Airport Currency Exchange: Is It A Good Idea?

When travelling to a foreign country, you may be tempted to exchange your currency at the airport. However, exchanging your currency at an airport is not a good idea. While it may be convenient, it comes with hefty fees that make them a costly option.

You’ll need to use the local currency when in another country. Since the airport currency exchange rates are high, you need to find a cheaper way to exchange your money to experience the local life. So, what is the best place to exchange your currency?

In this article, we will look at some of the reasons why airport currency exchange shops and kiosks are not the best places to exchange money. You’ll also get to learn where to find the best currency exchange rates when travelling.

Let’s get started!

Why You Should Not Choose Airport Currency Exchange

When travelling to another country, you will find it easy to exchange your currency at the airport. While the airport currency exchange providers can get the job done quickly, they won’t offer you a good deal—they offer the highest currency exchange rates.

Here are the reasons to avoid currency exchange shops and kiosks in airports.

1.    Poor Exchange Rates

Since there’s low competition among currency exchange providers at airports, no one is ready to offer competitive exchange rates. Instead, they’ll inflate the currency exchange prices to take advantage of unsuspecting clients—you don’t want this to happen to you.

Since foreign currency exchange rates fluctuate with changes in the financial market, each currency exchange company at the airport can update its rates. However, the companies may operate on large “spreads” to reduce the risks of losses.

2.    Unnecessary Fees

When you exchange money at the airport, you’ll likely pay unnecessary fees. Like other businesses operating at the airport, currency exchange kiosks also pay facility fees to the airport authorities. Since they incur high operating expenses, they charge high fees.

The currency exchange providers at the airport will pass the high operating costs to you in the form of higher currency exchange rates. The higher prices can come in various forms, including a “service fee” for offering the exchange services.

3.    Safety Concerns at the Airport

Most travellers choose to exchange their currencies before travelling due to many safety concerns. Converting any amount of money at a busy airport can expose you to more threats. Besides, you may not be in a position to make wise financial decisions after a long trip.

When exchanging money at a counter that’s outside the terminal, everyone walking along the streets will see you. You may become a target for theft. Consider changing your currency to a company that guarantees the fund’s safety and yours.

4.    Limited Currency Selections and Amounts

Nothing is more disappointing than walking up to a currency exchange counter at the airport and finding out that they don’t accept your currency. Some counters may not offer the foreign currency you need. Alternatively, only a limited amount of the currency may be available instead.

Exchanging currencies at airports becomes even more costly when you are travelling to a less commonly visited country. If that’s the case, consider swapping your money at a reputable company like Knightsbridge FX before heading to the airport.

Where to Exchange Your Currency during an International Trip

The safest and most convenient way to exchange your money is before you travel to another country. There are various currency exchange options to consider, and each has its pros and cons. Here are the best alternatives to airport currency exchange.

1.    Specialist Currency Exchange Provider

The best way to exchange your currency is by opting for an agency that specializes in currency exchange services, like Knightsbridge FX. The currency exchange providers offer various exchange options online. You can even exchange your money from home.

At Knightsbridge FX, we allow travellers to create free accounts online and exchange currencies at affordable rates. We offer consistent bank-beating rates to help you save hundreds of dollars on each transaction. Besides, your funds’ security is guaranteed.

2.    Regular Credit Union or Bank

Most banks and credit unions also offer currency exchange services for their clients. If you plan to convert your money at a bank, check if your local bank offers the currency you need to ensure it’s convenient. Various banks charge different exchange rates.

When exchanging your money in banks, be aware of the high fees and exchange rates. Most banks usually inflate exchange prices to cover their high operating costs. Besides, banks also include hidden fees in their quotes, making them costly.

3.    Currency Exchange at a Local ATM

You can also withdraw local cash from an ATM at your destination. But, before you go for this option, ask your regular bank if they have partnered with any financial institution that offers ATM services in your destination. If so, you’ll get low exchange rates.

Banks that are members of the |Global ATM Network usually work together to give their clients fee-free ATM withdrawals when travelling. If your bank is not in the network, check the international withdrawal fees you’ll pay when using the ATM.

4.    Find a Currency Exchange Provider in the City

There’s no doubt that there will be several currency exchange providers in the city you plan to visit. Instead of exchanging your money at the airport, you can instead opt for a reputable currency exchange provider in the city that offers better foreign exchange rates.

You will realize that the exchange rates offered in the city are relatively lower than the airports. However, you should try as much as possible to avoid exchanging your money in tourist-heavy spots. Some currency providers may exploit unsuspecting tourists.

The Bottom Line

Airport currency exchange can be very costly, and you should consider it as the last resort. The good news is that there are better ways to get foreign currency without paying exorbitant fees. An excellent alternative is a company specializing in foreign exchange and offers the lowest rates, such as Knightsbridge Foreign Exchange.