Where to Exchange Currency Without Paying Huge Fees

If you’re planning a trip abroad, now is the time to consider exchanging your money for the local currency of your destination. This allows you to comfortably pay for purchases during an international trip, as well as save on exchanging money in a foreign country.

Asking yourself, "Where can I exchange currency?" Keep reading to learn everything you should know about converting money into foreign currencies, like understanding exchange fees, the best places to exchange currency, and tips and tricks for minimizing fees.

Understanding Currency Exchange Fees

When it comes to currency exchange, fees are an integral part of the money conversion process, and your task is to find the best terms and lowest fees. Commissions are fees that banks or offices charge clients for the services of transferring one currency to another. This is primarily due to the high-risk nature of the market — exchange points depend on changes in rates, and they risk losing money. And the commissions they charge should be perceived as a kind of compensation for these risks.

In addition, institutions that carry out currency conversion have huge costs associated with the availability of the necessary technological base, tools, security systems, and so on. Last but not least, offices and banks are businesses, and the goal of every business is to make a profit. Commissions here are simply a way to earn money from the services provided.

There are usually two types of currency conversion fees involved:

• Spread: The difference between the buying (bid) price and the selling (ask) price of a currency. Currency exchange providers make a profit from this spread by buying currency at a lower price and selling it at a higher price.
• Percentage-Based Fees: A certain percentage of the total amount being exchanged. This type of commission is often seen with online services or credit card transactions involving foreign currencies.

So, since exchange rates fluctuate and fees vary from place to place, you should find the best place to convert currency and make sure you’re getting as much foreign currency as possible for the same amount of money.

Best Places to Exchange Currency

Where can I exchange foreign currency on the best terms and with the lowest fees? Here is our pick of top places to convert currency — find your best option.

Banks and Credit Unions

Perhaps the best way to get a good exchange rate and minimize conversion fees is to visit a bank or credit union before your trip. Although banks are not always the best option for transactions, when it comes to exchange, they are a truly excellent solution. You can find a huge number of currencies available at large banks, and what’s more, you can expect to exchange without paying any additional fees beyond the exchange rate.

To find the best terms, you can use reliable rate monitoring resources. This allows you to determine current exchange rates and know what to expect when comparing rates between different banks and credit unions.

You can order the foreign currency you need in the required quantity directly at a physical branch, online, or by phone. The speed of processing your request and delivery of cash depends on the conditions of the bank and the chosen currency — in general, the conversion can be carried out either on the same day or within several days. When choosing to exchange foreign currency with banks or credit unions, you can be sure that the terms offered are legal and transparent.

Online Platforms

Online converters are another popular, fast, and convenient way to exchange foreign money. Such platforms allow you to request foreign currency via the Internet and receive cash delivered to your home or on your online account. Although this method is relatively inexpensive, it loses out on the benefits of banks and credit unions — rates are not as attractive and delivery charges extra money.

ATMs Abroad

If you still need to convert money overseas, then the best solution is to use ATMs. And to minimize fees, look for your financial institution’s ATMs — this will be the best option to get a favorable rate. To find the nearest ATM, you can use your bank’s app.

If there are no ATMs in your bank’s network, you can consider local foreign ATMs, but be prepared to pay additional fees. Also, remember that when withdrawing cash from an ATM, you must select the local currency to pay less money for conversion. Be sure to check the fees charged by the ATM before confirming that you want to withdraw money from your debit or credit card.

Kiosks and Offices

If you have not exchanged currency in your home country, you can do so in your destination country at local kiosks. However, in this case, you should not hope for favorable conditions and attractive offers. And if you are still wondering where to exchange currency, then the main piece of advice here is to avoid points in hotels, airports, and tourist locations — in such places, you will get the worst exchange rates and the highest commissions.

In general, currency exchange kiosks and offices should be used only as a last resort because, despite their convenience, you will lose more money than when using other methods.

How to Minimize Fees

• Contact your bank before the trip. You can contact your bank representative to discuss whether foreign transaction fees apply to your card or account type. Many banks offer free foreign currency exchange — if necessary, you can apply for a card that does not charge foreign currency transaction fees.
• Choose where to exchange money beforehand. When choosing points where to convert currency, try not to resort to exchanging at airports, hotels, tourist locations, and so on — commissions in such places are very high, and exchange rates are unfavorable.
• Consider alternatives to exchanging currency. Converting your money into the local currency of your destination country is not always the best solution. If you haven’t exchanged money in advance, you can simply pay with your card for purchases abroad and avoid exchange fees.

Remember that the best options regarding where to exchange foreign currency for U.S. dollars and vice versa are tied to your bank’s network, so your best bet is to plan your currency exchange in advance.