FOREIGN CURRENCY EXCHANGE OPTIONS
These days there are a number of different ways to buy foreign currency, from traditional Travel Money purchases such as cash and Travellers' Cheques; to the newer Travel FX cards and to larger Foreign Exchange transfers. Generally if you use your normal credit card or traditional banks to make your purchases you will potentially incur significant fees. Listed below, dependant on your needs, are options offers by Foreign Exchange experts and may offer far better deals than standard channels.
- Compare Travel Money (Cash)
- Compare Travel FX Cards
- Compare Travellers Cheques
- Compare Foreign Currency Exchange (Large Transfers)
ORDERING TRAVEL MONEY ONLINE
The days of having to buy foreign currency at expensive Bureaux de Change at the airports or at expensive local agencies are gone. The more discerning traveller now has a number of options at their disposal.
You can order your Travel Money online and have it delivered by courier at home or in the office. Just check delivery times to make sure the cash arrives in good time for your departure, though most offer rapid delivery of 2 days or less (some even have next day delivery.) The other option is to pick up the cash at a designated branch.
As well as delivery, any charges and pickup at branch, options you also need to consider are whether the provider will buy back any foreign money you bring home free of charge.
WHAT IS A TRAVEL FX CURRENCY CARD?
A Travel FX card, also called a Cash Passport or Foreign Currency card is a great new way of buying money when travelling abroad. It works as does a normal prepaid card – IE you load money and can top up money onto your card which you then spend as you would a normal credit or debit card.
However, these cards are specifically designed for usage abroad so you don't incur a number of significant charges you would when using a standard card on purchases. There is not Foreign exchange fee if you use the card in the same currency in which it was purchased, and with many cards there is no purchase fee and a low ATM fee.
Just as importantly, you will get an exceptional foreign exchange rate when you load the money with funds – almost certainly superior to banks, bureaux de change and the Post Office. Once you have bought the funds; they stay at the level they were purchased / loaded at – so you are not subject to the fluctuations of the currency market.
Additionally if the card is lost or stolen; it can be cancelled, emergency funds ordered to tide you over and a new card delivered.
ORDERING TRAVELLERS CHEQUES ONLINE
Some travellers like the security of Travellers Cheques over cash. Travellers cheques can be cancelled if lost or stolen and the funds restored.
These days you can order your Travellers' Cheques online and have it delivered by courier at home or in the office. Just check delivery times to make sure the cheques arrives in good time for your departure, though most offer rapid delivery of 2 days or less (some even have next day delivery.) The other option is to pick up the cheques at a designated branch.
Remember that though the exchange rate you get through the companies we list is generally superior to traditional banks; you will have to incur any local costs and commission when exchanging Cheques for cash.
If you are travelling through a number of countries with different currencies; you may want to buy in Pounds Sterling; though of course you will be subject to the fees for the currency conversion as well.
FOREIGN CURRENCY EXCHANGE FOR LARGE TRANSFERS
If you are planning to move a large amount of currency (EG £5,000 and over) abroad, you should certainly consider the services provided by Commercial Foreign Exchange banks. These institutions specialize in dealing with the best currency rates available, usually only small percentage under the Interbank Spot rates. They are a far superior method of transferring money than using your traditional bank.
You may want to buy a property abroad, or perhaps a car or are emigrating to a new country so need to transfer your bank balance abroad in the most economically efficient manner possible. As well as obtaining an exceptional exchange rate; there is rarely (sometimes for smaller amounts) any attached commission - unlike traditional banks. There may be a nominal telegraphic transfer fee though this is usually under £50 and often merely £15.
The Commercial Foreign Exchange banks make their money because they can buy currency at the Interbank rate – and take a small margin on this when the money is bought by the consumer or business. However the fantastic exchange rate is largely passed on to the client, resulting in big savings from traditional bank transfers.