Currency Exchange Fee Calculator
Calculate the hidden cost of currency exchange — the difference between the mid-market rate and what banks and bureaux de change actually give you.
Currency Exchange Guide
The Hidden Cost of Currency Exchange
The mid-market rate (also called the interbank rate or spot rate) is the midpoint between buy and sell prices on currency markets — it is what you see on Google or XE.com. No retail currency exchanger gives you this rate. Banks typically add 3–5% above mid-market. Airport bureaux de change: 7–12%. High street bureaux (post office, Travelex): 3–6%. Fee-free travel cards (Starling, Monzo, Wise debit): 0–0.5%. On a £1,000 exchange, the difference between an airport bureau (10% markup) and a Wise ca
Fee-Free Travel Card Options
The best options for spending abroad in 2024: Starling Bank: no transaction fees, no ATM fees on any amount abroad, uses Mastercard rates. Monzo: no fees up to £200/month ATM withdrawals abroad, then 3%. Wise debit card: uses mid-market rate with a small conversion fee (typically 0.5%), unlimited ATM withdrawals up to £200/month free. Chase UK: no foreign transaction fees, 1% cashback on most purchases. All are better than exchanging cash at an airport or using a standard UK bank card abroad (ty
Cash vs Card Abroad
For most destinations, using a fee-free card is cheaper and safer than carrying cash. Cards are also more convenient — you pay the prevailing rate at time of purchase without needing to guess how much cash to bring. Exceptions: small markets, rural areas, some budget accommodation, tipping culture (where small cash is expected), and destinations where card acceptance is limited (parts of Southeast Asia, Eastern Europe, Central America). For these, carry some local cash from a fee-free ATM withdr
Dynamic Currency Conversion — Always Decline
When paying by card abroad, you may be offered the option to 'pay in pounds' instead of local currency. This is Dynamic Currency Conversion (DCC) and should always be declined. The merchant's DCC rate is typically 3–7% worse than the network rate. Always choose to pay in the local currency — your bank or card provider's rate will be applied, which is almost always significantly better. The DCC offer is pure profit for the merchant and terminal provider at the cardholder's expense.
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