Why you should never exchange money at an airport

The costly mistake tourists keep making

Airport exchange desks know that travellers are often tired, in a hurry or simply looking for the quickest way to get local currency, meaning people are less likely to stop and compare rates before handing over their money.

One of the biggest traps is the seemingly attractive “no commission” offer. While you might not be charged a separate fee, that does not mean the exchange is free. Instead, the company can make its money by giving you a much worse exchange rate than the actual market rate.

In some cases, the difference can be as much as 10-15%, meaning you could lose a significant amount simply by exchanging your money at the airport. The less favourable rate allows the exchange company to pocket the difference without having to advertise an obvious transaction fee.

How to avoid losing money

The easiest way to avoid an expensive airport exchange is to plan ahead rather than waiting until you arrive.

Ordering currency through your bank before travelling can help you secure a better rate while avoiding the rush of finding an exchange desk after you land.

Using a travel-friendly debit or credit card is another option. Look for one with no foreign transaction fees, as some also offer cheaper or free cash withdrawals abroad.

Bank-owned ATMs are generally a better choice if you need cash while travelling, as they tend to offer more competitive rates. It is best to avoid independent machines in busy tourist areas, where fees can be higher.

Finally, downloading a currency converter app lets you quickly check the current rate and see whether the deal you are being offered is actually worth it.