What fees should I anticipate if using traveller's checks? Any advice on which way to pay?

Don't even consider Traveller's Checks. They are "yesterday's news".
Cash is King in Egypt but credit cards, whenever possible, are recommended.
Have a wonderful and safe trip.

Didn't know travellers checks still existed. Last time I used them 25 years ago (Europe) the only place that would accept them was the Am Exp office. Not all that convenient and they added a fee to cash their own checks!!!

Just curious, when was the last time you used them?

regards - tom

IF you bring TC's to Egypt, banks will cash them as long as you have your passport there for I.D. Some banks will also require that you show them the receipt, which of course AMEX recommends NEVER carrying with the TC's - so yes, it is more difficult to use them in Egypt, but not impossible.
There are a couple AMEX offices here that will cash AMEX TC's for you in either EGP or USD for no additional fee. If you have a TC worth $100, you will get $100 for it. Really.

No other business is going to accept them though.
ATM's are plentiful and the choice for cash of most tourists these days I think.

In a trip to Egypt in Sept 2010 there were signs in one or two of the 5 star hotels I stayed in that said traveller's cheques not accepted. I took $1000 USD and cashed it at different hotels into local currency. Some didn't want to change too much but most were happy to change something every day. The Mena House Oberoi in particular, was excellent as they very happy to cash a couple of hundred at a time and would give you tons of 1 coins and small notes for toilet visits!

I would take a number of different ATM cards. My husband and I carried a number of different ATM and credit cards but in the end only one of ours would work (unfortunately it was mine so I had to use all mine! lol). I was reluctant to log on to a bank website on the hotel computer to transfer some money to an available ATM account but I borrowed our guides laptop and felt safer doing that.

The ATM's dispense, from memory, up to $3000 LE at a time. A decent amount.

Cash, we carried 400 $1.00 bills and used them all in the 10 days we were there!!