Euro vs. USD

Withdrawing from an ATM with an ATM or debit card is the best way to avoid extra fees (unless your bank charges for foreign ATM withdrawals), and it's the best exchange rate available. And as far as credit cards are concerned, if you use a Capital One credit card there will be no additional foreign transaction fee, and your rate will be in line with anywhere else (not especially crappy). Check the details of your card, and ask at your bank regarding ATM fees -- shop around for better deals if you don't like their answer.

In my experience, Travelex has one of the "crappiest" FX rates around. I just looked at Oanda.com and the current Interbank rate is $1.5003/Euro, so that makes Travelex, at $1.63, 8.7% over. Wells Fargo's website shows they are selling Euro today at $1.57 (4.7% over).

The network (MC, Visa, Plus, Cirrus, et al) charges banks about ½% to handle foreign ATM transactions and another ½% for currency conversion. Small banks, without For Exch operations, pay the 1% and pass it on to you, possible with a few $ for an out-of-system ATM. Large banks (Wells Fargo, Chase, USBank, to name a few) have foreign currency ops, so they pay the network the ½% cross border transaction fee and give them Euro, then charge you 3% for "currency exchange".

Don't use a credit card at an ATM. You will pay for a cash advance and start paying interest immediately at a very high rate. If you use an ATM or debit card, you pay only the 1%-3%.

Sharon I am a currency trader by profession and as I write this the Euro is trading at 1.49 so those quotes are ripping you off. Lee has it right as to how the banks function with currency. I use my Wells Fargo ATM card in Europe and they charge 3% less than they do if you buy the Euros here in cash before you go. For example if I bought them in the USA today in cash the rate was 1.57 as Lee mentioned, but if I went to an ATM today in Eurpoe and used my Wells Fargo card the rate would have been 1.54. In Nov 2008 the Euro dropped to 1.23 which was a 2 year low so I bought some in cash to tuck away for my trip this next year. I paid 1.30. The Market makers are the large banks and they move the market where they want and not necessarily where financial data should place a certain currency. In March the Euro was at 1.25 when the dollar should have been tanking but the Market makers took it down so they then could shoot it back up and take out small traders so nobody can really tell you where it will be in December...they would be guessing. I personally would wait until I went, use the ATM there and take my chances that it wont be alot higher. What I would not do is go for the 1.63 or 1.68 robbery rate they quoted you. Some banks have different rates so shop...you have lots of time. Steve Lee and Nancy all gave good advice. ForEx rules are based partly on financial fundamentals and partially on the large banks and on where they want to move the market. If the Euro follows history it will go up to the 1.60 area hang there for awhile and then come down before making another big move up.

I don't play foreign currency. As a general rule for investing, however, I never buy something that's at an all time high and I rarely sell something that's at an all time low. I try to buy things when they are a good deal and sell them when they have value.