Originally Posted by David Kung
I am taking a trip to England and Australia in Novemeber. I would like to know which of the following method will give me the most favorable exchange rate in British ponds and Australia dollars? Thanks!
1. Withdraw money from local cash machines (require service fee).
2. Put all the charges on credit cards.
3. Exchange money in airports or local currency exchange stores, such as Thomas Cook.
4. Exchange money with the bank that you have an account with (my bank requires $10 service fee for less than $1000 transaction).
5. Traveler checks.
David
No matter which way you are going to change your money, it is going to cost something.
1. I have found that this system is the cheapest, provided that you shop around to find out which bank charges the least. You would be surprised at the difference in fees. So, a few calls to the various banks around you will make the difference.
2. A mix of one and two is the best, but there again, shop around among the cc companies. Fees vary again wildly.
3. Avoid Travelex and Thomas Cook like the plague. Their fees vary widely and are, most of the time, outrageous. In certain cities like Paris or Geneva for example, there are some independent small exchange shops that have amazing rates with very low fees. They are however hard to locate.
4. If you know what your needs are going to be in advance, it would not hurt to change a little bit, so as to be ready as soon as you arrive in the country. Would not work for large amounts, too risky.
5. I am a little bit old fashioned in that regard and I found TC's still the best, provided you buy them in advance in the denomination of the country you'll visit. i.e. buy TC's in Pounds and in Australian Dollars. When you need cash, just buy something at a store, they'll give you back the change. No additional fees. I have made substantial gains by buying TC's. I bought Amex TC's when the Euro was under $ 0.90, exchanged them again as the Euro was more than $ 1.20
On my last trip in Australia, I have lost my TC's (more than $12'000.-), had no trouble in having them refunded. Avoid banks to cash them, it will save you cashing fees.
Good luck and have a nice trip.