Changing Forex (Cash for Cash) Cheaper at Origin or Destination?

External question — Personal Finance Stack Exchange Author: Della Original post: https://money.stackexchange.com/questions/164541 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I know there are factors like volatility, but ceteris paribus, if I am travelling from country X to country Y, then getting Y's currency is more cost effective at at a money changer at X or at Y? In this instance, I am travelling from Singapore to Hong Kong, so where do I change? Also, in general, for future reference on other countries. The question is also somewhat I out of academic curiosity, as in what factors can influence the difference between rates seen in two countries? I understand, in general, convenient locations (such as airport, my hotel desk) will give a generally worse rate than a business in some obscure back alley in the downtown, but I am talking about the general difference (if any) between country pairs, not shops within a country.

External answer — Personal Finance Stack Exchange Author: keshlam Original post: https://money.stackexchange.com/a/164568 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. To repeat what I said in the comment; it depends. Exchange rates can change at anytime, and fees charged by foreign exchange desks may differ from desk to desk, never mind country to country. I don't think you can count on one or the other being the better choice. Personally, I generally avoid cash these days and count on credit cards being accepted. I do convert some cash to handle transactions that cannot be put on the card, but usually not that much since I would rather not carry much cash. If I need more, then in the first world and much of the second I can go to a bank and do an ATM withdrawal from my home account (or cash advance on the credit card) in the local currency, at whatever exchange rate and fees they happen to be charging. When returning, I either keep the foreign cash if I expected to go to that country again sometime soon, or use most of it as part of paying for my hotel bill and burn off the rest buying food and/or souvenirs at the airport; all of these are strategies to avoid having to pay exchange fees again when I get home. This may not be the optimum strategy financially, but it certainly simplifies matters. For me, reducing stress is worth paying a small amount. Of course if you are doing something that requires you carry a large amount of cash, these suggestions won't help you. But frankly, I can't think of many good reasons for carrying a great deal of cash these days that aren't illegal. International banking works pretty well.

External answer — Personal Finance Stack Exchange Author: GazEcc Original post: https://money.stackexchange.com/a/164590 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. In my experience, YMMV, it is always wise to buy in the country that uses the currency you are trying to hand over. Recently, while in the United States, someone in a forex was more than happy to insult me with a € -> $ price that nearly echoed the inverse of actual market rate. Had I purchased in Dublin I would have been taken advantage of, but not nearly as badly. The general rule is ForEx want to get RID of the foreign stuff, not buy it. Which I guess makes sense.

External answer — Personal Finance Stack Exchange Author: Michael Shaw Original post: https://money.stackexchange.com/a/164591 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. There are two main ways in which you pay for the exchange of currency. There will be a difference in the bid/buy prices so that the exchanger has a margin of profit in the process, and the exchanger may also have a commission or transaction fee that they also apply to the transaction as well. The place of last resort to exchange money is at the foreign exchange at the the airport. In general, I tend to use a cash machine on arrival in the country to obtain local currency. If you have bank accounts in both countries, then there are companies that can transfer the money for you cheaply (certainly cheaper than an international bank transfer), but overall - arriving in the country, and walking up to a cash machine and withdrawing the local currency is often the simplest approach. Different local banks will have different transaction fees, but you cannot be sure that a bank ATM offering a lower fee is not using a wider spread on the exchange rate. Unless you are talking significant sums of money (e.g. 1 months income) the savings available by shopping around are not going to make enough of a difference to be worth your effort. However, consider the risk of being in possession of large volumes of cash in a foreign country, where you may not be as familiar with the local warning signs of a potential robbery.