Buying Euros - best rate

[scwappy]

Or the ING Orange Everyday card as previously mentioned. It's not as cheap as the 28º Card, but $2.50 per withdrawal and around 1% margin on mid-market rates makes it an easy option without needing to apply for credit (and based on GE Money's dealings, you'd be lucky to get the card within 2 weeks of the application approval whereas ING took around 3-4 days to get the card out to me).

28º is going to be the best card to pre-load with cash of course, but doesn't work for people wanting to hedge

Drewbles, I agree with you. The best way I have found to hedge this , should the trip be some time in the future, is via a HSBC foreign currency account, and converting this back to AUD when the actual foreign currency spend is to take place, and actually spend or take cash out overseas via 28 degreees card.

 

[medhead]

So I have finished my survey of the physical shopfront exchange places. At each place I asked for a quote to buy €1000. the back ground details are:

• started at about 12:20pm and finished at 13:10pm
• mid market rate (source bloomberg iphone app) 0.7259 at start, 0.7255 at the finish

Place  Cost     Fee     Total     Effective rate
ANZ  $1442.59  $14.43  $1457.02  0.6863
NAB  $1443.42  $15.88  $1459.30  0.6852
CBA  $1454.33  $14.54  $1468.87  0.6808
HSBC  ---        ---   $1519.31  0.6582*
WBC  $1450.33  $8      $1458.33   0.6857!
Aust  €1030 = $1493.66**         0.6896
Post
Escape $1428.60  $0   $1428.60   0.70
Travel
UAExchange $1428.60  $0  $1428.60  0.70

I also checked Travelex in 2 places; the first was their booth in the post office rate =0.691 (0.014 better than the post office), the second place was the booth in Rundle Mall 0.649! Frankly Travelex is absolutely the last place I would ever exchange money.

In conclusion, both escape travel and UAExchange offered the best rate being at least 1 cent better and also with no fees or commission. The best place to buy cash is one of these places, once you find the place in your city use it.

I ended up buying €300 from escape travel. I will use my NAB gold debit card for cash machine withdraws in Europe. This card is free of bank fees, and uses very close to the market rate. IMO it is equal to the 28 degree card and is better than the ING card due to the no fee bit. I have this card already so no need to get a new card in 2 weeks.

I hope this comparison helps the OP. I will update the above with my earlier Internet based comparison.

* this was a package deal with a $10 phone card and a sell back right within 90 days at closer to the market rate. That is potentially a big benefit, but I didn't bother to work out if it was worth the extra cost. HSBC did offer to price match if I didn't want the package.
! Westpac recommended Escape Travel
** Aust Post only let me nominate an AUD amount. But it was based on the quoted exchange rate.

 

[Cynicor]

As an external benchmark to medhead's comparisons, today in Singapore 1000EUR will cost you a fraction under $1401AUD.

This is cash, direct AUD-EUR with no commission. Though I don't think I've ever seen a shop with commission in Singapore...

I tell most of my friends and family to get the 28 degrees card and change money in singapore if they can, or know anyone going there, and if not get as much cash as they require from the UAE exchange in Perth after checking 2-3 of the competing sites nearby.

So slaussie's experience of the AUD being valued higher in Oz unfortunately doesn't hold today. Would be nice to get a good deal close to home for once..

 

[Mike-downunder]

As an external benchmark to medhead's comparisons, today in Singapore 1000EUR will cost you a fraction under $1401AUD.

This is cash, direct AUD-EUR with no commission. Though I don't think I've ever seen a shop with commission in Singapore...

I tell most of my friends and family to get the 28 degrees card and change money in singapore if they can, or know anyone going there, and if not get as much cash as they require from the UAE exchange in Perth after checking 2-3 of the competing sites nearby.

So slaussie's experience of the AUD being valued higher in Oz unfortunately doesn't hold today. Would be nice to get a good deal close to home for once..

Folks, I am reading all your answers, but aren't you trying to split hair. It may be ok if you change millions of $, but if you go to Europe on a holiday, how much Euros do you neerd? 2 3 5- or maybe 10.000 Euros? If you take a good card, low fees, say $3-6 per exchange and an everage rate. With the time you spend on all the research, I probably have earned the difference. It is good not to just accept what the banks, credit card companies etc offer, but how far do you want to go. This is just thought.

 

[Cynicor]

Sure, you save some time once-off by just paying the bank rates for travelling, but when the banks charge a 2-3% commission and a $3-5 withdrawal fee how much is it going to cost you over a year? I only travel for leisure and still use a foreign atm 20-30 times (especially in less safe countries where carrying large amounts of cash is a bad idea). Add to that 15000-20000 of foreign denominated expenses for that travel and you arrive at ~$750 in a year, for 4 holidays.

Instead I spend an hour or two searching, reading forums, walking 1-2 city blocks in the CBD comparing prices and I know where to go and the best cards to use forever more (until they update the T+C. which I will probably learn here first...).

Finally, I read the posts here anyway so it's not any extra time spent that I could be working, but to each their own.

 

[medhead]

Folks, I am reading all your answers, but aren't you trying to split hair. It may be ok if you change millions of $, but if you go to Europe on a holiday, how much Euros do you neerd? 2 3 5- or maybe 10.000 Euros? If you take a good card, low fees, say $3-6 per exchange and an everage rate. With the time you spend on all the research, I probably have earned the difference. It is good not to just accept what the banks, credit card companies etc offer, but how far do you want to go. This is just thought.

To answer your question, how many euro do I need? As many as possible. Maybe that is a flippant answer but there is an element of truth. Basically, it is worth me maximising my money. So far, 2 years ago, I spent about an hour doing a similar comparison as today. That told me to use UAExchange. I have used that ever since and just go straight to them, my benchmark being that they are within 2 cents of the mid market rate.

I spent another hour today and basically got the same answer, but I did find out about this Escape Travel booth. Next time I do this I'll just compare Escape travel and UAExchange. If I could be bothered I will also check KVB Kunlun in Sydney, according to reports they are just about the best in Australia. (Note I'll also be looking at the HSBC currency accounts in the future)

Why did I do this comparison today? Because I felt that the advice to use banks, travelex or etc. didn't match my experience from 2 years ago. I think it still stands that UAExchange or equivalent is the best place to get foreign cash money even if they seem to have increased their spread. Forget the banks, 4 cent spread and upto 1.1% commission :shock: - get serious! Definitely forget Travelex, as they might be ok online but if you go to their booths you will just be ripped off massively by a 7 cent spread :shock: :shock: :!: Actually the spread is more like 14 cents if we look at the buy rate.

On the cards there is no point paying any fees when there are fee free products. Also having a fee free product it should be used, as it will get closer to the market rate when you do the withdrawl. Obviously there are risks with this approach.

Wow this is a bit of a ramble. In summary based on my reading of the thread, depending on the level you are prepared to go to, then the follwoing are the ways to get the most from your currency purchases.

• the best rates can be had at places like UAExchange (yes, dodgy looking place) or KVB Kunlun to get cash when you land
• Get a fee free card - 28 Degrees or NAB Gold Debit
• Foreign currency account for those who want to hedge the exchange rate - look at HSBC

 

[ellen10]

I am the original OP and I really appreciate all of the replies and valuable information supplied here.
Medhead, thank you for your thorough investigation of comparison rates and suppliers.

I have learnt so much with this post and the "think outside the box" foreign currency options. I love to travel and the better I save money here and there the more I have for more travel. As most of our next trip accommodation is a pay as we arrive up front cash transaction. This time we are renting apartments, staying at B&Bs or mixing it with the locals. The better the rates or less fee or commission I have to pay the better.

So I will certainly taking up these great ideas.

Thank you one and all.

 

[Sprucegoose]

Yes alot of work has been done here.

The true cost is the walkaway price, a combination of rate, fees and commission.

The other note I will offer is DONT USE TRAVELEX!!!

Happy haggling.

I have found The best rates are from little businesses in small dark lanes in country!!

The other thing I have found when I thought rates would go up, they went down!! And vice versa........

 

[medhead]

Medhead, thank you for your thorough investigation of comparison rates and suppliers.

Not a problem, I had to do it and I was only putting it off (I missed getting 0.74 because of my inertia ). Thank you for prompting me to get off my back side.

 

[anat0l]

The true cost is the walkaway price, a combination of rate, fees and commission.

Probably one of the few places where the ACCC, Choice, a consumer organisation or another consumer has not screamed to Hell and high Heaven for equitable and comparable pricing. Not that we need another excuse and a law to remind us that we're lazy.

The other note I will offer is DONT USE TRAVELEX!!!

This irony sprung back at me when I arrived in South Africa. At JNB Airport I used the Travelex to change AUD to ZAR. (This was before I had a 28 Degrees or formerly known Wizard card). Not only was ZAR in abundance (some of those rarer currencies need to be ordered in advance!), but out of all the exchange places in Australia and the other 3 exchange places at JNB Airport (including one bank, one Amex and one other non-bank), the Travelex had the best rate (yes, even after the commission)!

I suppose the dynamics get a bit messy (especially whether to change in the target nation or back at home) when you're changing AUD to a currency which is "weaker" (e.g. ZAR, NZD...)

 

[plspoon]

I'd just like to add another two-bob's worth, that I think it a little unfair to say "don't use Travelex". I did compare rates online for at least 4 banks/travelex/qantas travelex and on more than one occasion they came out cheaper. I would not be buying from a booth or travel agent though, at least not without having done my homework first.

I don't live right in the City and to do a major shop around of all the currency booths I would have to go into the City and pay for parking or train fare and spend my time. Personally, I would rather have the convenience of ordering online and picking up locally or at the airport on departure which may or may not give me the option of the companies being mentioned above.

 

[Sprucegoose]

I'd just like to add another two-bob's worth, that I think it a little unfair to say "don't use Travelex". I did compare rates online for at least 4 banks/travelex/qantas travelex and on more than one occasion they came out cheaper. I would not be buying from a booth or travel agent though, at least not without having done my homework first.

I don't live right in the City and to do a major shop around of all the currency booths I would have to go into the City and pay for parking or train fare and spend my time. Personally, I would rather have the convenience of ordering online and picking up locally or at the airport on departure which may or may not give me the option of the companies being mentioned above.

No it's not just about the rate,they offered me QF points and then switched products and didn't tell me after the EFTOS had been swiped that the points deal didn't apply to this transaction.

We are at the Int Syd about to board. Sneaky unethical behavior.

Rate was cough in any case.......buying in Fiji was alot cheaper.

I will challenge anyone to tell me TRAVELEX rates are competitive at the airport.