Currency costs are mostly avoidable once you know where they hide. None of this requires being an expert — just a few habits that keep more of your money.
"Commission-free" and "no fees" describe only part of the picture. The number that matters is how much of the target currency you actually receive for your money. Work that out for each option and compare — the winner is often not the one with the loudest "free" claim. Use the mid-market rate as your reference point.
Airport bureaux de change and hotel desks consistently offer some of the poorest rates, because they rely on convenience and a captive audience. Leaving currency to the last minute at the airport is one of the most expensive choices you can make. Plan ahead instead.
A growing category of travel and multi-currency cards and accounts charge little or nothing above the mid-market rate for overseas spending and ATM withdrawals, at least up to monthly limits. For regular travellers or anyone spending in multiple currencies, these can be dramatically cheaper than a standard debit or credit card, which often adds a non-sterling transaction fee on every purchase.
Sending a meaningful sum overseas — property, family support, paying an invoice — is where the spread hurts most, because it scales with the amount. Dedicated international money-transfer services typically quote far tighter spreads than high-street banks. Always confirm the rate and any fee before you commit, and compare the amount that will actually arrive.
As covered in our guide on why bank rates are worse, always choose to be charged in the local currency when a machine or website offers you the choice. It is one of the simplest ways to avoid an unnecessary markup.