Exchange Rates – How to avoid bum deals

Exchange rates vary depending where you exchange your sterling

If you need to exchange money if you're travelling abroad on pleasure or business, it can cost you more than you think as exchange rates vary depending where you take your money. The Times newspaper reported how one reader was aware of varying exchange rates at different airports – he was offered €1.3229 to the pound at Bristol airport, but a business colleague of his was offered €1.4074 at the same time at Heathrow airport.

Shop around for exchange rates

The bureaux de change in question said that currency exchange rates are generally worse at regional airports because of the lower demand for turnover. This proves what many clued up travellers have known for a long time – it isn't just the exchange rates you have to think about but where you exchange your money. The reason the price varies is because of economies of scale. Buying from a High Street vendor such as a bank or post office will have higher rates than buying from a specialised foreign exchange company who can get the exchange rates at a more competitive, wholesale rate.

Exchange rates and overseas transactions

On top of that, it isn't just exchange rates or where you exchange your money you should be wary of, but how you spend your money overseas. One major High Street bank has increased overseas transactions on debit cards to £1.25 per purchase, and cash withdrawals at ATM machines, especially for small sums of money, costs more too.

Travellers are advised to shop around and be wary of:

• Exchange rates that are less favourable
• Exchange bureaux's that charge commission on top
• Commission free but rubbish exchange rates
• Hidden fees and charges
• Debit card withdrawals overseas that have currency fees, typically at 2.75% f the amount withdrawn – this is wrapped up into the exchange rates so does not appear on your statement as a separate fee.
• Withdrawal fees overseas, typically at 2% of the amount withdrawn.

Buying foreign currency before you leave is often the best way to get value for money, but make sure you shop around to get the best exchange rates.

Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money with us by getting better currency exchange rates than with your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk