If you are planning on traveling overseas in the near future, it is important to understand how money is exchanged and how to get the best deals.  Currency exchange can be a bit tricky at first and if you are not careful, you can lose lots of money.  Here are some tips on the best ways to exchange currency.

The good news is that many of the top countries in Europe now are on the Euro, so you won’t need to exchange as often as in the past, however if traveling from the UK, to France, to Middle Europe you can still pass through many currencies. 

One of the best ways to access your money is to use ATM machines.  Don’t bother bringing boat loads of cash with you to Europe, there are plenty of ATM machines around and they usually offer the best rates.  If you need to exchange currency, never do it on the street, you might be given counterfeit money, always go to legitimate exchange services.

Most services charge a commission fee above what the exchange rate is.  If you are not careful you can easily pay them 5% or even 10% of the value of the money just to exchange it.  Look for services that offer commission free exchanges, they will usually state their rates prominently so you can determine exactly the price you pay for exchanging currency.  It is always best to shop around; you can usually save a few percentage points by being a smart shopper. 

Finally, while hotels are very convenient, they are usually the worst places to exchange currencies because they charge the most.  Avoid hotels if you can.