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Many companies now offer really competitive exchange rates and commission free currency, with some also offering free delivery if you order online.
However, with exchange rates and charges varying significantly between travel money providers, it pays to research the best commission free currency exchange rates before you buy.
These days, there are lots of places to buy travel money. From your local supermarket to your High Street bank or travel agent there are dozens of retailers and online companies offering no commission currency exchange.
A commission free foreign currency service allows you to change sterling into euros, dollars or other foreign currency without paying any commission. This can help you save money when you change your holiday cash but you do need to be careful.
When many people undertake a tourist exchanges rates comparison they deliberately research the companies that offer a commission free currency exchange.
The assumption is often that companies who don't charge commission offer a better deal than other travel money providers.
However, this is not always the case. This is because the exchange rate on commission free currency may be significantly worse than it is with other providers. So while you may not pay any commission, you may get significantly fewer euros or dollars for your sterling.
So, when you compare the best foreign currency exchange rates, look at both:
When you're looking to buy travel money, always take into account both the exchange rate and the commission. Depending on the amount of money you're looking to exchange it can be better to pay a commission and benefit from a superior exchange rate.
In addition, a no commission currency exchange could also work out more expensive if there are other fees that apply.
For example, you may have to pay for delivery of your currency if you order online. Additionally, the provider may make a 'buy back' charge in order that you can sell any unused currency back to them when you return.
While a commission free foreign currency service is generally a good thing, it is important that you compare all the above factors before you buy.
Compare the exact amount of foreign currency you'll get in return for your cash and go with the travel money company that gives you the most currency for the amount you want to exchange.
Checking exchange rates is less fun than packing your suitcase, but making sure you get a good deal on your travel money before you jet off on holiday could buy a couple of extra cocktails on the beach! Here's our guide on getting the best deal.
What is the best way to spend overseas?
How much money do you need to go travelling?
What can you do with leftover travel money?
How to get the best deal on travel money
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