What is the best place to buy foreign currency in the US? Paper currency closest to spot rates and with lowest transaction costs?

Well Fargo has a 8% bid-ask spread at the local bank - that is criminal.

Thanks,

Mike

quote:

Originally posted by Beretta682E:
What is the best place to buy foreign currency in the US? Paper currency closest to spot rates and with lowest transaction costs?

Well Fargo has a 8% bid-ask spread at the local bank - that is criminal.

Thanks,

Mike

I will be happy to sell you Zim Dollars at 50% discount off face value.

I don't know the answer to your question, but on three safaris, I have used 100% US$.

There are always currency exchange businesses around international airports. I generally don't use the booths in the airports for anything but pocket cash because they charge too much. You have about a dozen exchange businesses around the Orlando International Airport. Let your mouse hand do the walking: http://www.yellowpages.com/flo.../currency-exchanges#

quote:

Originally posted by Grenadier:
There are always currency exchange businesses around international airports. I generally don't use the booths in the airports for anything but pocket cash because they charge too much. You have about a dozen exchange businesses around the Orlando International Airport. Let your mouse hand do the walking: http://www.yellowpages.com/flo.../currency-exchanges#

All these guys make Well Fargo look like Mother Teresa. They all going to ask 10% plus bid-ask spread.

I used to do all my cash for cash currency FX transactions in Macau - use to be less than 1% cost.

You can use the atm machines overseas and they normally do the best rate.

I just find it criminal that Wells Fargo on a wire transaction will do the fx transfer at spot. To buy sell hard currency they want a massive haircut.

I like holding some foreign currency - need to go build up stock when I travel.

Saeed - I will pass on the very generous offer to buy Zim dollars at 50% of face. I just don't have a few trillion dollars lying around like Uncle Ben Bernanke and Aunty Janet Yellen does.

Mike

I always use my Morgan Stanley ATM card in Namibia at ATM's located at gas stations on the 600 km drive from Windhoek up past Kamanjab. Very small fees charged and we're stopping for gas along the way anyway.

With a strengthening dollar (especially against the Rand) I would not be holding too much foreign currency unless of course you just like watching your buying power sitting still. And the with the dollar projected to remain strong over the next six months to year, the risk of holding foreign currency is not going to change.

Your best exchange rate abroad (in economically stable countries that is) will always be to use a major bank credit card with no foreign transaction fee. Remember that Amex is not widely accepted in southern Africa.

In not so economically stable countries you can always trade on the black market for the best rate. Everyone wants US dollars at the moment.

In part it depends upon where you are traveling. For example when I was in Argentina last year you could exchange at an airport in the US and get ripped off, exchange at an airport in Argentina and get 8 to 1 or go to one of the many "blue" exchanges and get 11 to 1.

In countries where the local currency is weak they may prefer the USD.

My bank charges me about ~3 USD if I use a foreign ATM and the ATM machine itself usually charges ~3 USD. In countries with fairly strong currency I typically withdraw local currency at the ATM "in country" and don't mess with carrying and exchanging USD. Nothing like showing up at 8 PM and with several hundred USD only to find that the cash exchange in the airport is closed.

Where ar you going? How long are you staying? Do you have local resources who can assist?

Eric

I wasn't speaking of the businesses in and at the airport. Those charge way too much. As I said, I will only use those if I need pocket cash for a taxi or a quick bite. But there are always legitimate exchange businesses in the surrounding area. It is not difficult to find one that will give a good rate for a hard currency exchange.

You will always do better if you are doing an electronic transfer. Over the years I have done many of those with a few banks, including Wells Fargo. When I used to make large wire transfers using Wells Fargo I would telephone a number they provided for an exchange agent and negotiate a rate good for that day. The agent would give me a reference number. I would then go to the local branch and fill out the wire transfer document with a teller. We would use the rate quoted and the reference/quote number would be entered in the appropriate box. The rates I got depended on the amount I was transferring. They always told me there were certain minimum amounts but that was negotiable as well. For example, the exchange agent might say that I needed to transfer a minimum of $35,000 for a certain rate but he would let me do a transfer of $27,000 at that rate. And the actual rate itself would be negotiable. Sometimes I would say that I would transfer a larger amount if I could get a better rate of XYZ and he would say that he needed approval. I would wait, and he would come back with approval or a counter offer of a different rate or of the same rate I asked for but only if I increased the amount to be transferred even more.

I also found out that it was often to my benefit to transfer large sums overseas in USD and let the receiving bank make the exchange as they received it. For a few hundred dollars it was never worth the bother. But for large sums it was worth exploring the options before executing the exchange. It was not unusual to find I could save an extra $400 on an exchange as small as $10,000 just by sending USD to the foreign bank instead of sending funds in the foreign currency.

When it comes to physical currency, to get good rates, you need to use a business that conducts many exchanges daily in the currency you desire. They will have large amounts on hand and they will be moving enough currency in and out to make it profitable for them to sell at a good price.

We have used www.travelex.com several times with no complaints.

Karl

When I traveled from Minnesota to SA I bought a small amount at the Airport I think the exchange rate was about 12-1 I got a 10-1 rate

quote:

Originally posted by Beretta682E:

quote:

Originally posted by Grenadier:
There are always currency exchange businesses around international airports. I generally don't use the booths in the airports for anything but pocket cash because they charge too much. You have about a dozen exchange businesses around the Orlando International Airport. Let your mouse hand do the walking: http://www.yellowpages.com/flo.../currency-exchanges#

All these guys make Well Fargo look like Mother Teresa. They all going to ask 10% plus bid-ask spread.

I used to do all my cash for cash currency FX transactions in Macau - use to be less than 1% cost.

You can use the atm machines overseas and they normally do the best rate.

I just find it criminal that Wells Fargo on a wire transaction will do the fx transfer at spot. To buy sell hard currency they want a massive haircut.

I like holding some foreign currency - need to go build up stock when I travel.

Saeed - I will pass on the very generous offer to buy Zim dollars at 50% of face. I just don't have a few trillion dollars lying around like Uncle Ben Bernanke and Aunty Janet Yellen does.

Mike

Mike,

You are in luck, as we have a SPECIAL OFFER for the New Year.

Zim Dollars at 1% face value.

I used my Chase ATM card in Namibia and Germany. Lowest fees I could find. And I didn't have to lug around a lot of extra cash.