What is the best place to exchange currency?

Setting off abroad? If you’re planning a trip outside the US, you’ll need some travel money.

There are many ways to spend overseas, including debit and credit cards. But if you need cash for your trip, read on. We’ll look at where to exchange foreign currency without paying huge fees.

You'll also learn about Wise, an easy way to pay and get paid globally. You can send money to 160+ countries using the mid-market exchange rate with no markups.

Option 1: Exchange currency at your bank

Banks aren’t always the best option for transactions involving currency, especially when it comes to international transfers (where the fees can be eye-watering).

But surprisingly, banks and credit unions can be pretty good for exchanging currency. Or at least, some of them can, and usually only for existing customers.

Here are a few of the best US banks for currency exchange, including some info on fees.

When you exchange currency at a bank, you'll pay in two ways: fees and exchange rate markups.

Fees are typically clearly listed, but exchange rate markups are less obvious. Banks add a sneaky markup to the mid-market exchange rate (the real rate you see on Google), usually anywhere between 2-5%.

This means if you're exchanging 1,000 USD to EUR at a 3% markup, you'll get about 30 EUR less than you would at the mid-market rate. So, banks may not always be the best way to exchange currency.

How to exchange currency with a bank

Most major US banks offer foreign currency exchange services for both customers and non-customers.

Non-customers will most likely need to visit a branch, but account holders usually have more options, including ordering their foreign currency online. Non-customers may also have to pay higher fees.

Here's how to order foreign currency from your bank:

1. Figure out how much foreign currency you need: It's usually cheaper to make fewer, larger orders than multiple small ones
2. Place your order online or in person: Most banks let account holders order online or over the phone, but non-customers will need to visit a branch
3. Choose your delivery method: You can typically get your currency delivered to your home or pick it up at a local branch. Home delivery likely comes with extra fees

Most foreign currency orders take a few business days to process and deliver. But if you're ordering a common currency like EUR or MXN, some branches may have it available for immediate pickup.

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Option 2: Use a foreign currency exchange service

Another option is to use a foreign currency exchange website, such as Currency Exchange International (CXI) or US First Exchange.

These services have user-friendly platforms where you can order foreign currency for delivery. It tends to be pretty quick and easy.

However, ordering currency online is likely to include delivery charges. Plus, the exchange rate won’t be as good as with your bank or another provider like Wise that uses mid-market exchange rates. There might also be an upfront fee.

Option 3: Use an ATM at your destination

The options above are for exchanging currency before you go, which some travelers may prefer. But if you’re fine to wait until you arrive at your destination, there’s another decent option for getting your hands on some local currency.

If you have the right card, you can simply withdraw cash at an overseas ATM. But to avoid high fees, there are a few crucial things to remember:

Where to avoid exchanging currency

It’s up to you which method you use to buy your travel money. There's no one best place to exchange currency. But one option you should definitely avoid is exchanging currency at airports, hotels, and foreign exchange stores in tourist areas overseas.

These places are all convenient places to get your hands on euros, pounds, or whatever the local currency is. However, you’re likely to pay a premium for it.

Commission fees can be high and exchange rates unfavorable. So, it’s worth avoiding it unless you’re really stuck.

Where to exchange currency FAQs

Is it better to get euros in a US bank or in Europe?

It’s usually better to get your euros at your bank, provided it offers foreign currency for low or no fees. However, you can also withdraw EUR at overseas ATMs, as long as your card doesn’t have foreign transaction fees.

Do US post offices exchange currency?

No, you can send international money orders at a US Post Office, but you can’t exchange currency over the counter. There's no Post Office currency exchange.

Do banks still exchange foreign currency?

Yes, but it depends on the bank. The options we’ve listed in this article, such as Bank of America, Citibank, PNC Bank, US Bank, and Wells Fargo, still exchange foreign currency.

Where can I get the best currency exchange rate?

Banks, foreign currency exchange services, and ATMs at your destination are all solid ways to get foreign currency, but it all ultimately depends on your bank and debit or credit card provider.

That said, all of these options will add an exchange rate markup to your transaction. Use Wise to avoid these markups.

If you've been wondering where to exchange foreign currency, you've got options. You can get cash at a bank or credit union, use a foreign currency exchange service, or simply take cash out using an ATM at your destination.

Just make sure to avoid buying foreign currency at airport kiosks, hotels, and other tourist centers - these transactions will come with high fees.

Use Wise to spend like a local with low fees and no exchange rate markups. One simple account allows you to convert to 40+ currencies in just a tap.