Plan ahead and make a budget. Decide how much money you are willing to spend and stick to it. Only exchange the exact amount of money in your budget.
Visit websites specializing in foreign exchange. There are several sites that have foreign exchange rates updated on a daily basis. Some examples of these websites are Oanda and XE (see Resources). The U.S. Department of the Treasury also has exchange rates updated on a quarterly basis.
Research the policies for foreign exchange in the country you are visiting. According to the FDA, "Each country has their own rules regarding currency exchange. Some countries will exchange currency only within the confines of their country." For example India and Korea only allow money to be exchanged within their countries.
Research several local banks and credit unions in your area. Contact as many financial institutions in your area as you can to get the best exchange rates for the currency you are interested in. Tally the results, including fees and any additional charges, to determine the institution with the best rate.
Use your credit card to access a rate that's better than a cash exchange when buying goods abroad. In general, credit card companies only add one percent to purchases as a fee when processing foreign currency. You will save money because this is better the two-to-five percent fees that most banks charge to exchange currency.
Use your debit or ATM card to withdraw money in the foreign country. Even with fees from using an ATM machine and processing charges, using your debit card is generally cheaper than going to a bank or other financial institution to exchange your money.
Do exchanges in bulk. If the circumstances permit it, exchange most, if not all, of your money in one or two transactions. Doing this will save you money in processing fees whether you exchange your money in a bank, use a credit or debit card or a foreign exchange specialist. Some institutions give a discount when exchanging higher amounts of currency.
