Currency Exchange Tips: How to Get the Best Rates Abroad

Nothing spoils a trip abroad like feeling overcharged before you even step out of the airport. While planning flights, hotels, and sightseeing usually get all the attention, savvy travelers know that smart currency exchange can make a big financial difference—especially over a multi-week trip or a family vacation.

Whether you're heading to Europe, Asia, or a tropical island, understanding how to exchange money efficiently (and avoid common pitfalls) is a key part of travel budgeting. Here's how to get the most value from your money abroad.

1. Know the Real Exchange Rate

Start by knowing what the actual exchange rate is—the one you’d get if there were no fees or markups. This is called the mid-market rate and you can find it on:

• Google ("USD to EUR today")

• XE.com

• OANDA

• Your banking or travel app

Understanding the base rate helps you identify poor offers and evaluate whether you're being charged an excessive fee.

2. Avoid Airport and Hotel Exchange Counters

The biggest currency exchange mistake? Changing money at the airport or hotel desk. These locations are convenient—but often charge the worst rates, along with hidden service fees.

Better options include:

• Local banks in the destination country

• ATMs that are affiliated with international networks (more on that below)

• Currency exchange bureaus in city centers with transparent fee structures

If you must exchange money upon arrival, do only a small amount—just enough to get you to your hotel or into town.

3. Use ATMs Strategically

Using ATMs abroad is one of the most efficient ways to get local currency, especially if you have a travel-friendly debit card. However, it’s important to use them wisely:

• Avoid standalone ATMs in tourist areas—they tend to charge higher fees or apply poor conversion rates.

• Use bank-affiliated ATMs (often located in or next to a local bank branch).

• Withdraw larger amounts less frequently to avoid repeated ATM fees.

Make sure your bank doesn't charge international ATM withdrawal or conversion fees. If it does, consider opening an account with a bank that waives these (like Charles Schwab or Revolut).

4. Watch Out for “Dynamic Currency Conversion”

This is one of the most deceptive practices travelers face. At shops, restaurants, or ATMs, you might be asked:

"Would you like to pay in your home currency?"

Always say no and choose to pay in the local currency.

Why? Choosing your home currency lets the merchant or ATM apply their own exchange rate—usually with a hefty markup. Paying in local currency allows your bank or card provider to handle the conversion, typically at the real rate with a lower fee.

5. Use Credit Cards with No Foreign Transaction Fees

Credit cards are often the best payment method abroad—as long as they don’t charge foreign transaction fees. Many travel rewards cards (like Chase Sapphire, Capital One Venture, or Amex Platinum) waive these fees and offer competitive exchange rates.

Tips for smart card use:

• Notify your bank of travel plans to avoid blocks.

• Carry at least one Visa or Mastercard, as these are most widely accepted.

• Use credit cards for hotels, restaurants, and large purchases—but keep cash on hand for tips, markets, and taxis.

6. Exchange a Small Amount Before You Leave

While it's not recommended to exchange large sums in your home country (rates are often worse), it's wise to have a small amount of local currency—$50 to $100 USD worth—for your arrival.

This covers small needs like transit, tips, or snacks if ATMs aren’t immediately available. Use your bank, not an airport kiosk, for this exchange if possible.

7. Be Mindful of Hidden Fees

Even if an ATM or exchange service advertises “no commission,” there may still be hidden charges. These include:

• Inflated exchange rates (check against the mid-market rate)

• Service or transaction fees added at the point of exchange

• ATM surcharges for using out-of-network machines

Always ask about total fees before completing a transaction—and when in doubt, walk away and shop around.

8. Consider Travel Cards and Apps

Several companies now offer multi-currency travel cards or digital wallets, allowing you to load money, convert currency at favorable rates, and spend using a physical or virtual card. Top options include:

• Wise (formerly TransferWise) – real exchange rate, low fees

• Revolut – good for multi-currency management and daily spending

• Chime or SoFi – if using a U.S. debit card abroad

These platforms are great for tech-savvy travelers and often come with budgeting tools and real-time alerts.

9. Track Your Spending and Budget

With fluctuating exchange rates, it’s easy to overspend without realizing it. Use apps like Trail Wallet, XE Currency, or even your banking app to monitor expenses in both local and home currencies. This keeps you informed—and helps you make smart choices throughout your trip.

Your Money Should Go Further—Not Get Lost in Fees

Whether you're spending a few days in Paris or weeks exploring Southeast Asia, being smart about currency exchange helps you stretch your travel dollars and avoid unnecessary stress.

At Travel With McNellis, we not only help you book unforgettable vacations—we also guide you through the details, including financial prep. Because how you spend abroad is just as important as where you go.

Let us help you travel smarter and spend wiser. Plan your next journey with us →