Getting a good exchange rate for your holiday money can mean noticeably more spending power abroad, while a poor rate quietly costs you. Knowing where and how to change money helps you get more for your pounds. This guide explains where to get the best exchange rate for your holiday money. It is general information, not financial advice, so compare current rates and providers, as they change, before deciding where to change your money.
What affects exchange rates
Exchange rates move constantly with the currency markets, and the rate you are offered also depends on the provider's margin, any commission, and where and how you exchange. So two travellers changing the same money can get quite different amounts. Understanding that the rate you receive is the market rate adjusted by the provider's costs and margin helps you see why shopping around matters and why some places offer far worse value than others for the same currency.
Avoid airport and last-minute exchange
One of the worst places to change money is at the airport, where rates are typically poor and commission may apply, relying on travellers' last-minute need. Exchanging at airports, ports or tourist areas usually costs you significantly. Planning ahead so you do not have to change money at the airport is one of the simplest ways to get a better rate. Avoiding last-minute, convenience-driven exchange, and sorting your money in advance, protects you from the poor rates these outlets typically offer.
Compare providers
Rates vary considerably between providers, so compare before you change money, looking at high-street bureaux, supermarkets, online providers and your bank or card. Comparison helps you spot the best rate and avoid the worst. Our guide on getting euros or dollars at the best rate goes into detail. Taking a little time to compare the rates and any fees of several providers, rather than using the first or most convenient, can noticeably improve how much foreign currency you get for your money.
Order online in advance
Ordering your currency online in advance often gets a better rate than buying on the day in person, with options to collect or have it delivered, and time to compare. Online providers frequently offer more competitive rates than high-street walk-ins. Ordering ahead also means you are not forced into a poor last-minute rate. Planning your currency in advance and ordering online where it offers a better deal, rather than leaving it to the last minute, is a reliable way to secure a good rate.
Look at the rate and the fees together
A headline rate alone can mislead, as a good-looking rate may come with commission or fees, while a slightly worse rate with no fees could be better overall. Always consider the rate and any charges together to judge the true value. Comparing the actual amount of foreign currency you will receive after all costs, rather than just the advertised rate, ensures you are comparing like with like and choosing the option that genuinely gives you the most money for your pounds.
Fee-free cards can beat bureaux
Often, a fee-free card that spends and withdraws at the market rate beats exchanging cash at a bureau, as it avoids the bureau's margin and gives a close-to-market rate. For much of your spending, a good card can be the cheapest option of all. Our guide on the best prepaid travel cards covers these. Considering whether a fee-free card gives you a better effective rate than buying cash, and using one for most spending, can be more cost-effective than focusing only on where to exchange cash.
Do not leave it to the last minute
Leaving currency to the last minute usually means worse rates, as you are forced to use whatever is convenient, often the airport. Planning ahead gives you time to compare and choose a good rate or order online. Sorting your holiday money in good time, rather than scrambling at the last moment, is one of the most effective ways to avoid poor rates. A little forward planning around your currency consistently results in getting more for your money than last-minute exchange.
To lock in or wait?
Exchange rates fluctuate, and it is tempting to try to time the market, but predicting currency movements is difficult even for experts. Rather than gambling on the rate improving, many travellers simply exchange when convenient and at a good provider, or use a fee-free card. Accepting that you cannot reliably time the market, and focusing instead on getting a fair rate from a good provider without poor fees, is usually a more sensible approach than trying to guess which way rates will move.
Take some cash, spend on card
A practical approach is to exchange a modest amount of cash in advance at a good rate for small purchases and arrival, then use a fee-free card for most spending at close to the market rate. This combines a fair cash rate with cheap card spending. Our guide on the best way to take money abroad covers the mix. Getting a sensible amount of cash at a good rate and relying on a low-fee card for the rest often gives the best overall value for your holiday money.
Watch for dynamic currency conversion
When spending or withdrawing abroad, you may be offered the choice to pay in pounds, which applies a poor conversion rate, so always choose the local currency to get a better rate. Our guide on whether to pay in pounds or local currency explains. Always declining to pay in pounds, and choosing local currency, ensures the conversion is done at a better rate by your own card rather than at the poor rate offered at the point of sale, protecting the value of your money.
How to get the best rate
In summary, avoid airport and last-minute exchange, compare providers and order online in advance, consider the rate and fees together, and use a fee-free card for much of your spending while taking some cash at a good rate. Always pay in local currency. Combining these steps gets you the most for your holiday money. Planning ahead and comparing, rather than changing money on impulse at convenient but poor-value outlets, is the key to a good exchange rate.
Use up leftover currency
If you have leftover foreign currency from a previous trip, using it up rather than changing it back and forth saves on repeated conversion costs, as buying and selling currency both carry a margin. Keep notes safe for a future visit, or spend coins before leaving, as coins are often hard to exchange. Making use of currency you already have, and avoiding unnecessary conversions back to pounds and out again, prevents losing money to the spread each time, which is a small but easy saving on your holiday money.
In short
To get the best exchange rate, avoid airport and tourist-area exchange, compare providers and order currency online in advance, and judge the rate and fees together. A fee-free card spending at close to the market rate often beats bureaux for much of your money, so take some cash at a good rate and spend the rest on card. Always pay in local currency. This is general information, not financial advice, so compare current rates and providers.
Find more in our Travel Money guides.