Cheapest Ways to Buy Foreign Currency

Money

One of the things I really advise you do before the start of any international trip is buy some currency for the country you’re visiting.

It really helps to have a bit of local money when you arrive in a destination. For example, you may need to pay for some food or transport before you can get to an ATM or bank.

However, as with all things with travel, there are some ways to buy foreign currency that are cheaper than others.

Here at BWSP, I’m always keeping a keen eye on budgeting, to help you (and me!) travel more, but spend less. As such, I’ve been scouting out ways to buy foreign currency that might help in getting more bang for your buck.

Normally when buying foreign currency, saving money manifests as a better exchange rate, but commissions and any relevant administrative charges also make a significant difference.

My cheapest ways to buy foreign currency list strongly takes these factors into account, but also considers the issues around ease and security of buying travel money.

There are some more traditional ways to get foreign currency here, but also some fairly new exciting methods too, including some you may not have heard of.


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#1 Banks

Money

Most branch banks that you have an account with will provide you with a foreign exchange service as part of your custom.

Exchange rates tend to be good, but banks often charge commission making the costs slightly higher.

Do be aware that banks may not have the currency you require in stock, so it’s best to start trying to buy your foreign currency about 2 weeks in advance.

Normally the money is drawn straight from your account electronically and you are then given the corresponding foreign currency in cash.

 

#2 Post Office

Throughout the UK and Australia, post offices provide competitive foreign currency services.

Their rates usually rival those of banks, but often they don’t charge commission, which makes them slightly cheaper.

When I travelled to the UK from Australia recently we used the local post office Travel Money service to get some British pounds.

I had to order the money 5 working days in advance, but the process was quick and easy.

I paid electronically via a card and then received the corresponding foreign currency in cash.

The service was guaranteed, secure and good value.

Comes recommended!

 

#3 Bureau de Change

Bureau de Change

Usually found in airports or at other places of arrival, bureau de change offices are specially designated currency exchange centres.

These little booths are usually stocked with most popular foreign currencies and can give you on the spot money.

However, they rarely offer good exchange rates and probably will charge you a hefty commission too.

As a last or emergency resort for getting foreign cash these guys can be useful, but you should really be more organised and buy it from a bank or post office in advance if you can.

If you have spare cash when leaving a country, then bureau de change offices can be good for changing this cash into a currency you need.

 

#4 Travellers Cheques

One of the fairly old-school ways to buy foreign currency, travellers cheques are becoming rarer and rarer these days.

They are good security and if all your bankcards get stolen, you’ll probably be delighted to find a few kicking around at the bottom of your bag.

However the difficulty lies in then finding a bank or American Express office that will change the travellers cheques into hard cash.

I used to backpack with them, but don’t really bother now as commission rates are high.

You’re probably just as well to stash a few extra cards around your luggage to minimise any potential thieves swiping them all in one go!

 

#5 The Money Shop

Home Delivery

An online foreign exchange currency service operating in the UK, The Money Shop offers great rates and no commission.

It’s an easy and secure service to use, but just takes a few days longer to process given its online nature.

You can order your money through the website and then collect either instore or via a postal home delivery service – although there is an extra fee for this.

 

#6 WeSwap

One of the new and highly inventive ways to buy foreign currency, WeSwap is an online service that allows you to buy international money from other individuals who are selling it.

Part of the growing ‘exchange economy’, WeSwap links people who have been abroad with those looking to go, so that they simply buy cash from one another without having to buy it from or sell it back to the bank instead.

This essentially cuts out the middle man and ensures you a better deal.

All you have to do is create a free online account and then enter the details for the currency you want to sell or buy.

You then get a free mastercard into which your money is loaded.

There is a small commission charge, but if you introduce 5 friends to this new service, you’ll get 0% commission forever.

Seems like a pretty good deal to me!

 

#7 Bank Transfer

If you’re travelling to a country where you or someone you know has a bank account, then you can transfer funds using your bank to a foreign account.

This is a good way of moving a large lump sum of money into foreign currency and ensures less fees and costs when you withdraw the cash on the ground.

However, the initial process of transfer can be quite a hassle, with costly administrative fees incurred by both banks.

This means it’s probably not one of the best ways to buy foreign currency.

 

#8 HiFX

A better option than transferring money internationally via your bank, is to use an online service that does it for you.

I really recommend HiFX, which is a very secure and popular company that facilitates online foreign currency transfers.

Again, you’ll need access to a bank account in your intended destination to get access to the money on the ground, but if you do, HiFX is one of the cheapest ways to get foreign currency.

Rates are better than banks and HiFX is free to sign up to with no obligations or commitments.

There is a single fee you pay to move the money, but if you’re shuffling a decent amount, which you should do, it’s fairly nominal.

HiFX is easy and efficient with 24/7 access available and online tracking. You can also get free quotes to see how much you’ll save compared to a bank transfer.

If paying one fee to buy foreign currency means you don’t risk the danger of carrying loads of cash with you, then HiFX is probably one of the best ways to buy foreign currency there is.

 

#9 ATM Withdrawal

ATM

Once you’re in a country, then using ATMs to withdraw cash out of your account is probably the best option.

You’ll usually get your bank’s set exchange rate, which won’t be too bad.

The other advantage is that you have some security, i.e. you can withdraw small amounts of cash at a time, meaning you lower the risk of getting lots stolen.

The downside of this however, is that your bank will charge you fees each time you withdraw money overseas, meaning you probably don’t want to be getting cash out all the time.

Foreign ATM machines can also charge you, which can mean a double fee and make things expensive.

My advice is to check with your bank regarding the fees you might incur and then work out for yourself if this is one of the best ways of getting foreign currency for you.

It is the method I normally use when travelling, but I hate the charges, so I shoulder the risk of it getting stolen and usually withdraw a hefty amount of cash to keep charges down. 1-2 weeks worth of money being withdrawn each time works well for me.

 

#10 Western Union

If you’re travelling already, then a securer way of getting cash is to use Western Union.

This service is great for when you might have lost bankcards or need a large sum to be transferred to you.

Someone abroad will have to physically wire you the money and you will have to find a Western Union office to collect it from, but I’ve seen then all over the world, so it shouldn’t be too much of a problem.

Guaranteed security is a big drawcard with Western Union, especially if you’ve run into difficulty.

The process is easy and you don’t have to navigate the banking system or pay any of their fees if you don’t want to (although they do offer a bank transfer system too if you like).

 

So those are the best ways to buy foreign currency I’ve found.

What are your suggestions for getting international money?

 

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2 thoughts on “Cheapest Ways to Buy Foreign Currency

  1. richard says:

    Added to the buying of foreign currency, be careful if you pay by credit card (shopping etc) due to the charges applied by banks to ‘change’ the currency you pay in back to sterling. I believe its not regulated and the banks can charge whatever rate they like (!). Unless you know different (?)

    • Steph says:

      Thanks for the very insightful info Richard – I had no idea about this issue, so will look into it. If it is unregulated, that’s quite worrying, but presumably people are able to get the details from their banks about what they will charge in advance? Hope so!

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