The best place to exchange currency depends on when you need the money. Before your trip, your bank or credit union is often a strong place to start. After you arrive, an ATM owned by a major bank can offer a competitive way to get local cash. Airport kiosks and hotel exchange desks tend to cost more.
The advertised fee doesn’t tell you the full cost. Exchange-rate markups, ATM fees, foreign transaction fees, and currency conversion charges can all reduce the amount of money you receive. A service with “no commission” can still be expensive if it gives you a poor exchange rate.
The best way to compare your options is simple. Look at the exchange rate, add any fees, and compare how much foreign currency you’ll actually receive. Here’s how the main options stack up and what to check before you exchange your money.
Best Places to Exchange Currency at a Glance
You don’t need to use the same method for every transaction. Many travelers get a small amount of cash before departure, use an ATM for more cash after arrival, and pay by card for most purchases.
| Option | Best For | Main Cost to Check | General Take |
|---|---|---|---|
| Bank or credit union | Cash before departure | Exchange-rate markup and order fees | Strong place to start |
| Bank ATM abroad | Cash after arrival | ATM fees, card fees, and exchange rate | Often a low-cost choice |
| Online currency exchange service | Home delivery before a trip | Exchange rate, service fees, and shipping | Convenient, but compare the total cost |
| Local currency exchange office | Cash exchange after arrival | Exchange-rate markup and commission | Can be competitive if you compare rates |
| Airport currency kiosk | Small emergency exchanges | Exchange-rate markup and fees | Usually expensive |
| Hotel exchange desk | Convenience | Exchange-rate markup and fees | Usually expensive |
No option is automatically cheapest every time. The total amount of foreign currency you receive matters more than the fee advertised on a sign or website.
How Currency Exchange Rates and Fees Work
Currency exchange companies can make money in more than one way. Some charge a visible transaction fee. Others give you an exchange rate that is less favorable than the current market rate. Some do both.
A fair comparison should account for the exchange rate and every fee attached to the transaction.
Compare the Mid-Market Exchange Rate
The mid-market rate sits between the prices at which currencies are bought and sold in global markets. You may also hear it called the interbank rate.
Consumers usually won’t receive the exact mid-market rate when they exchange cash. Banks and currency exchange companies often build a markup into the rate they quote.
That doesn’t automatically make the exchange a bad deal. It simply means you should compare the quoted rate with the mid-market rate before you decide where to exchange a large amount of money.
Compare the Final Amount of Currency You’ll Receive
The easiest comparison is often the simplest one. Ask each provider how much local currency you’ll receive after all fees for the same dollar amount.
Suppose one provider advertises “no commission,” but its exchange rate costs you 4% compared with another option. On a $1,000 transaction, that difference equals $40.
A second provider could charge a $10 fee and still give you more foreign currency if its exchange rate is much better.
Don’t choose an exchange service based on the stated fee alone. Compare the final amount you’ll walk away with.
Watch for Dynamic Currency Conversion
An ATM, store, restaurant, or hotel may ask whether you want the transaction processed in U.S. dollars instead of the local currency. This service is called dynamic currency conversion.
The U.S. dollar amount can look helpful because you immediately know what the purchase costs. The conversion can come with an unfavorable exchange rate or an added markup.
In most cases, choose the local currency and let your card network or financial institution handle the conversion. Visa also advises travelers that choosing local currency can help them avoid the markup associated with dynamic currency conversion.
The same rule applies at an ATM. If the machine offers to convert your withdrawal into U.S. dollars, you can usually decline that conversion and continue with the withdrawal in local currency.
Where to Exchange Currency Before Your Trip
You may want some foreign cash before you leave the United States. It can help pay for transportation, tips, small purchases, or other expenses right after you arrive.
You don’t need to exchange your entire travel budget before departure. Start with enough cash for your initial needs, then compare your options for additional money after you arrive.
Your Bank or Credit Union
Your bank or credit union is one of the first places to check. Many banks and credit unions that exchange foreign currency let customers order common currencies before an international trip.
Some institutions let you pick up the money at a branch. Others may offer delivery. Currency availability, order minimums, fees, exchange rates, and delivery times can differ.
Ask how much foreign currency you’ll receive for a specific dollar amount after all charges. That makes it easier to compare your bank with other options.
You should also order your cash early enough to account for processing time. Less common currencies may take longer to obtain.
Online Currency Exchange Services
Online currency exchange services let you order foreign money before your trip without visiting a bank branch.
For example, Xchange of America lets customers order foreign currency online for delivery. Convenience is the main appeal, but convenience doesn’t always mean the lowest total cost.
Check the quoted exchange rate, shipping charge, service fee, order minimum, and final amount of currency before you buy.
An online service can make sense if your bank doesn’t carry the currency you need or if home delivery saves you a trip to a branch.
Currency Exchange Stores
Currency exchange stores can also provide cash before a trip. You may find them in shopping centers, tourist areas, and major cities.
Rates can differ sharply between companies. Don’t assume that a store with “0% commission” has the best price. The company may recover its cost through the exchange rate.
Ask for the final amount you’ll receive before you hand over your cash.
Where to Get Foreign Currency After You Arrive
You can still get a competitive exchange rate if you arrive without much local cash. In many destinations, an ATM owned by a major financial institution is one of the first options worth checking.
Your card’s fee structure matters. Review it before your trip so you know what your bank charges for international withdrawals.
Bank ATMs
A bank-owned ATM can be a convenient way to withdraw local currency from your U.S. account.
Your total cost can include an ATM operator fee, a fee from your own financial institution, a foreign transaction fee, and an exchange-rate markup. Some accounts reimburse part or all of the ATM fee.
Try to use an ATM that belongs to a recognized bank instead of an independent machine in a tourist area. Check the screen carefully before you approve the transaction.
If the ATM asks whether you want the withdrawal converted to U.S. dollars, decline that conversion and choose the local currency.
Some travel-friendly accounts can cut ATM costs substantially. Charles Schwab is one example. You can read our Charles Schwab review for details about its checking and debit card features.
Your current bank may also have international ATM partnerships or travel benefits that reduce fees. Our guide to the best banks for international travel covers other options.
Local Banks and Currency Exchange Offices
A local bank or reputable currency exchange office can make sense if you have U.S. dollars in cash that you need to convert.
Check several rates if you’re exchanging a large amount. Currency exchange offices in the same city can offer different rates for the same transaction.
Ask whether the posted rate already includes the company’s commission. Then ask exactly how much local currency you’ll receive.
A transparent quote makes comparison much easier.
Where Not to Exchange Currency Unless You Have To
Convenience can get expensive when you exchange money. Locations with a captive audience often have little incentive to offer the best exchange rate.
You may still need these options in an emergency. Keep the transaction small if you have a lower-cost alternative nearby.
Airport Currency Exchange Kiosks
Airport kiosks are easy to find and easy to use. That convenience can come with high exchange-rate markups or added fees.
If you land without any local money and need cash immediately, exchange only what you expect to need before you can reach a bank ATM or another exchange option.
Don’t exchange your full travel budget at the airport simply because the kiosk is the first option you see.
Hotels and Tourist-Area Exchange Counters
Hotels may offer currency exchange services for guests. Tourist districts can also have exchange counters within a few steps of major attractions.
Both can be convenient, but convenience often comes at a higher cost.
Check the exchange rate before you accept the transaction. If you have access to a bank ATM or another reputable exchange provider, compare the final amount first.
Is It Better to Exchange Cash or Use a Card Abroad?
Most travelers don’t need to choose between cash and cards. A mix of both can work better.
Cash is useful for small businesses, markets, tips, transportation, and places that don’t accept cards. Cards can reduce the amount of physical money you need to carry.
Use a Debit Card for Cash Withdrawals
A debit card gives you direct access to money in your bank account through ATMs.
Before your trip, check your bank’s foreign transaction fee, international ATM fee, daily withdrawal limit, and ATM reimbursement policy. Our guide to the best debit cards for international travel compares options built for overseas use.
Fewer, larger withdrawals can reduce repeated flat ATM charges. Don’t withdraw more cash than you feel comfortable carrying just to save a small fee.
Use a Credit Card for Purchases
A credit card can be a better choice for purchases if the card doesn’t charge a foreign transaction fee.
Check the card’s terms before you leave. A 3% foreign transaction fee would add $30 to $1,000 of overseas purchases.
Always choose the local currency when a merchant gives you a choice between local currency and U.S. dollars. The U.S. dollar option may use dynamic currency conversion.
Avoid a credit card cash advance at an ATM unless you have no better option. Cash advances can come with separate fees and interest charges.
How Much Foreign Currency Should You Get Before a Trip?
There isn’t one amount that works for every destination. Card acceptance, local customs, transportation, tipping practices, and your itinerary all matter.
You may need very little cash in a destination where cards are accepted almost everywhere. You may need more in a place where small businesses, taxis, markets, or rural areas rely heavily on cash.
A practical approach is to get enough foreign currency to cover your first day or two. You can get more after arrival if you need it.
This approach also lowers the risk that you’ll return home with a large amount of unused foreign currency and pay another conversion cost to change it back into U.S. dollars.
How to Pay Less When You Exchange Currency
You don’t need to find a perfect exchange rate to save money. A few checks can prevent most unnecessary costs.
Start with the final amount of foreign currency you’ll receive. Compare that amount with at least one other option. Check the exchange rate and every separate fee.
For ATM withdrawals, review both your bank’s fees and the ATM operator’s fees. Decline dynamic currency conversion if the machine offers to process the withdrawal in U.S. dollars.
For card purchases, check whether your card charges a foreign transaction fee. Pay in local currency when the merchant gives you the choice.
These steps matter more than a sign that says “no commission.”
What to Do With Leftover Foreign Currency
A little planning can reduce the amount of foreign cash you bring home, but exact spending is hard to predict.
What you do with leftover money depends on the amount, the currency, and whether you expect to visit the country again.
Sell Foreign Banknotes Back to a Bank or Exchange Service
Some banks and currency exchange companies will buy foreign banknotes from you.
The buy-back rate may be less favorable than the rate you paid when you bought the currency. Fees may also apply.
Check the amount you’ll receive before you complete the transaction, especially if you have a large balance.
Save the Currency for a Future Trip
You don’t have to exchange every leftover banknote.
If you expect to return to the same country, keeping the money can save you from another currency exchange later.
This makes the most sense for currencies that are still in circulation and for destinations you expect to revisit.
Spend or Donate Foreign Coins
Foreign coins can be harder to exchange after you return home. Many banks and currency exchange providers accept banknotes but not coins.
Try to spend coins before you leave. You can use them for small purchases, transit, snacks, or tips where appropriate.
Some airports and charities also collect leftover foreign currency for donations.
Bottom Line
For most travelers, a bank or credit union is a sensible place to check for foreign cash before a trip. Once you’re abroad, a bank-owned ATM can be a convenient and competitive way to get more local currency. Cards with low international fees can cover many of your other purchases.
The most important comparison isn’t the advertised commission. It’s how much foreign currency you receive after the exchange-rate markup and every fee. Compare the final amount, choose local currency at ATMs and card terminals, and reserve airport or hotel exchanges for cases where convenience matters more than cost.
