currency-exchange-blog

Currency Exchange Fees and How to Avoid Them

Travelling abroad or sending money overseas? Currency exchange fees can quickly add up - and often, they're hidden in places you might not expect. The good news is that with the right approach, you can keep more of your money in your pocket. At Sterling FX, we specialise in transparent, competitive currency exchange so you know exactly what you're paying.

Here's a breakdown of the most common fees - and how to avoid them.

1. Understand What You're Being Charged

Before you travel, check your bank or card provider's foreign exchange rates and fees. Many UK banks charge a percentage fee (often 1.5%-3%) on overseas purchases or withdrawals, plus an unfavourable exchange rate. These costs can be higher than you realise.

Sterling FX Tip:

We publish competitive, commission-free rates online so you can see exactly what you'll get before you exchange. Whether you collect in London or choose home delivery, there are no hidden surprises.

2. Avoid Using Airport or Tourist Exchange Services

Airport kiosks and tourist hotspots often have poor exchange rates and higher fees. You'll usually get far less for your pounds than if you plan ahead.

Sterling FX Tip:

Order your travel money online in advance with us. You can lock in a great rate today and choose a collection date or home delivery that suits you.

3. Be Careful with ATMs Abroad

Withdrawing money from overseas ATMs can cost more than you expect - you may face both your UK bank's foreign usage fee and a local ATM fee.

Sterling FX Tip:

Take the cash you need with you. Sterling FX offers next-day delivery for most currencies, so you can arrive fully prepared without relying on costly ATMs.

4. Always Pay in the Local Currency

When paying by card abroad, you may be asked whether you want to be charged in GBP instead of the local currency. This is called dynamic currency conversion, and it often gives you a worse exchange rate.

Sterling FX Tip:

If you're using a card, always choose to pay in the local currency to avoid unnecessary mark-ups.

5. Watch Out for Multiple Small Transactions

Some banks add a minimum fee for each transaction abroad, meaning several small purchases can cost more in fees than one larger one.

Sterling FX Tip:

If you plan to make lots of small purchases, carry cash for them. We can provide smaller denominations so you don't have to overpay.

6. Compare Before You Exchange

Rates can vary significantly between providers. Don't assume your bank will always give you the best deal.

Sterling FX Tip:

Our rates are updated daily and compared against the market to ensure you're getting great value. You can check them instantly on our website before placing your order.

7. Plan Ahead for Big Purchases

If you're making a significant payment abroad, even a small percentage fee can mean a large extra cost.

Sterling FX Tip:

By arranging your currency through Sterling FX, you can secure a strong rate for large amounts and avoid percentage-based bank fees.

Final Word

A little planning can go a long way in avoiding unnecessary currency exchange fees. At Sterling FX, we've been helping customers get more for their money for over 40 years, offering clear pricing, competitive rates, and a range of collection and delivery options.

Call to Action:

Check today's rates and order your currency with Sterling FX - competitive, commission-free, and with no hidden fees.

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Sterling Consortium Limited is registered in England and Wales under company number 05850613.

Sterling Consortium Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payments Institution (API Firm reference number 987941).
Furthermore, we are governed by HM Revenue and Customs as a Money Service Business (MSB registration no. 12120971).
The actual provision of travel money is not regulated by the FCA.

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