Exchange rate

Crap shoot is an apt description of trying to play the exchange markets. There are people who spend their careers analyzing currencies and investing in futures; you won't be able to do that so don't bother trying. Plus you pay a premium to buy currency, which offsets any gain you might have lucked into.

Do you have an ATM/debit card? If so, bring it with you, notify your bank and use it just like you do at home. Credit cards might not always be accepted for small purchases and at small retailers. Using an ATM will get you the interbank exchange rate and you only pay whatever your bank charges you in foreign transaction and out-of-network fees, if any (about 1-4% total).

If you want to bring some pounds with you to start, just buy some a few weeks before you go.

As said, a pure gamble. Added to that while there is much fluctuation, over time the actual percentage difference usually is pretty limited.

But for the question of buy here now on a bet vs waiting, consider that with a good ATM card your cost for pounds will be ~1%. The best deals I have found for currency exchange in the US is about 5% cost, so already, you are at a 4% disadvantage, meaning the currency would need to move 4% in your favor to just break even. Now 6 months ago, if you would have bought pounds, they would have been 7% less than today, you would have gained ~3%, however there has been a steady increase, and as they say, past performance is no indicator of future gains. You would also need to consider the time value of money, that cash will not be gaining interest. Also for 300 pounds, a bank may charge you a fee on top of conversion for small amounts, meaning your cost goes up.

And, had you done this same idea in some prior years you would have found that the cost of the Pound dropped by that summer, hence losing money.
So I ask -do you trade foreign currency routinely as an investment?

No i dont invest. I think i might still get 50 pounds while im still in the USA just so im not SOL when i land

Thanks for the help!

707,

Some of the online currency exchange web sites have a "history" function. Like the stockmarket.

Happy trails

Before everyone jumps all over this, I could be wrong, but I have traveled for many years to Europe and most of the time we bring back some money for the next trip. But a few times we had nothing to return with and honestly if you have to buy some money here before you go I don't think you can get it any cheaper than just at the airport currency exchange center. They usually have some type of "deal". I would just suggest cashing as little as possible.

*> I don't think you can get it any cheaper than just at the airport

currency exchange center. They usually have some type of "deal". I
would just suggest cashing as little as possible.*

The "deal's" offered by currency exchanges are specials off their otherwise very poor exchange rates or fees. Exchanges are always the most expensive way to get foreign currency (10-20%). But for a small amount to have on hand on arrival, the extra cost is minimal. Most banks will do an exchange for about 5-10%, as will AAA. The ATMs cost most people about 2-4%.

In my city we are able to buy foreign currency from Globex and I just came back from buying some euros. On line this morning Oanda had the exchange rate for the Canadian dollar vs the euro as 1.54054. I paid 1.5495 at Globex. When I use my ATM card (Royal Bank or TD) in Europe to withdraw euros, I get charged a $5.00 fee plus 2% or more for the currency. It has become my habit to carry as many euro as I think I will need when I travel. Of course, in a money belt! I am not recommending it to anyone who is nervous about that sort of thing. I'm only saying it has worked for me on my last 3 forays into France and Italy.

Exchange rates vary, not seasonally, but due to market pressures - like relative economic strengths of the different economies, stock market variations, invasions of countries, hijacking of planes, etc.

I can't predict those things, or I would be the millionaire that I'm not.

Double check, the last time I inquired at Bank of America it was at least 10-20% with fees that they charge. I have never heard of AAA of California doing money exchanges. Their are private companies on line that might work. I really don't think you need to start out on any trip with much money. There are also ATM's at the airports you arrive in. And if you have a lay over in a foreign airport food venders take charge cards.