Buying Euros....
Nov 20th, 2002, 04:21 PM
#4
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Buying foreign currency in the USA is often expensive. Not sure why. It is probably cheaper if you get Euros in Europe. Beware that the train station exchange is often not too good, but not robbery either. The airport is usually better, but not the best. In some countries, small exchange windows give good rates, but you have to check.<BR><BR>In the UK, I found the places near Victoria Station give good rates. Inside the station, not good rates. At Gatwick and Heathrow, the rate is not too bad, probably 2nd best to outside Victoria Station.<BR><BR>In Australia, St. George's Bank gives better rates than other banks but only if you exchange a lot of money (maybe AUD300 or more-maybe not too much for some people). The small exchange places are good for small amounts of exchange.
Nov 20th, 2002, 04:48 PM
#6
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Just one small bit of advice.<BR><BR>Be very careful if buying euros as a cash advance on credit card from money exchange places rather than an atm.<BR><BR>The money exchange will charge you their fee and you will get a double whammy in fees on your credit card bill.
Nov 20th, 2002, 06:16 PM
#9
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As usual misinformation abounds on this subject.<BR>I was in Europe for a month this summer, and used my ATM repeatedly, and with 2 different banks, and in 4 countries, one of which did not use the euro. <BR><BR>NEVER, AT ANY TIME, ON ANY ACCOUNT was there ever a flat $3.00 fee deducted.<BR>Bank of America charges me $1.50 after the second use of my ATM, regardless of amount. <BR><BR>Also, the statement that Credit Cards add on 3% is not totally true.<BR>It depends on the credit card issuer. I know from usage that cards issued by MBNA only charge the 1% that Visa charges for all conversions.<BR><BR>My Visa card that is issued through Bank of America does indeed add on the 3% extra for a conversion fee, hence I did not use it much. There is a trade off, however, because I get frequent flier miles for using it.<BR><BR>In my experience, if you buy foreign currency here at a bank, you will pay about 5% more than you will for the same currency in Europe. <BR><BR>The most expensive way is to trade travelers checks or currency at an airport exchange booth, particularly in the USA. I checked in Atlanta when the wholesale exchange rate was virtually 1 to 1, dollar to euro. To find the difference, you needed to go to the 3rd decimal point.<BR>At the airport bandit I would have paid $1.10 for 1 euro.<BR>And for 1 euro, I would have gotten about 90 cents. In theory, if you had handed the guy at the window $1.10 you would have gotten 1 euro. Walk around the airport for 5 minutes, come back, and hand the guy your euro, and you would end up with 90 cents. In two exchanges you went from $1.10 to $.90<BR>That means you lost about 18.2% in the exchange. (Boy a stock portfolio that gained 18% this year would look real good right now.) Now apply that to $1,000. You end up $180 poorer.<BR><BR>That is one reason I think buying euro denominated travelers checks is stupid.<BR>(harsh word intentional). Lets say Joe buys $4,000 of euro checks. I don't care were he gets them, he pays about 2% -- even at no fee AAA -- because the selling exchange rate is adjusted in the sellers favor.<BR>So Joe starts with an investment of $4080. He returns from Europe with 500e still in his pocket. He converts it to dollars at his bank for a mark down of 5%. For his 500e he gets $475.<BR>While in Europe, he got clipped to cash each check. Lets just estimate that at a modest 2%, another $70, 3500 e worth of checks. <BR>So his 4000 euros cost him $175.00<BR>You can do the same for about $45.00 by using bank ATMs in the nations I visited during my month.<BR><BR>By the way, I think any use of an ATM for euros is going to involve a 1% difference for conversion because all of those conversions go through Visa or Master Card, either Cirrus or Plus.<BR><BR>That beating you take on the exchange coming home is one reason I buy items at the airport. I know we ended up with a lovely Swarovski crystal piece just to unload what was left. <BR><BR>Of course the best way is to do a private transaction with a friend. Ask them to bring back their extra euros and trade at the wholesale rate. You both profit.<BR><BR>
Nov 20th, 2002, 06:16 PM
#10
Guest
Posts: n/a
As usual misinformation abounds on this subject.<BR>I was in Europe for a month this summer, and used my ATM repeatedly, and with 2 different banks, and in 5 countries, one of which did not use the euro. <BR><BR>NEVER, AT ANY TIME, ON ANY ACCOUNT was there ever a flat $3.00 fee deducted.<BR>Bank of America charges me $1.50 after the second use of my ATM, regardless of amount. <BR><BR>Also, the statement that Credit Cards add on 3% is not totally true.<BR>It depends on the credit card issuer. I know from usage that cards issued by MBNA only charge the 1% that Visa charges for all conversions.<BR><BR>My Visa card that is issued through Bank of America does indeed add on the 3% extra for a conversion fee, hence I did not use it much. There is a trade off, however, because I get frequent flier miles for using it.<BR><BR>In my experience, if you buy foreign currency here at a bank, you will pay about 5% more than you will for the same currency in Europe. <BR><BR>The most expensive way is to trade travelers checks or currency at an airport exchange booth, particularly in the USA. I checked in Atlanta when the wholesale exchange rate was virtually 1 to 1, dollar to euro. To find the difference, you needed to go to the 3rd decimal point.<BR>At the airport bandit I would have paid $1.10 for 1 euro.<BR>And for 1 euro, I would have gotten about 90 cents. In theory, if you had handed the guy at the window $1.10 you would have gotten 1 euro. Walk around the airport for 5 minutes, come back, and hand the guy your euro, and you would end up with 90 cents. In two exchanges you went from $1.10 to $.90<BR>That means you lost about 18.2% in the exchange. (Boy a stock portfolio that gained 18% this year would look real good right now.) Now apply that to $1,000. You end up $180 poorer.<BR><BR>That is one reason I think buying euro denominated travelers checks is stupid.<BR>(harsh word intentional). Lets say Joe buys $4,000 of euro checks. I don't care were he gets them, he pays about 2% -- even at no fee AAA -- because the selling exchange rate is adjusted in the sellers favor.<BR>So Joe starts with an investment of $4080. He returns from Europe with 500e still in his pocket. He converts it to dollars at his bank for a mark down of 5%. For his 500e he gets $475.<BR>While in Europe, he got clipped to cash each check. Lets just estimate that at a modest 2%, another $70, 3500 e worth of checks. <BR>So his 4000 euros cost him $175.00<BR>You can do the same for about $45.00 by using bank ATMs in the nations I visited during my month.<BR><BR>By the way, I think any use of an ATM for euros is going to involve a 1% difference for conversion because all of those conversions go through Visa or Master Card, either Cirrus or Plus.<BR><BR>That beating you take on the exchange coming home is one reason I buy items at the airport. I know we ended up with a lovely Swarovski crystal piece just to unload what was left. <BR><BR>Of course the best way is to do a private transaction with a friend. Ask them to bring back their extra euros and trade at the wholesale rate. You both profit.<BR><BR>
Nov 21st, 2002, 05:57 AM
#11
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Any fee you pay for using an ATM in Europe is one imposed by your American Bank. My bank charges no fee on out-of-country ATM use so I've never paid any fee for an ATM transaction in Europe (Ireland, Netherlands, France, Italy, Spain -- probably twenty different banks involved), though I'm charged $2.00 by each bank if I use an ATM at the bank across the street from my bank.<BR>
