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If you're looking to exchange money in Australia, there are a few options available to you. You can exchange money at banks, post offices, or currency exchange services like Travelex and Travel Money Oz. Banks offer foreign exchange services in specific branches or online, but it can take up to 5 business days for the currency to be available. Post offices in Australia often have American Express Currency Exchange centres, which are convenient if you need to buy or sell currency quickly. Currency exchange services typically offer better rates than banks, but they may not have a large amount of cash available in less common currencies. Ordering currency online is often the cheapest and easiest option, but it's important to be aware of any fees, charges, or commissions. When exchanging money, always look for the best possible exchange rate to get the most value for your money.
| Characteristics | Values |
|---|---|
| Best exchange rate | Mid-market exchange rate |
| Where to find the best exchange rate | Main city centres, where businesses compete against each other |
| Where to exchange money | Banks, post offices, American Express Currency Exchange centres, online currency exchange services, peer-to-peer, specialised foreign exchange companies (e.g. Travelex, Travel Money Oz) |
| What to do with leftover foreign currency | Donate to charity, give to family and friends, keep as a memento, sell to a foreign exchange specialist |
| How to avoid extra fees | Choose to be charged in the local currency, or choose your home bank's exchange rate |
| How to get cash in Australia | Use an ATM (banks, shopping areas, pubs, restaurants) |
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What You'll Learn
Best exchange rates
When looking for the best exchange rates, it is important to compare rates from different providers. Websites such as BestExchangeRates.com, Finder, and Wise can help you do this. These websites can help you avoid excessive margins and fees when exchanging money. They also provide FX forecasts and analysis, as well as live exchange rates, to help you make an informed decision.
It is recommended to use money transfer specialists such as OFX and Wise, as they typically add lower markups to exchange rates and have cheaper transfer fees compared to banks. Banks often offer weaker exchange rates and add hidden markups for customers.
Ordering foreign cash online or using a multi-currency travel card can also help you get better exchange rates. Online travel money companies often have better exchange rates than high street exchanges due to their lower operating costs. Supermarkets are a good option if you want to collect your currency in person while still getting a decent rate.
Additionally, consider the amount you are transferring. Many money transfer providers offer stronger exchange rates for larger transfers. For example, if you send more than $10,000 with OFX, you can avoid any transfer fees.
Lastly, timing plays a crucial role in getting the best exchange rates. Currencies tend to react to economic and political events, news around inflation, and interest rates. Exchange rates can be volatile, so it is beneficial to stay informed about market trends and exchange rates before making a transaction.
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Banks vs. online
Banks and online services are the two main ways to exchange money in Australia. Banks are a good option if you want to exchange a small amount of money, as they will almost always be the cheapest option for this. However, if you are exchanging a large amount of money, it may be more cost-effective to use an online service, as they typically offer lower fees and more competitive exchange rates.
Banks in Australia often provide foreign exchange services, either in specific branches or through an online service where you can order cash for collection at a nominated branch. Some banks may not buy back all currency types, and they may not offer the best exchange rates. It is also worth noting that some banks may only provide this service to existing customers.
Online services, such as Wise and Revolut, offer multicurrency accounts that can be accessed online or through mobile apps. These accounts enable you to exchange currency and hold it in an online account, which you can then use overseas with an attached debit card. Online services can be more convenient, as they allow you to lock in a good exchange rate and pick up the cash close to your travel dates. However, it is important to be aware of any bank fees that may be incurred when using a credit card to buy foreign currency online.
To get the best exchange rate, it is recommended to do some research and compare rates across different providers. Additionally, it is important to keep in mind that exchange offices may not accept damaged banknotes, so ensure that the banknotes you bring are clean and crisp.
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In-person exchange options
There are several in-person exchange options available in Australia. The first option is to exchange money at a bank. The 'Big Four' national banks in Australia are likely to offer competitive exchange rates. Some banks, such as CommBank, allow customers to buy or sell up to nine currencies over the counter at selected branches. Non-customers can also exchange money at CommBank. Additionally, some global banks like HSBC operate in Australia and may offer favourable terms for account holders at their other global brands. Therefore, it is worth checking if your home bank has any partnerships with Australian banks.
Another option is to use a specialist money changer, such as Travelex or Travel Money Oz. These companies often have competitive exchange rates and stock a large range of currencies. However, they may not have a lot of cash available in less common currencies, so it is recommended to call ahead and check.
A third option is to exchange money at the post office. Some Australia Post offices have an American Express Currency Exchange centre, which can be convenient if you need to buy or sell currency in a hurry.
Finally, you could consider peer-to-peer exchange, which involves buying leftover currency from someone else's holiday. This option can be cost-effective as it avoids the costs and charges of using a bank or money exchanger. However, there are risks involved, such as receiving old or counterfeit notes, and there may be no recourse if the transaction does not go as agreed.
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Peer-to-peer exchange
Peer-to-peer (P2P) foreign currency exchange platforms allow individuals to safely connect and swap currencies without bank or broker fees. This means that P2P can offer significant savings, with most online P2P companies claiming to provide up to a 90% cost saving on international exchange and transfer fees.
P2P currency exchange services work by matching buyers and sellers of different currencies to deliver a competitive exchange rate. Users register for an online account to make deposits, and depending on the site, they can accept a given exchange rate or bid on their preferred rate. The site then matches users, shows a change in the ownership of funds, and remits them within one to two days through a simple domestic transfer.
There are several P2P payment providers available in Australia, including CurrencyFair, Wise (formerly TransferWise), and PayPal. CurrencyFair has central offices in Australia, Ireland, and the UK, and is regulated by the Australian Securities and Investment Commission (ASIC) and the Central Bank of Ireland. Wise offers a mid-market rate for currency transfers, matching members with one another to get the best rate. PayPal is one of the most user-friendly options, particularly for one-off or occasional payments to international contacts.
When choosing a P2P transfer service, it is important to consider factors such as exchange rates, fees, minimum and maximum transfer amounts, and transfer methods. While P2P services offer competitive rates, the rate you initially see may not be the rate you get, as currency values fluctuate. Additionally, P2P transfers rely on there being the same number of buyers and sellers available, so you may not always be able to make a transaction.
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Credit cards abroad
Credit cards are widely used and accepted in Australia, especially in bigger towns and cities. Visa and Mastercard are the most widely accepted, although American Express may not be accepted everywhere.
If you are visiting from another country, you should check whether your credit card charges any foreign currency transaction fees (also known as non-sterling transaction fees). If it does, you may want to switch to a travel-friendly credit card or a debit card, which often has no foreign currency transaction fees.
There are several credit cards available that do not charge foreign transaction fees for spending abroad, although there may be a fee for cash withdrawals. These include the RBS Reward Black Credit Card, the NatWest Travel Reward Credit Card, and the Bip Credit Card. The Bankwest Zero Platinum Mastercard and Bendigo Bank Ready Mastercard do not charge foreign exchange fees, but do charge cash advance fees.
If you plan to use your credit card for cash withdrawals, you should be aware that this usually comes with a fee, so it is best avoided. Instead, consider using a travel money card loaded with foreign funds as your primary card while overseas. These prepaid cards display your balance in the local currency, making it easier to budget and manage your money.
You can also continue building up your reserve of frequent flyer or credit card points overseas. Travel money cards and rewards credit cards can earn rewards, such as the Qantas Travel Money card, where you earn 1.5 Qantas points for every $1 AUD you spend in a foreign currency.
Finally, remember to contact your credit card provider before you leave to check that your insurance is activated and that you are fully covered for your trip.
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Frequently asked questions
Compare exchange rates across a range of providers, including the 'Big Four' national banks and global banks like HSBC. The best exchange rates are often found in main city centres, where businesses compete against each other. It can also be cheaper to buy currency online via currency exchange brokers, such as Travelex and Travel Money Group.
Choose to be charged in the local currency, or choose your home bank’s exchange rate. This will help you avoid extra fees and get a fairer rate.
DCC shows you the cost of a payment in your home currency but converts your money at an unfavourable exchange rate. Always decline paying in your home currency and opt for the local currency instead.
Prepaid cards for travel have become popular in recent years. You can also order currency online and collect it from your nearest post office.
Tell your bank that you’re planning on travelling to avoid them suspecting fraudulent activity and freezing your account.
