Where can one exchange U.S. Dollars (USD) for Thai Bhat? Or Euros for Singapore dollars? The exchange of foreign currency is a lucrative business and one that most international travelers deal with when they go outside their home country.

A traveler usually has several options when considering how to exchange foreign currency. He can do it at home, through a bank or through an online service, or she can wait until she gets to the country where she is traveling and exchange foreign currency there. There are advantages and disadvantages for all the methods.

When time is not of the essence, a person can probably exchange foreign currency most easily at his or her neighborhood bank. He will need to order the currency some time in advance, in order to give his bank time to have it available. Large banks in big cities may be able to exchange foreign currency in the most common denominations for walk-in customers. These banks will probably have Euros, Australian dollars and Russian rubles, for instance, although it is always a good idea to call first and find out. The main advantage of this is that a person will usually get the best exchange rate, and if an account holder, will rarely be charged a service or delivery fee. The disadvantage is that the process does take time, so advance planning is necessary.

To exchange foreign currency online, all a traveler has to do is run a search. The service is usually rapid, however, the site will charge a delivery and/or service fee for the exchange, which may wipe out a good exchange rate. Still, most online services are reliable and honest. Using a brand name service, like Wells Fargo will probably pay off, since their reputation is well-known.

The other options a traveler has to exchange foreign currency is to do it in the country where he or she is traveling. In this case, most travelers can exchange foreign currency at a kiosk in the airport, at an ATM or at a local bank. Many veteran travelers recommend using the ATM because it will always be stocked with cash and frequently, the best exchange rates are from an ATM. A small service charge will usually be assessed, but most people are accustomed to paying this when using an out-of-network ATM anyway. Plus, the ATM is usually easier to find, except in remote countries, and most airports have them readily available.

Airport currency exchange kiosks may also be handy, especially in smaller airports where an ATM may not be available. The exchange rates may not be as good, but they are safe to use. Banks are also a good place to exchange foreign currency. Most towns have a small bank and in general the exchange fees are fair, even if they do levy a service charge. Again, banks are safe places to exchange foreign currency.

One option a traveler should never exercise is to exchange foreign currency from an “independent” dealer. This can be very dangerous. These dealers usually offer the worst possible exchange rate, may use counterfeit cash, or even attempt to mug an unwary traveler. This is why it is a good idea not to flash cash in foreign countries. It marks the traveler as a profitable target. Banks, ATMs and airport kiosks are by far the best places to exchange foreign currency when at the destination.