Currency Exchange
 

What is the cheapest way to exchange USD for foreign currency here in the US? Most banks seem to knock about 5% off the market exchange rates. I'd like to take advantage of the recent surge in the dollar's strength before planned trip to Switzerland in June.

I'm confused. Are you suggesting that you have inside information that in the next three months the dollar is going lower than it is now against the Swiss Franc? If so, you could forget about saving money on a bit of currency exchange and make a fortune instead playing the lotto, since you have such insight into the future.

In any case, I personally don't know of anywhere where it won't cost you a good three or more percent to get the Swiss Francs in the US, so I would just wait till I got there and use an ATM card which only cost you at most 1%, thereby saving 2% or more from getting them in advance.

I am not aware of any place that is cheap to purchase foreign currency. Banks and exchange bureaus have fees and often not-great exchange rates on top of that.

That's why *everyone* waits and uses an ATM card upon arrival to get euro, CHF, etc. or pays with their charge card.

If there was a "cheapest" way, believe me all the posters here would have figured it out and be doing it.

One more voice for not trying to be an arbitrageur and for using an ATM card in Switzerland.

((I))

I agree w/Patrick, Suze and Ira. Unless you know with all certainty that the dollar is about to really tank, you should not buy all of your currency here. How do you know the dollar won't get stronger between now and then? If it does, you will lose money for buying now. Even if it stays the same or drops slightly, you will still lose money by paying the ridiculous fees that banks here charge for currency exchange.

If it gives you peace of mind, buy $50-$100 worth before leaving home, just to get you started when you arrive. I don't do that anymore, but some people like to have money in their pocket when they get there.

If you look and any thread on this board regarding currency exchange, you will see that every savvy and knowledgeable traveler uses the ATM and would not even consider buying very much currency in the US.

I suppose if you have some spare shirts, you could open an account and buy a futures contract. I've not known any where the foreign currency is actually delivered, but if you a prescient enough to buy a currency that soars, you can get the dollar equivalent of the currency on the date the contract expires, or you sell it.

I would agree with the other posters that it is best to use ATMs after you arrive at your destination. However, to answer your original question, the best place to exchange currency is at an American Express office. They offer lower fees and a better exchange rate than banks or any of the other foreign currency exchange companies.