Is It Better to Exchange Currency at Home or Abroad? - Pangea (2024)

FAQs

Is It Better to Exchange Currency at Home or Abroad? - Pangea? ›

When it comes to getting the lowest exchange rate, your local bank is a great place to exchange money before a trip. You may have to plan ahead, as some local bank locations don't necessarily have every global currency

Consider currency conversion options at local banks - If you need to exchange currency while abroad, consider visiting local banks in the destination country. Local banks often offer competitive rates and may have lower fees compared to exchange offices or other establishments catering primarily to tourists.

Research shows that in most cases you can save by opting to spend in the local currency. For example, that would mean choosing euros in Spain or dollars in the US. When you choose to pay in the currency of the region or country you're visiting, Visa or Mastercard will set the exchange rate.

Order Foreign Currency Before You Go. 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.

Head to your bank or credit union before you leave to avoid paying ATM transaction costs. You may even receive a better exchange rate. Credit unions and banks will exchange your dollars into a foreign currency before and after your trip when you have a checking or savings account with them.

If you do want to wait until you arrive in Europe to get your euros, a word of caution. It's not usually a good idea to exchange currency at the airport, or even at your hotel. These places are definitely convenient, but you're likely to pay a premium for it. Commission fees can be high and exchange rates unfavorable.

There's a lot that you can buy with a credit card in Europe, so bring at least one. But don't expect to get very far without a little cash, too—especially if you're a tourist. Transportation services, such as taxis and buses, often require local currency.

How to avoid transaction fees abroad? ›

Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash.

Exchanging currency abroad can sometimes get you better rates because local exchange offices are more likely to offer competitive rates, especially in tourist-heavy areas. This is always a better option especially when you are travelling to a country for tourist purposes.

A good rule of thumb, though, is that, on average, you should plan to carry between $50 and $100 per day in the currency of the country in which you're travelling. As with all things, research is your friend here. Understand where you're travelling and what the local customs regarding cash are.

The forex market runs on the normal business hours of four different parts of the world and their respective time zones. The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.

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. You may be able to order currency at a branch location, by phone, or online to have it delivered to you or to pick up at a branch.

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.

Because they're owned by banks, ATMs usually offer the most current exchange rate and feature fees that are lower than an airport or currency exchange.

No. Very few places in Europe take US dollars and those that do will usually give you a lousy exchange rate. Take Euros before you travel, or better still, use a chip and PIN card to draw cash from an ATM locally if you require cash. Most places in Europe already accept contactless or chip and PIN for payment.

Is it better to travel to Europe when the dollar is strong? ›

Tips to save on travel while the US dollar is strong

That European getaway doesn't have to break the bank. A strong US dollar means your buck is likely to go further when you pay for goods and services in other countries. Here are some tips that could help you save. Prepay hotels, tours, tickets.

While there are some situations where it may make sense to use DCCs, it's usually better to pay in the local currency – especially if you use a credit card that doesn't charge foreign transaction fees.

Mondays often experience the lowest number of trading in foreign exchange market. Therefore, you may expect the least fluctuation in price. Friday has a definite effect which is called the summary effect. There are many traders who close their positions at the end of the week.

A Bank of America International Transaction Fee of 3% will apply when converting your currency.