The exchange rate you see quoted on Google or our currency converter is the mid-market rate — the midpoint between buying and selling prices on global currency markets. No retail provider gives you this rate. Instead, they apply a spread (a markup) on top, and often a fixed commission fee as well. The goal when exchanging money is to minimise this total cost.
Understanding Exchange Rates
When a currency bureau quotes "0% commission", look at the exchange rate itself. The markup is often hidden there. A "commission-free" service offering GBP/EUR at 1.10 when the mid-market rate is 1.18 is charging you roughly 7% — far more than a provider charging a transparent 1% fee.
Always compare total cost: (amount you receive) vs. (mid-market rate × amount exchanged). The difference is what you're paying.
Check live rates
Use our currency converter to see today's mid-market rate for 25 currencies — the benchmark to compare any provider against.
Open the Currency Converter →The Best Options for Getting Foreign Currency
1. ATMs abroad (usually the best choice)
Drawing from a foreign ATM typically gives you close to the interbank rate — the best available outside financial markets. You'll usually pay:
- A foreign transaction fee from your home bank (typically 1–3%)
- Possibly a fixed withdrawal fee per transaction
- Sometimes an ATM operator fee (charged by the local bank, often avoidable)
To minimise costs: use your bank's partner ATMs abroad (e.g., HSBC with HSBC), make fewer but larger withdrawals to reduce per-transaction fees, and always choose to be charged in the local currency when prompted.
2. Travel money cards (Wise, Revolut, Starling)
These are now the gold standard for frequent travellers. Wise (formerly TransferWise) converts at the mid-market rate plus a small transparent fee (typically 0.4–1%). Revolut offers free conversion up to a monthly limit at the interbank rate, with a 0.5–1% weekend markup.
- Wise — best for one-off large conversions; transparent fees; available in 40+ currencies
- Revolut — best for frequent travellers; free ATM withdrawals up to a monthly limit
- Starling / Monzo (UK) — no foreign transaction fees; interbank rate on card payments
Load multiple currencies before you travel. These cards also add a useful safety layer — if the card is compromised, you're not exposed to your main bank account.
3. Specialist exchange bureaus (before departure)
In the UK: the Post Office, Marks & Spencer Money, and Travelex (online, not airport) often offer competitive rates for common currencies when ordered in advance. Order online for home delivery or click-and-collect at the airport airside (after security) for better rates than walk-up desks.
4. Your bank branch (adequate, not optimal)
Banks offer reasonable rates but often require advance ordering (several days for less common currencies). Useful as a backup, but rarely the best option.
What to Avoid
Airport exchange desks (worst rates)
Airport currency exchange kiosks charge some of the worst rates available — typically 10–15% above mid-market. High rents and captive audiences allow them to profit regardless. If you arrive with no local currency, withdraw from the airport ATM instead. If you must exchange cash at an airport, do it at a pre-ordered, airside collection desk.
Hotel desks
Hotel reception currency exchange is almost always poor. Use only in genuine emergencies.
Dynamic Currency Conversion (DCC) — always decline
When paying by card abroad, you'll sometimes be asked: "Would you like to pay in pounds (or dollars) instead of the local currency?" Always choose the local currency. DCC — where the merchant converts the transaction at their own rate — typically adds 3–7% on top of the standard exchange. It benefits the merchant, not you.
DCC example
You buy a €150 dinner in Paris. The DCC terminal offers to charge you £135 instead. Your bank would charge £127 at the interbank rate. Always pay in euros (local currency) and let your bank do the conversion.
How Much Cash to Carry
The right amount depends on your destination:
| Destination Type | Cash Recommendation |
|---|---|
| Western Europe / UK / USA / Australia | Minimal — cards accepted almost everywhere. Carry enough for taxis and small purchases. |
| Southeast Asia (Thailand, Vietnam, Indonesia) | Moderate cash needed — markets, street food, local transport often cash-only. |
| Eastern Europe / parts of Africa | More cash required outside major cities. ATMs less reliable in rural areas. |
| Japan | Japan is still heavily cash-based. Carry more than you think you'll need. |
| Middle East (UAE, Qatar) | Cards widely accepted in cities; cash useful for souks and taxis. |
A good rule of thumb: carry enough for 24–48 hours of expenses on arrival. Then use ATMs locally or rely on your travel card for the rest.
Credit Cards Abroad
Credit cards typically offer better exchange rates than debit cards and have stronger fraud protection. Look for cards with no foreign transaction fee:
- UK: Halifax Clarity, Barclaycard Rewards, Virgin Money Travel
- US: Chase Sapphire Preferred, Capital One Venture, Schwab Debit
- Australia: 28 Degrees Mastercard, ING Orange Everyday
Always notify your card provider before international travel. Even with fraud alerts enabled, many banks block transactions from unfamiliar countries — a frustrating situation when you're abroad and need to pay for something.
Lesser-Known Currencies — Plan Ahead
Exotic or less liquid currencies (Thai Baht, Vietnamese Dong, Indonesian Rupiah, Moroccan Dirham) may not be available from UK or US banks. Some are also restricted or only available within their country (Dirham, for instance, cannot easily be obtained abroad). For these, plan to withdraw on arrival using an ATM, or check if your Wise account supports the currency before you travel.