Before leaving your country for your foreign trip, knowing about currency exchange rates is crucial. You must know where and how to exchange currency to get the local currency of the country you’re visiting.

You can trade currency before leaving your country or after arriving in a new country. However, converting your money to a hotel or currency kiosk in an airport can be expensive.

Why?

This can be due to poor exchange rates and high fees. Most travelers usually exchange currency in bulk before traveling outside the country to avoid paying large fees. For example, if you’re planning a trip to New Zealand from the UK, you can visit your bank or credit union to exchange currency. They will offer the best GBP to NZD exchange rates at lower fees.

If you don’t know about foreign currency conversion, keep reading. This article explains where to exchange currency without paying high fees and which places to avoid.

Why Exchange Currency?

Foreign currency conversion is converting your home currency to the currency of the country you are traveling to.

When traveling to a new country, it’s always best to carry local currency. Not every shop or vendor will accept cards or online payments, and some transactions also have a foreign transaction fee every time you purchase anything. This can also lead to a situation where you have money in your account but cannot access it in another country. This is why exchanging your money in local currency in cash is necessary.

Where to Exchange Currency Abroad?

Sometimes the bulk cash stash isn’t enough, and you may need more money after arriving at the destination. Here you can go with exchange options like banks, credit and debit cards, and currency exchange websites.

Here are some of the best places to exchange currency:

• Banks and Credit Unions

You can visit local banks and credit unions for their currency exchange services and rates. These places offer the best currency exchange rates online, by phone or in person. Only in a few cases a bank charges a small fee if you want money less than a certain amount.

• Currency Exchange Websites & Apps

A convenient way to exchange your home currency to the currency of any country is through international banking apps and currency exchange websites. These platforms offer reasonable exchange rates and lower fees.

• ATM

Another great way to exchange money at the best rates and without high fees is through your bank’s ATM. You can find an ATM at the airport when you arrive at the destination or nearest your hotel.

Make sure to withdraw large amounts of money to keep the number of withdrawals less. This helps reduce the amount you have to pay, such as foreign transaction fees and international ATM fees.

Where to Avoid Exchange Currency Abroad?

Apart from banks, ATMs and online currency exchange websites, there are other ways from which you can convert your money abroad. However, these methods might seem convenient at first, but they charge high fees for their services.

Here are some places where you should not exchange currency:

Airport kiosks, Hotels or Transportation Hubs

There are exchange counters, ATMs, and kiosks at airports, near hotels or in train stations. These places offer easy and convenient foreign currency exchange. However, they often charge hefty fees and unfavorable conversion rates because these options typically make a profit from you.

Currency Exchange Stores

You can find several currency exchange shops or stores near popular tourist areas. These stores are strategically placed at these spots, as they know while traveling or shopping around; you might need some extra money. Thus, these places offer the worst exchange rates and sky-high fees.

Conclusion

If you’re planning a trip to New Zealand, the US, or elsewhere outside the UK, you’ll likely need foreign funds, and for that, you need to know about exchange rates such as GBP to NZD. Depending upon the amount and requirement, you can exchange currency through your banks, credit unions, online websites, and in-network ATMs at lower fees and best rates.

FAQ

1. Do banks exchange foreign currency?

Yes, several banks exchange foreign currency for their customers. They may charge a small fee, but you’ll get the best exchange rate.

2. Are there any alternatives to exchanging currency?

You can use credit cards, prepaid travel cards, and traveler’s checks to avoid the hassle of exchanging currency.

3. How to avoid foreign exchange fees?

You can’t completely avoid currency exchange fees, but you can minimize it. You can use international credit cards with no foreign exchange fees and international travel cards or travel money cards.

Krishna Murthy V

Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.