Best Way to Convert Currency With Low Fees

The difference between the best and worst exchange methods can cost you 10-15% of your money. On a $5,000 exchange, that's $500-750 lost to fees. Here's how to keep more of your money.

The Real Cost of Currency Exchange

Most people focus on "commission" but miss the bigger cost: the exchange rate itself. A service advertising "0% commission" often gives you a rate 5-10% worse than the real market rate. That's where they make their money.

Ranked: Cheapest to Most Expensive

🥇 1. Wise (TransferWise) — 0.3-0.6%

Best for: International transfers, getting the best rate

• Uses the real mid-market exchange rate
• Small, transparent fee (usually 0.3-0.6%)
• Multi-currency debit card available
• Great for sending money abroad or travel spending

🥈 2. Revolut — 0-1%

Best for: Frequent travelers, small amounts

• Free exchanges up to a monthly limit (varies by plan)
• 0.5-1% fee over the limit or on weekends
• Multi-currency card with great app
• Watch out for weekend markup (1%)

🥉 3. No-Foreign-Fee Credit Cards — 0-1%

Best for: Spending abroad, online purchases

• Cards like Chase Sapphire, Capital One Venture have no FX fees
• Use Visa/Mastercard wholesale rates (very close to mid-market)
• No need to carry cash
• Rewards/points as a bonus

Tip: Always choose to pay in the local currency when asked — never your home currency (that's called Dynamic Currency Conversion and adds 3-5% fees).

4. Your Bank — 2-5%

Best for: Large transfers if you can't use Wise

• Rates are 2-5% worse than mid-market
• Often charge flat fees ($15-50) on top
• Convenient but expensive
• May be only option for very large amounts

5. ATMs Abroad — 3-5%

Best for: Emergency cash only

• Your bank's FX fee (1-3%) + ATM fee ($3-5)
• Local ATM may charge additional fee
• Use Wise or Revolut card at ATMs instead
• Decline the ATM's "conversion" offer — always withdraw in local currency

🚫 6. Airport/Hotel Exchanges — 8-15%

Best for: Never. Avoid completely.

• The absolute worst rates anywhere
• "0% commission" but terrible exchange rates
• Convenient location = expensive convenience
• Only use if you have literally no other option

Quick Decision Guide

1. Sending money abroad? → Use Wise
2. Traveling and spending? → No-FX-fee credit card or Revolut
3. Need foreign cash? → Use Wise/Revolut card at ATM
4. Large transfer (>$10K)? → Compare Wise vs bank wire
5. At the airport with no cash? → Use your credit card, not the exchange booth

5 Tips to Save More

1. Compare rates before you go — Check our Fee Estimator
2. Avoid "dynamic currency conversion" — Always pay in local currency
3. Exchange larger amounts at once — Reduces per-transaction flat fees
4. Get a travel card — Wise or Revolut cards save money on every transaction
5. Never exchange at airports — Even a bad bank rate beats airport rates

The Bottom Line

For most people, the best combination is:

• Wise or Revolut card for everyday spending and ATM withdrawals
• No-FX-fee credit card for larger purchases and backup
• Wise transfer for sending money internationally

This setup means you'll never pay more than 1% on any currency exchange — compared to 5-15% that most people lose.