If you exchange your money at a currency exchange, you'll pay a premium on the international spot rate, as that's how the store makes a profit. If you exchange your money through a bank or by withdrawing the local currency from an ATM, you'll likely come out ahead, even if there are ATM or credit card fees.

In 2026, it is significantly better to withdraw cash from an ATM once you arrive at your destination than to use a currency exchange booth (like Travelex). Local ATMs use the "Interbank Exchange Rate," which is the closest you can get to the "real" value of your money. Exchange booths at airports often charge hidden markups of 10% to 15% through poor rates. To get the most value, use a travel-friendly debit card (like Wise, Charles Schwab, or Revolut) that waives international ATM fees and offers fee-free currency conversion. When using a foreign ATM, always select "Charge in Local Currency" if prompted; if you choose "USD/Home Currency," the ATM will use "Dynamic Currency Conversion," which adds a massive 5% to 10% surcharge. While it's smart to carry a small "emergency" stash of $100 in cash, relying on local ATMs—or better yet, using a "No Foreign Transaction Fee" credit card for 90% of your spending—is the most economical way to handle money abroad in 2026.