Best Places to Exchange Currency Before Traveling Abroad

Traveling abroad is an incredible experience, but figuring out how to exchange your money before you go? That can be tricky if you don’t know where to start. While many travelers focus on booking flights and planning itineraries, getting the best exchange rate for your cash is just as important—it can save you a surprising amount of money.

So, where should you exchange your currency before leaving the country? Let’s break down the best options to help you get the most out of your travel budget.

1. Your Local Bank or Credit Union

One of the most reliable and affordable places to exchange currency before traveling is your local bank or credit union. Many banks offer foreign currency exchange services for account holders, often at competitive rates and with low or no fees.

Here’s why banks are a great option:

• Better rates: Banks typically use mid-market rates, which are more favorable than what you’d find at airport kiosks or exchange bureaus.
• No hidden fees: Banks often provide a clear breakdown of any service charges upfront.
• Convenience: You can order the currency online or at your local branch, and some banks even deliver it to your home.

Pro tip: Not all banks stock every foreign currency, so check ahead of time. If your destination’s currency isn’t common, it may take a few days to order. Planning early is key!

2. Currency Exchange Services (Travelex, AAA, etc.)

Currency exchange services like Travelex or travel-focused organizations like AAA can also be a good option. Travelex has physical locations in many cities, and they often allow you to order currency online and pick it up in person.

AAA members can often take advantage of discounted exchange rates or other perks through the organization’s travel services.

The benefits of using currency exchange services include:

• Ease of access: These services are designed for travelers, so they’re straightforward to use.
• Availability: They stock a wide range of currencies, including less common ones.
• Online ordering: Many services allow you to lock in exchange rates online and pick up your cash when it’s convenient for you.

That said, these services may charge higher fees than banks, so make sure you compare rates before committing.

3. Online Currency Exchange Providers

In today’s digital age, online currency exchange providers have become a popular choice for savvy travelers. Companies like Wise (formerly TransferWise), OFX, and Revolut allow you to convert money at competitive exchange rates and have it deposited directly into your account—or even delivered as cash.

Why go online?

• Competitive rates: Online providers often have lower margins and fees compared to banks or kiosks.
• Transparency: You can see exactly what you’re paying and how much you’ll get in return.
• Convenience: Some services deliver cash to your doorstep, eliminating the need for an in-person visit.

Keep in mind, though, that delivery services may take a few business days, so plan accordingly.

4. Airport Currency Exchange Counters (Only in Emergencies)

Airport currency exchange counters are convenient, but they’re rarely the best option for getting a good deal. These kiosks often offer poor exchange rates and charge high service fees. However, if you’re in a pinch and need cash immediately, they can be a lifesaver.

To minimize losses:

• Exchange only a small amount—just enough to cover your immediate expenses like transportation or tips.
• Check the rate and fees before handing over your money.

In short, airport counters should be your last resort, not your go-to option.

5. Prepaid Travel Cards

Prepaid travel cards, such as those offered by Visa, Mastercard, or Amex, are another solid option for managing currency. These cards allow you to load money in the currency of your destination and use them like a debit card.

Why travelers like them:

• Locked exchange rate: When you load the card, you lock in the current exchange rate, protecting you from fluctuations.
• Budgeting: Prepaid cards help you stick to a set travel budget.
• Security: If the card is lost or stolen, you can easily replace it without losing your money.

However, these cards may come with fees for loading money, making withdrawals, or converting leftover currency back to your local currency. Be sure to read the fine print before committing.

6. Ordering Currency Through Travel Agencies

If you’re booking your trip through a travel agency, ask if they offer currency exchange services. Many agencies partner with currency exchange providers to offer competitive rates or special deals for their clients.

While this option might not be the cheapest, it’s worth considering if you’re already working with a travel agent and want to streamline the process.

7. Withdrawing Cash Abroad

While not technically “before” your trip, withdrawing cash from ATMs in your destination country is another strategy to consider. Many travelers find that foreign ATMs offer competitive exchange rates, especially if their home bank has partnerships with international banks.

If you plan to go this route, here’s what to do before you leave:

• Notify your bank: Let them know your travel dates to avoid triggering fraud alerts.
• Check ATM fees: Ask your bank about foreign withdrawal fees, and look for cards that reimburse these charges.
• Research partner banks: Some banks, like Bank of America and HSBC, have global networks that allow fee-free withdrawals at specific ATMs.

It’s also a good idea to bring a backup plan, like a credit card or small amount of cash, in case you encounter ATM issues abroad.

8. Exchange Currency Through Peer-to-Peer Platforms

For travelers looking for something a bit different, peer-to-peer currency exchange platforms like CurrencyFair can be an interesting option. These platforms connect individuals who want to exchange currencies directly, cutting out traditional providers.

Benefits include:

• Competitive rates: Since you’re trading directly with others, you avoid high fees.
• Customizable transactions: You can specify the rate you’re willing to accept and wait for a match.

However, this method may require more time and effort than traditional options, so it’s best for travelers who plan ahead.

Tips for Getting the Best Deal

No matter where you choose to exchange your money, here are some golden rules to follow:

1. Plan Ahead: The earlier you start your currency exchange process, the more options you’ll have to shop around for the best rates.
2. Compare Rates and Fees: Even small differences in rates can add up, especially for larger amounts.
3. Avoid Dynamic Currency Conversion: If a merchant offers to charge your card in USD instead of the local currency, say no. You’ll almost always pay more this way.
4. Keep Small Bills: When exchanging currency, request small denominations. This makes it easier to pay for things like taxis, tips, and snacks without needing change.
5. Don’t Exchange Too Much: It’s better to exchange what you think you’ll need and use credit cards for larger purchases. If you overestimate, you may lose money converting unused currency back.

What to Avoid

Now that you know where to go, here are a few places and practices to avoid when exchanging currency:

• Airport Kiosks: Unless it’s an emergency, skip these overpriced options.
• Hotel Exchange Desks: Similar to airport counters, these often have poor rates and high fees.
• Unregulated Vendors: Stick to established providers to avoid scams or counterfeit money.

Final Thoughts

Exchanging currency before traveling abroad doesn’t have to be stressful. With a little preparation and the right strategy, you can get great rates, avoid unnecessary fees, and keep more money in your pocket for the fun stuff—like exploring new destinations and indulging in local cuisine.

Whether you opt for your local bank, an online service, or even a prepaid travel card, the key is to research your options and plan ahead. By taking the time to find the best place to exchange your currency, you’ll start your trip on the right financial foot.

Bon voyage—and happy spending!