Currency Exchange

Rates and fees last updated on
Photo: The Guardian

Photo: The Guardian

Whether you’re planning a holiday abroad or you just need to send money overseas, it’s important to know all the ins and outs of exchanging currency.

Your overseas holiday is booked, your bags are packed and you’re ready to go. All you need to do is convert some of your hard-earned Aussie dollars into the local currency for your destination and hop on the plane, but you’re in for a nasty surprise. When you turn up to the currency exchange counter at the airport, the exchange rate offered is much lower than the one you saw on last night’s news. Then there’s a service fee to pay as well, and you end up jetting off with significantly less cash in your pocket than you anticipated.

The above scenario is one of many common problems and pitfalls presented in the world of currency exchange. Whether you’re sending or receiving money overseas, choosing which currency to use when paying bills overseas or just looking to save money, there are plenty of traps to avoid when exchanging currencies.

Where should I exchange currency?

When you’re converting Australian dollars into a foreign currency, it goes without saying that you will want to find the best possible deal. A crucial feature of every foreign currency exchange is the exchange rate offered, as global currency exchange rates rise and fall every day. You can check the Reserve Bank of Australia website to get an idea of current rates, or visit the website of an online currency exchange service or your bank.


A snapshot of the RBA page displaying exchange rates

Did you know?

Despite the bargains to be found at currency exchange booths, the most cost-effective way to buy foreign currency is to conduct your transaction online with a foreign exchange company like OFX or Travel Money Oz. Such companies tend to offer better rates and lower fees than you could find at a physical bureau. Travelex, which operates more than 100 exchange booths across Australia, also offers an online service which typically provides better rates.

The number one place most people think of when they need to purchase a foreign currency is a bureau de change, otherwise known as a currency exchange, and they often don’t think about changing their money over until their at the airport or have arrived at their destination. These convenient bureaus can be found all over the country and the world in airports, train stations, hotels and shopping centres.

Bureaux de changes tend to charge a commission whenever you perform a currency exchange, while the exchange rates they charge can differ wildly. Bureaus at airports and hotels often tend to offer the worst rates and highest fees - after all, they have you exactly where they want you and many people will simply choose this most convenient of options over shopping around for a better deal.

However, if you do compare exchange rates and find a different bureau, you could find that you can afford to purchase a great deal more foreign currency to fund your holiday. Compare the rates of different providers - even those located on the same street can have different offerings - to find the best available deal.

  • Who offers the best exchange rates? Since rates change on a daily basis, it's difficult to exactly pinpoint who offers the best exchange rate. Some notable organisations include: OFX, Westpac, KVB Kunlun and Travelex.

Further reading: How to get the best exchange rate.

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How should I pay for my purchases overseas?

Credit card

This is the conundrum that every Australian traveller faces when heading abroad, and some people opt to use their Australian credit card when overseas. However, what many people don’t realise is that many credit cards charge sizeable fees for foreign transactions which can end up costing you a pretty penny. If possible, look for a credit card that waives these fees, such as the cards displayed below.

Bankwest Zero Platinum Mastercard

$0 annual fee
0% foreign transaction fees

Eligibility criteria, terms and conditions, fees and charges apply

Bankwest Zero Platinum Mastercard

A platinum credit card that features 0% foreign transaction fees, complimentary travel insurance covers and no annual fee.

  • $0 p.a. annual fee.
  • 17.99% p.a. on purchases
  • Cash advance rate of 21.99% p.a.
  • Up to 55 days interest free
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Rates last updated October 24th, 2017
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
Bankwest Zero Platinum Mastercard
17.99% p.a.
2.99% p.a. for 9 months
$0 p.a.
Receive complimentary international travel insurance, access to a 24/7 concierge service and 0% foreign transaction fees.
ANZ Rewards Travel Adventures card
20.24% p.a.
$225 p.a.
Receive 40,000 bonus Velocity Points when you spend $500 on eligible purchases in the first three months.
28 Degrees Platinum Mastercard
21.99% p.a.
4.99% p.a. for 6 months
$0 p.a.
Designed for travel, benefit from no international transaction fees on purchases and no currency conversion fees.
Bankwest Qantas Platinum Mastercard
20.49% p.a.
2.99% p.a. for 9 months
$160 p.a.
Enjoy a high credit limit with complimentary travel insurances and earn 0.5 Qantas Points per $1 spent on eligible purchases.
Westpac Lite Card
9.90% p.a.
$108 p.a.
Keep credit card costs low with a maximum credit limit of $4,000 and no foreign transaction fees.
Bankwest Breeze Platinum Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$99 p.a.
Offers an introductory balance transfer rate of 0% p.a. for 13 months with a 2% BT fee, plus platinum perks.
Bankwest More Platinum Mastercard
19.99% p.a.
0% p.a. for 6 months with 1% balance transfer fee
$160 p.a.
No fees on overseas ATM withdrawal, no foreign transaction fees and earn 75,000 bonus More rewards points.

Compare up to 4 providers

Depending on the card you choose, additional currency conversion fees may also apply, so read the fine print before you start adding lots of purchases to your card. It’s also a good idea to let your bank know you’re heading overseas - otherwise their security department might notice the foreign transactions on your card and think they’re fraudulent.

  • Do I get still get charged the cash advance fee if I put my credit card balance in credit? Typically you are still charged the cash advance fee. This is because a credit card isn't designed to be put into credit.

Using cash

If you’re using cash, sometimes you’ll be better off sticking with ‘hard’ currencies (like the US Dollar and the Euro) rather than converting to the local currency. This is because hard currencies are often accepted in many countries around the world, their values never fluctuate too much, and you can enjoy big savings when you don’t lose a chunk of your money to poor exchange rates and agent commissions.

Using a travel card

Another option for travellers is to load cash onto a prepaid travel card which you can then use for all of your overseas transactions. These cards allow you to load money onto your card in the currency of the destination you’re travelling to. However, make sure you’re aware of all the fees that apply to prepaid travel cards, as some providers have been known to surprise cardholders with unexpected charges.

One attractive option is the OFX Prepaid Travel Card, which offers locked-in exchange rates for up to nine currencies. The card can be managed online, has minimal fees and is accepted at 32 million locations worldwide.

Chris Minehan: Head of Marketing OFX talks about the OFX Travel Card

  • What happens to my travel card after I finish my holiday? You can apply for a funds redemption, which means you can transfer any left over cash from your holiday back in your bank account. Note that fees and charges may apply. Another option is to withdraw all your remaining balance from an ATM when you're back home.

Using debit cards

If you'd prefer to use your own cash with the convenience of a debit card, then you could opt for one that doesn't charge international transaction fees (typically around 2-3% of the transaction amount in AUD). You'll need to look out for things such as foreign ATM fees too and ensure that your bank provides some kind of solution if it happens to get stolen or lost.

Rates last updated October 24th, 2017
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
Macquarie Transaction Account
$0 International transaction fees. Overseas ATM fee still applies.
Mastercard $0 $0 Free access to all domestic ATMs in Australia including the rediATM network. More
Citibank Plus Everyday Account
$0 International transaction fees and $0 overseas ATM withdrawals fees if you use a Citibank ATM overseas.
Mastercard $0 $0 No ATM fees using Citibank, Westpac, BankSA and St.George branded ATMs in Australia. Use overseas Citibank ATMs for free. More
Macquarie Platinum Transaction Account
$0 International transaction fees. Overseas ATM fee still applies.
Mastercard $0 Free access to the rediATM network. Plus, receive a refund on fees incurred at all other ATMs Australia wide. More
  • Can I preload my debit card with foreign cash? No, cards issued in Australia (with the exceptions of multi-currency accounts) only hold AUD. When you conduct a transaction in a foreign currency, exchange rates will apply.

Once you’re fully aware of the benefits and drawbacks of each approach to making purchases overseas, you can select the most cost-effective option for your spending habits.

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Can I get currency sent to me?

There are some situations where you are travelling overseas and find yourself stranded in a foreign country without any cash, perhaps because you’ve been a victim of thieves or maybe simply due to poor budgeting skills. If you need cash fast, money transfer providers like Western Union and MoneyGram make it quick and easy for a friend or relative to send funds to you. Cash can be picked up from a Western Union or MoneyGram location within minutes, and both of these companies have hundreds of thousands of locations around the world. You can see other transfer options below:

Rates last updated October 24th, 2017
Name Product Min. Transfer Amount Transfer Speed Services Online Transfer Fee Rate Amount Received Description
TorFX International Money Transfers
AUD 200
1 day
Online, Phone, Agent
TorFX guarantee to beat any competitor's exchange rate for a transaction. Conditions apply.
Send money overseas in 45 currencies. Once registered, you'll be assigned an Account Manager who can provide support and guidance.
Exclusive: OFX (Ozforex) International Money Transfers
AUD 250
1 day
Online, Phone, Agent
Exclusive offer: Discounted exchange rates for your first and ongoing transactions. $0 transfer fee.
A higher exchange rate applies to non-finder customers. Send money in 45 currencies.
Exclusive: World First International Money Transfers
AUD 2,000
1 day
Online, Phone
Exclusive offer: $0 transfer fee and discounted exchange rates for your first trade only.
A higher exchange rate applies to non-finder customers. Send money in more than 130 currencies.
HSBC Multi Currency Account
3 - 5 days
Online, Bank Account to Bank Account, Cash Transfer, International Money Order
A multi-currency bank account with up to 10 currencies in one account.
Citibank Plus Everyday Account
Same day
Online, Phone, Agent, Bank Account to Bank Account
A transaction account with free transfers to any country and no foreign transaction or international ATM withdrawal fees.
Exclusive: CurrencyFair International Money Transfers
2 days
Exclusive offer: 3 Free transfers (after your 1st transfer).
A peer-to-peer service: send at least EUR€8 in 15 currencies.
Currency Online International Money Transfers
2 days
Online, Phone
Enjoy regular scheduled transfers, one off transfers and a range of currencies. Also enjoy your first transfer for free.
HiFX International Money Transfers
AUD 50
2 days
Online, Phone, Agent
Make your first transfer for free
Send money in more than 40 currencies.
TransferWise International Money Transfers
1 - 2 days
Make online transfers with transparent exchange rates, low fees and low minimum amounts.
WorldRemit International Money Transfers
Within an hour
Online, Bank Account to Bank Account, Cash Transfer
An online money transfer service with cash pickup, bank account to bank account and airtime transfers available.
The ‘Rate’ and ‘Amount Received’ displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention “Finder” before you commit to a brand.

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In other circumstances, you may be tempted to physically post some money overseas. While it is legal to send up to $10,000 out of Australia without requiring an International Currency Transfer Report from the Australian Transaction Reports and Analysis Centre (AUSTRAC), this method is slow and incredibly risky, so should be avoided at all costs.

How can I safely carry cash overseas?

Wherever you are in the world, it’s important that you observe a few safety precautions when carrying cash. Pickpockets and muggers can strike no matter where you’re travelling, so keep the following tips in mind when you set off on an around-the-world adventure.

  • Keep it hidden. Don’t advertise the fact that you are carrying a large bundle of cash.
  • Don’t wear a bumbag. Wearing a bumbag makes a tourist stand out like the proverbial sore thumb. Not only that, but it tells thieves and pickpockets exactly where you keep your money.
  • Avoid carry lots of cash. Deposit funds in your bank, leave some cash in your hotel room safe or use your credit/debit/travel card where possible - keep the amount of cash you carry on your person to a minimum.
  • Avoid areas where theft is a common occurrence. Every city around the world has its areas and neighbourhoods where there is a higher incidence of muggings and thefts. Use your common sense and avoid such areas.
  • Travel with a friend. The extra security provided by having a travelling companion can act as a strong deterrent to thieves.
  • Do your research. Hit up several online forums and blogs for advice and warnings from other travellers about common scams and areas to avoid.
  • Carry it in a card instead. Carrying a card around is a lot easier than carrying around large amounts of cash. However, you will need to practice your due diligence to make sure you don't lose it and it doesn't get stolen.
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Currency exchange services in Australia

You have a wealth of options at your disposal when you want to trade in your Australian dollars for foreign currency, including:

  • Bureaux de change. Foreign exchange bureaus are operated in airports and shopping centres by companies like Travelex.
  • Banks. You can purchase foreign currency from major Australian banks.
  • Online foreign exchange companies. Travel Money Oz, OFX and other similar companies offer convenient exchange services online.
  • Prepaid travel cards. These cards, offered by major banks and a selection of travel money companies, allow you to load money onto your card in the currency of your destination.
The most popular currencies in Australia

The most commonly traded currencies in Australia include:

  • The US Dollar
  • The Euro
  • The Great British Pound
  • The Canadian Dollar
  • The Thai Baht
  • The Japanese Yen
  • The Indian Rupee
  • The Swiss Franc
  • The Chinese Yuan
  • The Hong Kong Dollar

Other more exotic and rare currencies may not be available from all online currency exchange companies, so you may be better off visiting your bank or a bureaux de change.

With all these options to choose from, it’s clear that weighing up your currency exchange options is hugely important. Comparing the benefits, features and fees of different options will ensure that you get the most affordable deal and don’t get any nasty surprises down the track.

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2 Responses

  1. Default Gravatar
    NaluAugust 23, 2017

    I have 20,000 Taiwanese dollars in cash, what business offers the best exchange rate to convert back to Australian dollars in cash

    • Staff
      ArnoldAugust 24, 2017Staff

      Hi Nalu,

      Thanks for your inquiry.

      I’m afraid I cannot specify a single business. But I can give you comparison options for foreign exchange rates. Here you can find businesses that offer services with high exchange rates.

      Hope this information helped.


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