When traveling, one of the most important things to consider is exchanging your currency for the local currency. While many people think that the airport is the best place to do this, it’s actually not a good idea. In this blog, I’ll explain why you should never go for the airport exchange rate and some possible options instead.
What is forex exchange?
Forex exchange is simply the act of exchanging one currency for another. This can be done for a variety of reasons, but most often it is done in order to buy goods or services in a foreign country. When you engage in forex exchange, you are essentially betting that the currency you are buying will increase in value relative to the currency you are selling.
When I travel from the US to Canada, I won’t be able to use the US currency and will need to exchange my USD with some CAD. The same goes if I’m traveling from Europe to Asia – I’ll need to find a place to exchange my Euros for Yen or my British Pounds for Singapore Dollars.
Airport exchange rate
The problem comes with the rate of exchanging one currency for another. This rate is always in flux and is never known until the actual transaction takes place. The further away the two currencies are from each other – in terms of their countries of origin – the greater the chance that the rate will have changed by the time you attempt to exchange your currency.
Additionally, even if the exchange rate is favorable at the time of your transaction, it may not stay that way. Currency rates are always changing and what might have been a good deal a few minutes ago could be a terrible deal now.
Airport forex bureaus are also notorious for giving rates that are up to 20% worse than the standard market exchange rate and in addition, they charge a $5 to $15 service fee which is very high.
So, if you’re looking to get the best possible rate on your currency exchange, the airport is not the place to do it. There are much better options available to you.
Airport exchange rate euro:
The best place to exchange Euro at an airport for any local currency is by using a local ATM. The rate you’ll receive will be very close to the standard market rate and, in addition, there will be no service fee.
Another option is to use a foreign currency exchange service such as XE.com or Travelex. With these services, you can order your foreign currency online and have it delivered to your home or office. The rates you’ll receive will be very competitive and there is usually no service fee.
So, next time you’re planning a trip overseas, remember that the airport is not the best place to exchange your currency.
Airport exchange rate vs bank:
The airport exchange rate is always going to be worse than the bank rate. The reason for this is because the airport needs to make a profit on the currency exchange and they do this by giving you a worse rate than what they could get if they were to exchange the currency themselves.
Additionally, banks typically have much more experience with foreign currency exchange than the average airport currency exchange booth and as a result, they are able to offer more competitive rates.
Cntraveler.com claims that you can expect airport banks to give you 7 to 15% worse rates compared to what you can get in the market. This Forbes article claims that some banks such as TD Bank and Bank of America exchange foreign currency without charging a fee.
Alternatives to airport forex bureaus
If you’re looking for a better option than the airport forex bureau, there are a few different places you can go.
Use your bank at home:
Your home bank – If you have a bank account, your home bank is usually the best place to exchange currency. They will give you a fair rate and won’t charge any service fees. The only downside is that you might need to order the foreign currency in advance, which can take a few days.
– If you have a bank account, your home bank is usually the best place to exchange currency. They will give you a fair rate and won’t charge any service fees. The only downside is that you might need to order the foreign currency in advance, which can take a few days. An online exchange
Get out of the airport and find competitive exchange rates:
– There are a number of online currency exchanges that can give you a good rate on your currency exchange. The downside is that you will need to pay a small service fee, but it will still be much lower than what you would pay at the airport.
Use your credit or debit card
– If you have a credit or debit card that doesn’t charge foreign transaction fees, you can use it to withdraw cash from an ATM in the foreign country. This is usually the best way to get local currency, as the exchange rate will be very close to the market rate. Just be sure to check with your bank before you travel to make sure they don’t charge any fees.
As you can see, there are much better options available to you than the airport forex bureau. So, next time you’re planning a trip, be sure to avoid the airport exchange rate and use one of these alternatives instead.
Q: are exchange rates better at the airport?
A: No, the airport exchange rate is always going to be worse than the bank rate. The reason for this is because the airport needs to make a profit on the currency exchange and they do this by giving you a worse rate than what they could get if they were to exchange the currency themselves.
Q: What’s the best way to exchange currency?
A: The best way to exchange currency is to use your bank at home or an online currency exchange. These options will give you a much better rate than what you would get at the airport.
Q: Should I use my credit card to get cash from an ATM in a foreign country?
A: Yes, this is usually the best way to get local currency. The exchange rate will be very close to the market rate and you won’t have to pay any service fees. Just be sure to check with your bank before you travel to make sure they don’t charge any foreign transaction fees.
My name is Alex Mutuma and I founded this blog, Airport LLC as a way to document and engage with clients in my travel consulting business. Airportllc.com is the only source of over 2,000 fun things flyers could do during layovers.
Over the past 7 years, I have designed and planned tour packages for hundreds of clients and have recently focussed on the mission of changing boring layovers to excellent mini-vacations by giving you the best suggestions on must-do activities when flying over different airports.
Next time you or your friend are looking for suggestions on what to do in some airport, remember Airport LLC or Airportllc.com. On this site, you’ll get the best suggestions available on the internet regarding hand-picked activities that will fulfill your airport experience.
I currently reside in New York City and have obtained a license to provide professional tour guidance at Airports in the US and across the world. Why should you listen to my suggestions? I have flown through more than 100 airports in the world and fortunately, I have pictures, stories, and tips to share with you regarding all the fun stuff you can do as you wait for your next flight.
Aside from gaining thousands of flying miles, I am also a travel consultant assisting clients with bookings and specifically advance tour bookings of things to do at airports when the layover is longer than 5 hours.
To make a 15-minute free things-to-do consultation with Alex, use my email, firstname.lastname@example.org.
This is only recommended for flyers with long layovers of over 5 hours. If your layover is 3+ hours, you can still reach out but we cannot guarantee the ideal package that will change your layovers to mini-vacations. I only support clients flying through US airports and a select number of cities across the world.
Name: Alex Mutuma
Profession: A professional travel consultant with a focus on airport activities to do during layovers
Phone: +1 945 348 889
Location: 322 Main Packway Street, Boston, US