Finance, Forex and Investments

What method of currency exchange will give me the best exchange rate?

I'm going to Europe next month and I know the exchange rate is terrible but I wanted to know what method of conversion gives me the most Euro for the buck... traveler's cheques? exchanging cash at a local exchange place? using my atm card everywhere I go? Taking money out of the ATMs there? From your experience, what has been the most convenient and cheapest method?

Public Comments

1. traveler's cheques are kind of a waste because most places will charge you to cash them and it can be kind of a pain to find someplace willing to take them. i used them on one trip and decided they're really not for me. these days i use my atm card to take out cash and use my credit card for the bigger purchases. when you withdraw money, take out enough for a couple of days instead of making lots of smaller withdrawals because they charge you at the machine. more withdrawals means more atm fees.
2. ATMs give you the best exchange rate. You'll pay ATM fees, but you have to pay commission fees to exchange travelers checks so that's a wash. Plus, ATMs are open 24/7. Cards with Visas and MasterCard logos are accepted everywhere. Travelers checks give you the next best rate. Cash gets you the worst rate. If you must carry travelers checks or cash, try to use banks for exchanges. Their rates will normally be better than non-bank money changers. Be sure to call your bank before you go and tell them that you are traveling. Otherwise, they may consider foreign transactions as suspicious and think that your ATM card was stolen. You won't have any problems as long as you tell them in advance. I stopped carrying travelers checks to Europe 11 years ago and have never missed them.