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The best exchange rate for travel money usually comes from comparing the total you receive in foreign currency, after all fees and commission, across several providers, rather than trusting a headline rate. As a rule, ordering ahead online or using a fee-free travel card tends to beat airport bureaux, which are often the poorest value. This guide explains how to compare options, whether the Post Office or supermarkets are good value and when ordering online makes sense.
Exchange rates and fees change constantly, so this guide does not quote specific rates. Use a comparison tool and check each provider’s current terms before you buy. This is general information and not financial advice.
How to compare travel money properly
Looking at the exchange rate alone can be misleading. To compare like with like, check:
- The rate: the actual rate you are offered, compared with the mid-market rate you can see on a currency converter.
- Commission and fees: some providers charge a flat fee, a percentage or fees that apply below a certain order size.
- Delivery or collection charges: ordering online may add a delivery fee unless you collect in store or spend over a threshold.
- Minimum and maximum order values: some providers have limits that affect small or large orders.
- Buy-back terms: if you have cash left over, check how much you will get when you sell it back, as this is often at a worse rate.
The simplest way to compare is to ask each provider how much foreign currency you would receive for a fixed amount of pounds, including every fee. The highest amount wins.
Is the Post Office good value?
The Post Office is convenient, because it has branches across the UK and offers a wide range of currencies, with online ordering and collection in store. It can be a sensible choice if you want to pick up cash in person or need a less common currency at short notice.
Whether it is the best value depends on the day and the currency. It is not always the cheapest option, but it can be competitive for some orders, particularly with online ordering, collection or promotional offers. Compare its quote with other providers before you commit, and check for delivery charges, minimum order values and any discounts for certain amounts.
Points in its favour:
- Easy to find, with many branches.
- Wide currency range, including less common currencies.
- Option to order online and collect in store, which can be useful if you need cash quickly.
Points to watch:
- Rates may be less competitive than specialist online providers.
- Fees or delivery charges may apply to smaller orders.
- Stock of some currencies may be limited in smaller branches, so order ahead.
Are supermarket rates better?
Some supermarkets offer travel money services, and these can be competitive, but it depends on the day, the currency and the provider. They can be convenient if you are already shopping, and some offer click and collect. Shopping around is still essential.
- Check the rate and fees on the day. Supermarket rates may change daily.
- Look at the collection method. You may need to order ahead and collect in store.
- Check the order limits. Minimum and maximum amounts may apply.
- Look at loyalty benefits. A loyalty scheme may offer a better rate or bonus points, but compare the final amount, not just the perks.
The same rule applies to supermarkets as to any provider: do not assume they are cheapest, and compare the total amount of foreign currency you receive.
Should I order online?
For many travellers, yes. Ordering online lets you compare several providers from home and often gives better rates than airport or high street bureaux. Many online services also offer free delivery above a minimum order size or free collection from a local branch.
Benefits of ordering online
- Easy to compare multiple providers using comparison websites.
- Often more competitive rates than walk-in bureaux.
- You can lock in a rate ahead of your trip.
- Delivery to your home or collection nearby is often available.
Things to check
- Delivery times, which may take several days, so order well before you travel.
- Signature requirements for delivery.
- Fees for delivery on small orders.
- Whether the provider is authorised and regulated. Look for the regulator details on the website.
If you are travelling soon and cannot wait for delivery, collecting in store can be a good compromise.
Other ways to pay abroad
Cash is only one option. Many travellers use a mix of cash and cards.
Travel cards and fee-free debit or credit cards
Some prepaid travel cards and bank cards are designed for use abroad, with low or no foreign transaction fees. They can offer rates close to the mid-market rate, which is often better than cash. Check:
- Fees for using the card abroad, including ATM withdrawals.
- Fees for loading the card and any inactivity fees.
- Limits on spending and withdrawals.
- Whether the card is accepted in your destination.
Using ATMs abroad
Withdrawing local currency from an ATM can be good value, but fees vary by bank. Use ATMs in banks or other secure locations, and avoid machines that look tampered with.
Always pay in the local currency
When you use a card abroad, you may be asked whether you want to pay in pounds or the local currency. This is known as dynamic currency conversion. Choosing pounds usually means a poor exchange rate, so choose the local currency whenever possible.
What to avoid
- Airport bureaux: they often have the worst rates and highest fees because they rely on convenience.
- Hotel exchange desks: these are also generally poor value.
- Street exchange booths: avoid unlicensed or unofficial exchange offers.
- Changing too much: getting more than you need can leave you with leftover currency and poor buy-back rates.
- Relying on one payment method: carry a back-up card and keep it in a separate place.
How much cash should I take?
This depends on where you are going. Some destinations are heavily card-based, so you may need very little cash, while others still rely on cash for taxis, markets and small cafes. Look up local payment habits, take enough for the first day or two, and then use ATMs or cards for the rest. Keep your money in different places and carry only what you need each day.
Protect your money while travelling
- Tell your bank where you are going if they require it.
- Keep cards and cash in separate places.
- Do not leave cash in hotel rooms unless there is a safe.
- Check your policy for cover for lost cash or cards. Our travel insurance guide explains what is usually covered.
If you are planning a holiday, our guides on city breaks, cheap holidays and holidays from Gatwick may help you plan your budget, and our car hire guide explains deposits and payment cards.
What hidden costs should you look out for?
The headline exchange rate is only part of the picture. Check for commission, delivery or collection fees, minimum order amounts and any charge for buying back leftover currency. Some providers advertise no commission but build their margin into a weaker rate, so compare the final amount you would receive for the same sterling total. Always check the terms on the provider’s own website, as rates and fees change often.
A simple comparison checklist
- Note the exact amount of foreign currency you would receive for a set sterling amount.
- Add any delivery, collection or card fees.
- Check how long the rate is held after you order.
- Look at the buy-back terms for unspent cash.
When is it sensible to take cash and when to use a card?
Many travellers carry a small amount of local cash for arrival, taxis, tips and small shops, and use a card for larger purchases. If paying by card abroad, you may be offered the choice to pay in sterling or local currency. Check the terms of your card, as paying in the local currency is usually the better option, but confirm with your provider. Keep cards and cash in separate places, and tell your bank about your travel plans if it asks you to.
Remember that money is only one part of trip planning. See our travel insurance guide and cheap holidays page for more ways to keep costs under control. This article is general information and not financial advice.
Travel money exchange FAQ
Is it cheaper to buy currency in the UK or abroad?
It depends on the currency and provider. Buying some currency in advance gives you peace of mind, but you can also use cards and ATMs abroad if the fees are low.
When is the best time to buy travel money?
Rates fluctuate. Some people buy in stages to spread the risk, while others lock in a rate when they feel it is favourable. Nobody can predict exchange rates reliably.
Can I use pounds abroad?
In some tourist areas you may be offered the option to pay in pounds, but the exchange rate is usually poor. Use the local currency instead.
What should I do with leftover currency?
You can keep it for your next trip, sell it back to a provider or donate small amounts to charities at the airport. Buy-back rates are often lower, so try not to over-order.
Are exchange rates on Google accurate?
They show the mid-market rate, which is a useful benchmark. You will not usually get exactly this rate as a customer, but it helps you judge whether an offer is fair.
Is it safe to order travel money online?
Use well-known, regulated providers and check the delivery terms. Avoid unfamiliar websites and never share more personal information than necessary.
Final thoughts
The best deal for travel money is the one that gives you the most foreign currency for your pounds after fees, delivered in a way that suits your timing. Compare several providers, avoid airport bureaux, use local currency when paying by card and keep a back-up payment option for emergencies.