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| | ROOT OF ALL EVIL Why is it that, when I check exchange rates online, the rates are far better than those in travel shops? Is it possible to buy currency at the online rates and, if so, how? John A Grummitt, Chiryu Japan - The rates you see on the internet are probably - like those quoted in newspapers - the interbank exchange rates. These numbers are taken from international currency exchange markets that, like share prices, go up and down over the course of a day's trading.
While banks and other institutions (and probably some private individuals, though not mere mortals like you or I) can purchase other currencies at these rates on the open market, the average traveller must purchase them from intermediaries - banks, travel agencies and so forth. It is a common misconsception that you 'exchange' money at these places - you are buying money from them, and like any product sold it must make a profit. On top of any commission or service fee, such intermediaries also 'tweak' the rates in their favour which is why you will never get the same rates at Thomas Cook that you see in the papers. Bear this in mind the next time you hear about banks complaining of the costs of changing to the Euro! Michael, Kaohsiung Taiwan
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| FAQs
The Best Exchange Rates can be Found Online
Online travel money providers offer the best exchange rates of all because they have lower overheads than high street shops and can afford to be a bit more generous with their rates. A comparison website can help you to the best deals by scouring the market for you.
Where can I find the most accurate exchange rates? ›
The Treasury Reporting Rates of Exchange dataset provides the U.S. government's authoritative foreign currency exchange rates for federal agencies to consistently report U.S. dollar equivalents.
Are airport currency exchanges a rip-off? ›
Currency exchange shops and kiosks in airports are not the best places to exchange money. For the best rates, try a local bank or a bank ATM to make your currency exchanges. Check to see if your U.S. bank offers foreign ATM fee refunds for using a foreign ATM. Not all currency exchanges charge the same rate.
Where can I get the best currency exchange rate? ›
Banks, credit unions, online bureaus, and currency converters provide convenient and often inexpensive currency exchange services. Once on foreign soil, the best means to convert currency is to use a foreign automated teller machine (ATM) or identify whether your bank has ATMs or banking affiliates nearby.
How do I get the cheapest exchange rate? ›
Best place to exchange currency: Your bank or credit union
Many banks offer currency exchange to their customers. Though there may be a small fee if you exchange less than a certain amount, your bank or credit union will almost always be the cheapest place to exchange currency.
Which bank gives the best currency exchange rates? ›
Look under the TT BUY and TT SELL COLUMN. Out of all the banks in India and exchange providers like bookmyforex, Indian Overseas bank provides the best forex rates. Canara Bank is a close second.
Where can I get an accurate exchange rate? ›
OANDA's Currency Converter allows you to check the latest foreign exchange average bid/ask rates and convert all major world currencies. OANDA Rates™ are foreign exchange rates compiled from leading market data contributors.
Who gives the best US exchange rate? ›
1. Banks trade at the real rate. When exchanging US dollar between themselves, banks and transfer services use the mid-market rate (also known as the interbank rate). It's the fairest possible rate.
What is the most reliable source of exchange rates? ›
Xe Currency Charts
These currency charts use live mid-market rates, are easy to use, and are very reliable.
Is it cheaper to get euros in the US or in Europe? ›
With time at your disposal, you'll be able to see exactly what the fee and rate is, and how many euros you'll get for your dollars. It's possible of course that you might get a better deal when you land in Europe. It may well be the case that fees are lower and exchange rates better.
Avoid (or at least minimize) cash exchange.
Exchanging money is expensive: You'll lose about 5 to 10 percent when converting dollars to euros or another foreign currency. In a pinch, you can find exchange desks at major train stations or airports (convenient, but the hit can be as much as 15 percent).
Is it better to exchange money before or after flight? ›
Ordering currency from your bank before you travel is almost always better than using the airport currency exchange. Sally French is a travel rewards expert who joined NerdWallet in 2020.
What's the best day of the week to exchange money? ›
Typically, the least busy times of the week are Mondays, mid-week and the weekend (excluding Friday). These days have the lowest number of transfers in the week, so you might expect to see less fluctuation in the mid-market rate.
What country has the highest exchange rate with the US dollar? ›
The Kuwaiti dinar is the strongest currency in the world, with 1 dinar buying 3.26 dollars (or, put another way, $1 equals 0.31 Kuwaiti dinar).
What is the strongest currency exchange rate in the world? ›
The highest-valued currency in the world is the Kuwaiti Dinar (KWD). Since it was first introduced in 1960, the Kuwaiti dinar has consistently ranked as the world's most valuable currency.
Is it better to pay in local currency online? ›
Using a credit card with no foreign transaction fees and choosing to make purchases in local currency will nearly always save you money. Currency conversion apps can help you better understand pricing and identify hidden charges.
How can I get better exchange rates? ›
Travel agents often offer more competitive rates. And the Post Office is worth checking. But you are almost certain to get a better deal if you shop around online through companies such as Travelex and Moneycorp, and pick up the foreign currency at an airport or ferry port.
Is it better to exchange currency at home or abroad? ›
If you don't have time to get cash at the bank before your trip, it can be tempting to get foreign currency at an airport kiosk or currency exchange counter. These merchants offer convenience, but their exchange rates are typically much less favorable than your bank at home.
Is it safe to exchange currency online? ›
Is it safe to order foreign currency online? Yes.
