Why is it that, when I check exchange rates online, the rates are far better than those in travel shops? Is it possible to buy currency at the online rates and, if so, how? | Notes and Queries (2024)

FAQs

Do you get better exchange rates online? ›

The Best Exchange Rates can be Found Online

Online travel money providers offer the best exchange rates of all because they have lower overheads than high street shops and can afford to be a bit more generous with their rates. A comparison website can help you to the best deals by scouring the market for you.

OANDA's Currency Converter allows you to check the latest foreign exchange average bid/ask rates and convert all major world currencies. OANDA Rates™ are foreign exchange rates compiled from leading market data contributors.

Local banks and credit unions usually offer the best rates. Major banks, such as Chase or Bank of America, often offer the added benefit of having ATMs overseas. Online peer-to-peer foreign currency exchanges. Online bureaus or currency converters, such as Travelex, provide convenient foreign exchange services.

The sell rate is the rate at which a traveler sells foreign currency in exchange for local currency. The buy rate is the rate at which one buys foreign currency back from travelers to exchange it for local currency.

Though there may be a small fee if you exchange less than a certain amount, your bank or credit union will almost always be the cheapest place to exchange currency. You may be able to order currency at a branch location, by phone, or online to have it delivered to you or to pick up at a branch.

The best US dollar exchange rate right now is 1.2644 from Travel FX. This is based on a comparison of 17 currency suppliers and assumes you were buying £750 worth of US dollars for home delivery.

With time at your disposal, you'll be able to see exactly what the fee and rate is, and how many euros you'll get for your dollars. It's possible of course that you might get a better deal when you land in Europe. It may well be the case that fees are lower and exchange rates better.

Simple to use

For example, if you want to know how many Indian rupees one US dollar can buy, simply use the formula: x = USD/INR. This calculation will be performed for you by an online currency converter using publicly available data from FOREX markets.

Is it better to exchange currency at home or abroad? ›

Where to Get Good Rates: ATMs and Local Banks. The best place to exchange money is a local ATM or a bank. Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere, or you can go to an ATM to skip the line.

Typically, the least busy times of the week are Mondays, mid-week and the weekend (excluding Friday). These days have the lowest number of transfers in the week, so you might expect to see less fluctuation in the mid-market rate.

What's better – a high or low exchange rate? The answer to this largely depends on the country you're sending from. If your send currency is stronger than the one you're converting to, you'll want a high rate.

The exchange rate gives the relative value of one currency against another currency. An exchange rate GBP/USD of two, for example, indicates that one pound will buy two U.S. dollars. The U.S. dollar is the most commonly used reference currency, which means other currencies are usually quoted against the U.S. dollar.

A fixed or pegged rate is determined by the government through its central bank. The rate is set against another major world currency (such as the U.S. dollar, euro, or yen). To maintain its exchange rate, the government will buy and sell its own currency against the currency to which it is pegged.

Using a credit card with no foreign transaction fees and choosing to make purchases in local currency will nearly always save you money. Currency conversion apps can help you better understand pricing and identify hidden charges.

Before you leave the country, visit your bank or credit union so you can avoid paying ATM transaction costs and possibly receive a better exchange rate. The worst places to exchange your money for another currency are oftentimes the most convenient, like the airport.

Denominations are always subject to availability. Is it safe to order foreign currency online? Yes.