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Currency exchange: here or there?

Is it better to exchange dollars for pounds here in the US or wait until I get to London? Also, where will I get a better rate: a bank, Thomas Cook or some place else? I understand there is currency exchange available at Heathrow, but I assume (like all airports) the prices are higher. Any help would be appreciated. Thanks!

If not using your ATM card, the best rate in the UK is at Post Offices - better than banks or T.Cook's. (not many people know that!) Occasionally they even do commission-free.They can't always supply large amounts without notice. Thos. Cooks re-exchange your unused currency free.(keep your receipt).Their rates are reasonable. Best to use an ATM card. Be aware of ripoff bureaux which have signs claiming "0% commission on buying foreign currency".You are buying LOCAL currency, these places actually charge you 9.9%.

My strategy has been this: 1. Before leaving home, I buy a little of the currency of the nation I visit first. I do this so I don't have to hunt up an ATM before taking a cab or buying something to eat. 2. I carry two different credit cards and use them where practical because the exchange rate has proven so far to be the best. 3. For additional currency, I use the ATMs. Better exchange rate. 4. I carry a little US currency and a few hundred $$ in travelers checks which I use as an emergency backup. For example, once I had just arrived in the Zurich airport, my train was leaving in a few minutes, the ATM was down, I wanted to buy something from a shop where credit cards were not accepted, and I did not have enough Swiss currency. So I exchanged a check at the bank window. Compared with overseas ATM rates, I find that purchasing foreign currency from my local bank costs me about 5% more. Your situation might be different. I do not suggest cash advances; that is expensive money!!

I agree with the above posts, but more simply put to answer your question: Put the total amount you want to exchange into your checking account before you leave. When you arrive at the London airport, go to the nearest ATM insert your card and take out however much English money you want. I guarantee you there will be an ATM working at the airport, not hard to find after coming out of customs, and it will absolutely be the best exchange rate you can get anywhere. Oh, you might have to pay a fee to your bank of up to about $1.50, even if you are taking out a couple of hundred pounds, but that is a whole lot less than any other fee or exchange commission would be. Please realize we are not talking about "borrowing" money from your credit card at an ATM, but rather withdrawing money from you checking account.

Hey Bob and Frank, Thanks for the advice! I called my bank and as long as my ATM card has a VISA logo, it will work in virtually all ATM's in London. Even better, the exchange rate they use is the rate at the day and time of the transaction with no commission or fee. The only fee may be a $1.50 ATM usage fee, but for some banks, they may waive the fee. They also offered some advice: call your bank a week or so before your trip to let them know you will be out of the country and using your debit or credit cards. Out-of-country charges are red lights for the fraud units at the banks and if there are alot of charges, they sometimes unilaterally cancel your account out of concern that the card was stolen and taken out of the country. All you need to do is tell them your departure and return date and the the countries you plan on visiting. That way they know (unless you call and report the card stolen) that the charges are legit.

You are right : I've seen posters here complaining that their US accounts were stopped as soon as they started using them abroad! It seems incredible but it's not that uncommon. Your point about phoning first is therefore spot on.

Hi. I was wondering do most ATM cards work abroad? I called my bank and the rep. said my card should work abroad but once in a while people call and complain there cards are not working overseas. However, he could not elaborate on why they had problems? Does anyone know when I might encounter a problem using an ATM in London? Or is it rare to encounter a problem? THanks.

Whatever you decide, don't use Thomas Cook. I've had nothing but trouble with them. They also sometimes offer "commission free" trades, but the fine print is that you have to book a holiday with them.

bob, ATMs for all your cash needs, credit card for everything else! Worked like a charm for us. ATMs are everywhere in London (the whole of UK really)! Have a wonderful trip!

Bob, Good advice here! Use ATMs and credit cards. If you do take any travelers checks, make sure you buy them issued in UK pounds (not dollars) so you can spend them directly, without exchaning them at poor rates. Also, on credit cards: check with your card issuer to see if they add a foreign transaction fee (or currency conversion fee, or other euphemism). If they do, get another credit card! The British Airways VISA card does not add this type of fee, to my knowledge. Regards, David White LET'S TAKE THE KIDS TO LONDON--A FAMILY TRAVEL GUIDE http://www.KidsToLondon.com

Stacy: ATMs don't work for a variety of reasons, some mechanical, some deliberate (offline for batching), some incidental (out of money, etc.). Cards don't work for a variety of reasons: your bank is offline; the issuer's (Visa, Mastercard, etc.) computers are offline or broken (I have a horror story about President's Day weekend 1993); the magnetic strip on the card isn't being read; the keypad is broken and not reading the PIN number you've punched in. That's why I have a checking account at two different banks, one has a Visa ATM, the other, Mastercard. I have a Visa credit card from a third bank, and a Mastercard credit card from a fourth bank. I don't panic if one card in one ATM doesn't work; I try another card or another machine. My westcoast banks batch around 1am PST - which is 10am in Paris, so I make sure I get money the night before. If the ATMs everywhere are busted, I can use my cards in banks and exchange bureaux for a 'cash advance' (even though it's from a debit card, it works!). I disagree with advice on TCs - when you buy them in foreign denominations, you pay an exchange rate then. If you don't use them all, you now have to SELL them for U.S. currency, another loss. If you buy $ for $ TCs in $US, exchange what you need in Europe and pay the rate, you can deposit the leftovers into your checking account, pay bills, buy groceries at home, $ for $. If you decide to go to Paris for a day from London, you cash your $US TCs for francs; if they are in GBP (remember, you lost money on the exchange from $ to GBP TCs), you now have to exchange AGAIN (another loss) into francs.