Best places to exchange currency without paying huge fees

Planning a trip and wondering, "Where can I exchange foreign currency?". Then this guide is for you. There are a few different ways to get currency exchange, including both before and after you travel overseas. We'll cover the key options in this article.

You can also use Wise to manage money across borders with one simple account. You can convert to 40+ currencies in just a tap at the fair mid-market exchange rate.

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Table of contents
What are exchange fees? How to avoid currency exchange fees Where to exchange currency for low fees Exchange money in just a few clicks with Wise Where can you get foreign currency when traveling? Where to exchange currency for low fees FAQs

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What are exchange fees?

When you exchange money, you're likely not getting the exchange rate you see on Google. That rate is called the mid-market rate - it's what banks use when trading large amounts of currency with each other. Unfortunately, regular travelers typically don't get this rate.

Instead, currency exchange providers make money in two ways. First, they add a markup to the exchange rate. For example, if the real rate is 1 USD = 0.85 EUR, they might offer you 0.80 EUR instead.

These hidden fees can add up quickly - even if you're using a bank that does free currency exchange.

Second, some currency exchange providers might charge explicit fees (in addition to the exchange rate markup):

• Commission fees: A percentage of the amount you're exchanging
• Service fees: A flat fee for handling the transaction
• Foreign transaction fees: Extra charges when using your credit card abroad
• Minimum fees: A set amount you'll pay regardless of how much you exchange
• Delivery fees: If you're ordering currency for home delivery, but sometimes even if you're picking up your currency at your bank or credit union

Some providers advertise "zero fees" but make up for it with a worse exchange rate. Others charge upfront fees but offer better rates. Make sure to understand the total cost, not just the explicit fees.

How to avoid currency exchange fees

Generally speaking, you can't completely avoid fees when exchanging currency, but you can minimize them. Here's how to get the best deal on your foreign currency:

• Compare to the mid-market rate: Check the mid-market rate on Google before exchanging money. This helps you spot bad deals and excessive markups

• Avoid tourist traps: Skip currency exchange at airports, hotels, and popular tourist areas. These locations usually offer the worst rates because they're counting on tired travelers seeking convenience

• Get a travel-friendly card: Some banks and credit card providers offer relatively good market exchange rates with no foreign transaction fees. But they still typically make some money on the currency exchange

• Order currency in advance: If you need cash, ordering from your bank before your trip usually gets you better rates than exchanging on the spot (especially in tourist centers)

• Avoid dynamic currency conversion: When paying by card abroad, always choose to pay in the local currency, not your home currency

The most expensive option is getting caught without a plan and having to exchange money at the first place you find. So, proactively figuring out where to exchange currency can save you a lot of money, especially on longer trips or if you need to get a large amount.

Where to exchange currency for low fees

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Bank or credit union

Many regular banks and credit unions offer travel money services to their customers. You may be able to convert major currencies on the spot - but for more unusual currencies, or high-value transactions, you’ll probably have to call ahead to ensure the branch has the currency you need.

Exchanging money at your bank can be a handy option if the service is available - but the exchange rate you’re offered is likely to include a markup - an extra fee - on top of any commission charged.

Banks also often charge extra processing or delivery fees. Here's some examples:

Bank	Fees
Bank of America¹	7.50 USD delivery fee for orders under 1,000 USD
Citibank²	5 USD service fee on orders under 1,000 USD (free for Citigold/Priority) 10 to 20 USD for home delivery (waived for Citigold/Priority)
US Bank³	10 USD fee for transactions under or equal to 300 USD

Online bureaus & currency converters

Specialist online currency conversion services allow you to buy your local currency before your trip. Pay with a transfer from a savings account or checking account, or using a credit or debit card, and the currency can then be collected from an agent location or courier delivered to your home address for safety.

Online bureaus are often cheaper than using an airport kiosk, as it’s a more competitive market. However, exchange rates are still likely to include a markup, which can push up the overall cost.

For example, Currency Exchange International, promises to "match or beat the exchange rate given by a local bank or airport for the same foreign currency (cash) and service on the same day."⁴

So, while you won't get a higher rate than at your bank, you may not get a lower one either.

Exchange money in just a few clicks with Wise

Wise can help you get a better deal on currency conversion in over 40 currencies, with the mid-market exchange rate and low fees from 0.41%.

Open a free personal Wise account online or in the Wise app, and order a linked debit card for spending and withdrawals in 150+ countries.

There’s no fee to spend any currency you hold, and no foreign transaction fee to worry about.

Use your account when you travel or shop online in foreign currencies, send payments to 50+ currencies, and get your own local account details to get paid from 160+ countries.

Say goodbye to overcomplicated currency exchange.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Where can you get foreign currency when traveling?

Arranging your foreign currency before you leave the US isn’t right for everyone.

If you’d rather wait until you arrive to get your foreign currency, you might consider using ATMs, foreign bank branches, credit/debit cards, or prepaid debit cards. Here's everything you need to know.

ATMs

Using ATMs abroad can be a convenient way to get local currency. Most ATMs accept major card networks like Visa and Mastercard, and you'll usually get better exchange rates than at currency exchange offices.

But watch out for fees. Your home bank might charge foreign ATM fees and foreign transaction fees, plus the ATM might charge its own fee as well. To minimize these costs, use ATMs affiliated with major banks (ideally, your home bank) rather than standalone ATMs in tourist areas.

💡 Learn more about how to avoid international ATM fees in our full guide.

Foreign bank branches

You can exchange currency at local bank branches, especially if you need larger amounts than an ATM will dispense. You'll typically find better rates than at airport kiosks and other tourist spots this way.

Make sure to bring your passport - most banks require it for currency exchange - and ask about fees upfront.

Credit/debit cards

Using your debit or credit card to spend can be a smart choice as long as you keep an eye on the fees and find a card with a low foreign transaction fee.

You’ll also want to pay in local currency to avoid Dynamic Currency Conversion (DCC). Using a credit card to make ATM withdrawals isn’t usually a good idea due to cash advance fees and interest charges.

Prepaid debit cards

Another option is to use prepaid international debit cards. There are many different cards out there that allow you to top up your balance in dollars and then make ATM withdrawals or payments in a foreign currency when you arrive.

Prepaid cards have the advantage of being separate from your main bank account - so even if your card is lost or stolen, thieves can’t access the bulk of your money. However, they also often come with high costs, including top-up charges and inactivity fees - check the terms and conditions carefully if you’re considering one.

Where to exchange currency for low fees FAQs

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Where is it cheapest to exchange currency?

If you need physical cash, your home bank is usually the best option - just remember to order the currency a few days before your trip to avoid rush delivery fees. You can also use Wise for easy online currency exchange with no exchange rate markups.

Is it better to exchange money at the bank or money exchange?

Banks usually offer better rates than money exchange offices, especially in tourist areas. Some money exchanges advertise "no fees," but they make a profit with much worse exchange rates. Banks tend to be more transparent about their fees, but there's still usually a markup.

Which bank doesn't charge for currency exchange?

Most banks charge something for currency exchange, either through fees or exchange rate markups. But some offer better deals than others. For example, Bank of America doesn't charge a delivery fee for orders over 1,000 USD.¹

What can I do with leftover foreign currency?

There are a couple of practical options for unused foreign currency. You can save it for future trips to the same country or exchange it back for USD (though you'll lose money on the double conversion).

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There's no single best place to exchange currency for your trip, but you can exchange your currency before you leave the US at your bank or credit union as well as through an online exchange bureau.

Or you could sort out your travel money when you arrive, but make sure to avoid tourist traps like airport kiosks. Instead, use ATMs, foreign bank branches, credit/debit cards, or prepaid debit cards.

To convert to 40+ currencies in just a tap with no exchange rate markups, use Wise.

Sources

1. Bank of America - Placing a foreign currency order FAQ
2. Citibank - Foreign currency exchange services
3. US Bank - Is there a fee to order foreign currency?
4. Currency Exchange International - Foreign currency exchange

Sources checked 12.20.2024