Finding the Best Currency Exchange Near You: Tips, Services, and Savings (2024)

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• When travelling, you'll want to figure out what you're doing for currency exchange ahead of time.
• Local banks or credit unions may be the most convenient and affordable place to exchange currency.
• Make sure to check your institution's exchange rates and service fees to get the best trade.

Traveling abroad can be an exciting experience, but it also requires some planning. In addition to making sure your passport is up to date, you'll want to think through how you'll get the foreign currency you'll need while you're away. When it comes to exchanging currency, the goal is to get the best currency exchange rates with the lowest fees.

Why you need currency exchange services

Travel

One of the most common reasons you might need to exchange currency is if you're planning on traveling to another country. It might be tempting to worry about travel money exchange later so you can focus on planning more exciting parts of the trip. Unfortunately, this could cause you to pay much more in fees and bad foreign currency exchange rates.

Before you go on your trip, think about how much money you might need so you can exchange currency while still in your home country. That way, you'll get a better rate, and you won't have to worry about finding a place to exchange currency in another, unfamiliar country.

Business transactions

Depending on who you're doing business with, you might need to make business transactions in currencies you're not familiar with. Knowing where to go to get the correct currency for your transactions will help them go smoothly.

Trading opportunities

If you've ever wondered what forex is, the answer is simple: Forex stands for the foreign exchange market, and it's the name people use to discuss the trade of foreign currencies.

Davide Accomazzo, an instructor of finance at Pepperdine Graziadio Business School, warns that buying and selling foreign currencies is very different from other types of investing or trading you might be used to.

"Currencies don't really have an expected positive rate of return," says Accomazzo. He says that this is different from something like mutual funds, where you're generally expected to receive some sort of profit over time. This can mean that currency exchange is a more volatile form of trading.

If you're interested in trading currencies, your best bet is to get an online brokerage account. You can also use brokerage accounts for things like stock trading and cryptocurrency exchange.

How to find the best currency exchange near you

Online search tools

When trying to find a good place to exchange currency, something like a currency converter or an exchange rate calculator can give you an idea of what banks are generally trading these currencies for with each other. You can also check historical exchange rates to see how currencies have compared to each other over time. While this can be a good guide, Accomazzo warns that you probably won't find a bank willing to give you a rate that strong.

Many banks exchange foreign currency on a retail level, so make sure to check your bank's website and see if it offers exchange services for the currency you're interested in. Banks and credit unions tend to offer some of the best exchange rates, and most banks will give you the option of picking up your cash in a local branch or having it shipped to your home address.

Mobile apps

Google Maps can be helpful for finding currency exchange services with good reviews near you. If you use Google Maps, make sure to check if the bank has good reviews, does not charge service fees, and offers a competitive exchange rate.

If you're only looking for international money transfer, an online money exchange app might be a good option.

With one popular online money exchange site Wise, you can also hold money in over 50 currencies with just one account. Plus, you'll get a debit card with no foreign transaction fees and can make up to $100 in free ATM withdrawals per month.

If your bank has a mobile app, you can also check that and see if it allows you to exchange currency online.

Factors to consider when choosing a currency exchange

Exchange rates

When exchanging currency, you'll want to keep in mind the exchange rate you're being offered. Exchange rates come in pairs (for example, United States dollars to British pounds), and they tell you how much of the new currency you'll get for your dollar. For example, if you're starting with USD, you might be able to get 0.8 pounds for every one U.S. dollar you trade.

Generally, these rates follow market trends. However, the exact exchange rate will depend on where you go, so make sure to check ahead of time whether the place you're going offers good rates.

Service fees

There are two types of fees you need to look out for when exchanging currency: service fees and foreign exchange fees.

Some banks, credit unions, and ATMs might charge you a service fee to exchange your funds. Always make sure to check what fees the institution you're working with charges ahead of time; even if one bank offers a better exchange rate than another bank, the deal might be worse overall because of high fees. Don't be afraid to ask for a fee breakdown before going through with the exchange, and keep an eye out for no fee currency exchange services.

These are different from foreign transaction fees, which are fees you'll pay if you use certain credit cards overseas. These are typically a percentage of the transaction you make with that card, and can build up over time. Make sure your card doesn't charge foreign transaction fees before you use it.

Location and convenience

While it's helpful to plan ahead of time for your trip, there are some options that allow you to exchange currency conveniently on the go without expensive fees.

Many travel-focused credit cards have no foreign transaction fees in addition to offering rewards for travel expenses, like airline tickets and hotel reservations.

If you already have a credit card that doesn't charge foreign transaction fees, this will usually be the simplest way for you to spend money abroad. There's no work to do ahead of time. You can just use your card as you normally would at home.

Also, some travel-friendly checking accounts may offer debit cards that have no foreign transaction fees.

You can also check to see if your bank has any ATMs in the country you'll be visiting. If you have to visit a nonbank ATM and you're given the option of processing the transaction in U.S. dollars or the foreign currency (called Dynamic Currency Conversion), choose the foreign currency. DCC exchange rates are often higher than the rates charged by card issuers themselves.

Online vs. physical currency exchange services

Pros and cons

There are pros and cons to exchanging currency online and in person.

If you exchange funds online, you'll have access to a greater variety of places to exchange money from. That means you may be able to get a better exchange rate than if you stick to local places. However, you'll have to check how you'll get the money you've exchanged for: they might ship it to you, or they might have you pick the money up at a local branch. Either way, there's probably going to be some waiting involved.

If you exchange funds in-person, you'll be limited to places that have physical locations near you. You'll also want to call ahead to make sure the place you're trading with has the right currency in high enough amounts for your purposes. However, you'll have someone to walk you through the currency exchange process, and you'll be able to walk right out with the money you traded for.

Tips for getting the best exchange rates

There are three things to keep in mind when looking for the best exchange rates: plan and exchange currency before traveling, compare services to see which one offers the best rate, and keep an eye out for hidden service fees.

The No. 1 best way to get a good exchange rate is to exchange money before you start traveling. Currency exchanges near airports and hotels tend to give low exchange rates because they know you need the money immediately. By having a plan beforehand, you're already getting a better deal than you would otherwise.

Always make sure to compare services before you decide on one. Check the banks and credit unions around you to see if any of them offer good exchange rates, and see if you can get a travel credit card or debit card that won't charge you foreign transaction fees.

Finally, make sure you keep an eye out for hidden fees. Foreign transaction fees can add up, and high service fees might make a high exchange rate a worse deal.

Understanding currency exchange regulations

At a large-scale, interbank level, currency trading is "actually a relatively unregulated market," says Accomazzo. However, there's more regulation on a personal level because of anti-money laundering regulations. "There's a number of personal details that one has to reveal," Accomazzo says, "to make sure that it's not money laundering."

Check with the institution you're trading with ahead of time to see what requirements they have for currency trading, whether that's in the form of necessary identification, transaction limits, or otherwise.

Preparing for currency exchange

Identification requirements

Most banks and credit unions will require some sort of identification from you to trade, such as a government-issued ID. Some might also require a proof of address. When you choose who you're trading with, make sure to call ahead and ask what you'll need to bring.

Transaction limits

Some banks and credit unions put limits on how much currency you can exchange at a time. If you're using an ATM, withdrawal fees might also limit how much you can withdraw.

If you're planning on exchanging a lot of currency, always call ahead to see if the bank is able to trade that much. And keep in mind that there are limits to how much physical currency you can bring into a country, if you're traveling.

"Every country is different, but you have a certain maximum amount that you can have in your pocket," Accomazzo says. "That does not apply to limits you have on a credit card, but in terms of actual physical cash, there are certain limits."

Check the laws of the country you're traveling to ahead of time to make sure you're not bringing too much money with you.

Currency Exchange FAQs