly for larger amounts. It's worth comparing both before you commit.

Credit cards with no foreign transaction fees

If you're spending abroad on a card rather than using cash, a credit card with no foreign transaction fee is one of the simplest tools available. Many travel-focused credit cards convert at the Visa or Mastercard network rate (which tracks the mid-market rate closely) without adding a transaction surcharge. Some also earn points or rewards on overseas spending.

The catch is that you still need to decline dynamic currency conversion at point of sale — some merchants abroad will ask whether you want to pay in local currency or your home currency, just like ATMs. Always choose local currency.

What to avoid

Hotel exchange counters are almost always worse than bank ATMs — avoid them unless you're desperate. Peer-to-peer currency swaps (sometimes suggested in travel forums, where you find a local traveller going the other way and swap cash with them) carry obvious safety and trust risks. Pre-paid travel cards sold at supermarkets sometimes carry loading fees and poor rates — read the full fee schedule before buying.

The general rule: the more captive you are as a customer — at an airport, in a hotel, at a theme park — the worse the rate is going to be. The more you plan ahead and use competitive services, the better.

Rates shown on CurrencyConverter247 are mid-market reference rates for informational purposes only. They do not represent rates available from banks, exchange bureaux, or card providers. Always confirm fees and rates with your provider before travelling.