Exchange rates, still not getting it

Just when I think I understand exchange rate I read something new and get myself confused....


So help me clarify these?

1. Who would/ could charge me fees? ( my bank, ATM, local bank, ).

2. Where is the best place to get a exchange rate closest to the actual exchange rates I see on the financial sites? Can I actually get this rate or is it unrealistic?

3. Is it realistic to get Yen at my local bank BEFORE I travel? Or better to bring a lot of cash and exchange cash in Japan? If so where? Or should I get it from my bank through atm?

4. Where is the best place to check daily to see what rate I am shooting toward? How can I check to see if the exchange being offered is good?


5. How much should I accept as a "loss" off the exchange rate . In other words whats acceptable percent to pay in fees or bad rate change ?

Thanks!

Both the ATM operator and your bank may charge fees. In practice, your bank virtually always does (be it only in the form of currency exchange fees) and, at least in Japan, ATM operators don't.

There is no general rule as to where you can get the best exchange rates. It's a market like any other, with many players competing, and the market looks different in different places. For example, in France it seems the best option is to go through an independent currency exchange office, with some of those charging only about 1.5% on top of the official rate (whereas in banks it's generally closer to 3%). I hear the market is very different in the US, where you are located. In any case, you should compare the rates offered by various places, and make your choice.

As a first guideline, today the rate offered at Narita airport is 2.5%, so you should aim for something lower than that. http://www.narita-airport.or.jp/exchange_e/

1. Any middleman, so to say, can and will. ATM is also run by banks (or banks' network), so there will be fees of some kind too.

2. The rates you see on financial sites are inter-bank rates. So that is not available to individuals. Just use these numbers to monitor the trend.

3. It is possible, sure. I believe that most travelers would bring some Yen (for immediate use after arrival in Japan) that they've changed in their country, and for the rest, simply withdraw Yen cash from ATM in Japan (at post offices and Seven Bank) as needed.

4. Just monitor the "trend" from financial sites or your bank teller's display.

You're from the US, so don't get it there. Wait to exchange cash at Narita or use an ATM. The rates you get in America are horrible.

1: Everyone, but mainly banks - that's how they make a lot of money.

2: Others have said you are US based, so probably at a bank in Japan. As far as I can work out, the US banks do not deal with enough travelling people, so don't hold other currencies - it's too niche (not sure, but 80% of US people don;t even have a passport - might be more now).

3: You might be able to get yen at your local bank IF it is a large bank and it is a main branch. If you are is a small place, I wouldn't expect a bank to carry much currency other than USD.

4: Google actually has a reasonable mid-point if you put in JPY USD to the search. (123.65 as of now). But that is not the rate you will get - the banks take a margin on both sides of the trade.

5: How much margin - 2% to 3% is pretty good. Some countries are much worse, as are some exchange places. The banks at Narita or elsewhere in Japan are pretty good.

In the US there are a few credit cards that do not charge foreign conversion fees as well as some banks/brokers that have ATM/debit cards without fees.....the only fee is sometimes the 1% charged by VISA or MC, no other fee from your financial institution.

In the US there are a few credit cards that do not charge foreign conversion fees

[citation needed]

The Chase MileagePlus Explorer card does not charge foreign conversion fees. I've used it in Japan before.

You're from the US, so don't get it there. Wait to exchange cash at Narita or use an ATM. The rates you get in America are horrible.

As far as I can work out, the US banks do not deal with enough travelling people, so don't hold other currencies - it's too niche (not sure, but 80% of US people don;t even have a passport - might be more now).

That's quite a generalization. I live in a US city which is a popular destination for Japanese tourists. As a result, yen is readily available at competitive rates, usually much better than the rate at http://www.narita-airport.or.jp/exchange_e/

"In the US there are a few credit cards that do not charge foreign conversion fees

[citation needed] "

A simple google search will show quite a few - I didn't think I should list them here to advertise them....but Capitalone and HSBC are two that I have....many travel discussion boards have numerous posts on this subject.

I have the Venture card , which has no foreign transactions fees....but how do I know what the exchange rate will be?

My bank levies a flat 5 dollar fee for foreign withdrawals, so I plan on taking out cash in large amounts to limit the fee as a percentage.....but if the local ATM collects a few also , how will I know what it is? Is it printed on the machine? I have heard 7-11 and the post office are the best places to use the ATM?

We recently spent 5 weeks in Japan and always used the ATM at the 7/11 around the corner from us. For some strange reason our Chase card wouldn't work, eventhough we had alerted them beforehand of our trip to Japan. We used our American Express card instead and had an excellent exchange rate. No fee at the ATM and no fee here from AmEx. We took out \50.000 each time, not sure if that was the maximum amount or not.... Our daughter used her card from a small credit union in MA, same experience, excellent exchange rate and no fees.... You will have to give it a try to see what the exchange rate will be as that info isn't posted on the ATM machine....

Do you mean the Capitalone Venture Card? If so, as far as I know, this is a credit card. With a credit card if you withdraw cash it is regarded as a cash advance with interest being charged immediately. Are you aware of that?

As the previous poster said, I also have never been charged any fee by a Japanese Post Office or a7 Eleven ATM machine.

I'm just very interested in what Dutch Ann has said re Amex withdrawals. Did you load your Amex card up before traveling, so you could withdraw or were they cash advances leaving a negative balance? I always thought there was a fee for this.
As I always bring yen cash from my home country when I travel maybe there is a better way.

I always laugh at people worried about exchange rates and fees when travelling. Honestly if being charged a few dollars for obtaining local currency is a worry then maybe you really can't afford your trip and you should stay home and save more money before you go.

The usual max from 7-11 is Y100,000 - I didn't pay enough attention yesterday about the "fees" applied by the atm company (I'll do that next time) - there is a message comes up on the screen.

I don't use my credit card because of the cash-advance penalties, even if there is no additional fee (on my card there is). Also, my bank statements usefully split out the currency and other service costs.

For people doing one-off exchange, it is probably not a big difference between getting it locally in Japan or from your own bank before you travel. If you are exchanging money frequently, then worry about it a bit more.

Personally, getting yen at my home bank takes more time than I would prefer, even with advance online ordering - the 7-11 or post office atms work well for me.

I have the Venture card , which has no foreign transactions fees....but how do I know what the exchange rate will be?

I have the venture card, and while I don't think you can't check before hand, when I've calculated later it seems that it is very close to the interbank rate. So I usually try to pay by credit card when possible as it is cheaper and easier than exchanging for cash first.

My bank levies a flat 5 dollar fee for foreign withdrawals, so I plan on taking out cash in large amounts to limit the fee as a percentage.....but if the local ATM collects a few also , how will I know what it is? Is it printed on the machine? I have heard 7-11 and the post office are the best places to use the ATM?

Check the card terms about cash advances. If they only charge interest (rather than a fee plus interest) then you can probably overpay your card so that you have a positive balance to withdraw against. That could make cash advance practically free.

I always laugh at people worried about exchange rates and fees when travelling. Honestly if being charged a few dollars for obtaining local currency is a worry then maybe you really can't afford your trip and you should stay home and save more money before you go.

I wouldn't worry about a percent or two especially if you're already under 3% off the interbank rate, but it is important to have an idea of what your options are as the rates can vary as much as 10-15% in extreme cases. Over the course of a 2 week trip that adds up to some real money that you're basically squandering.

I always laugh at people worried about exchange rates and fees when travelling. Honestly if being charged a few dollars for obtaining local currency is a worry then maybe you really can't afford your trip and you should stay home and save more money before you go.

People like you are the reason why there's a market for traders to profit effortlessly off the sheer laziness and ignorance of most.

Who would have thought there are some who aim to maximize their travel budgets by doing some actual research, because the last thing they want to see is a good chunk of their hard-earned savings squandered on a dunce's rate?

A few yen more or less for a single dollar may seem pointless, but you be my guest and do your worst. As was mentioned before, 10-15% off the going rate will make each dollar of yours worth 10-15% less in Japan. You do the math on your travel budget, but if you are lazy with math and rather be scammed from a few hundred dollars on your jaunty escapade... well, let's just say I may have seen worse ways to blow a disposable income.

People like you are the reason why there's a market for traders to profit effortlessly off the sheer laziness and ignorance of most.

Who would have thought there are some who aim to maximize their travel budgets by doing some actual research, because the last thing they want to see is a good chunk of their hard-earned savings squandered on a dunce's rate?

A few yen more or less for a single dollar may seem pointless, but you be my guest and do your worst. As was mentioned before, 10-15% off the going rate will make each dollar of yours worth 10-15% less in Japan. You do the math on your travel budget, but if you are lazy with math and rather be scammed from a few hundred dollars on your jaunty escapade... well, let's just say I may have seen worse ways to blow a disposable income.

I'm not lazy with math at all my friend. But I won't ruin my vacation worrying about a few percent here, a few percent there. If your idea of fun is searching for the best exchange rate so you can save a few dollars, be my guest. I'll be out enjoying what the country has to offer and having a relaxing vacation while you are stressing out wondering how to pay for something because you can't find an exchange worthy of your stinginess. It's only money my friend, there's always more.

Hmm, we 're advocating the same things, only you don't seem to realize it. It only takes a few seconds to educate yourself on money exchange in Japan, and zero effort to put into practice. So while you're are out there enjoying yourself, we'll just be enjoying ourselves 10-15% more!