When planning a trip to London, you must think about how and where to exchange currency to buy British Pounds if you travel from abroad.
When exchanging currency, we face commission fees, transaction fees, not-so-good exchange rates and sometimes other fixed fees. The total cost depends on the rate and fees, so compare the pounds you would actually receive.
Rather than exchanging cash nowadays, we recommend using a Payment Travel Card, but we understand that in some cases, we still need to exchange currency.
This article explains how to compare options for buying British pounds before or during a trip to London. We will also list some of the best places to exchange money in London, in case you need to consider this option.
British Pound Sterling: United Kingdom´s official currency
The official currency of the United Kingdom is the Pound Sterling. One pound is equivalent to 100 pence. There are £5, £10, £20 and £50 notes, and the usual circulating coins are 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. A 25p crown is a commemorative coin, not an everyday circulating denomination.
Exchange rates change daily. Check a live rate before travelling and compare the amount of pounds you will actually receive after any commission and fees.
Factors to consider when buying British Pounds
There are two key factors we need to consider when exchanging currency:
- The exchange rate refers to the number of pounds you will get for each euro, American dollar or other home currency. During the day, exchange rates between different currencies fluctuate. If you are travelling to the UK, it’s a good idea to check the exchange rate daily to plan when to exchange your money so you get more pounds for your money. Check the current exchange rate here: https://www.xe.com/
- Commission: Banks and other currency exchange entities usually charge a commission on any currency exchange. This can be a fixed amount, a percentage of the total amount you need to exchange, or both.
Buying British Pounds in London
There are certain areas of London where there are a large number of exchange houses, also called Bureau de Change. If you go to the Tottenham Court side of Oxford Street in London or walk around London´s main train stations, such as Paddington, Victoria, and Liverpool Street, you will see loads. As there are so many, they compete with each other, so it´s easy to check their exchange rates as you walk past and choose the best one.
A London bureau can be convenient if you need cash, but a prominent “0% commission” sign does not guarantee the best rate. Compare the final pounds received for the same amount of your home currency.
Paying a bureau with a credit card may be treated by your card issuer as a cash transaction, with extra charges or interest. Check your card terms before paying; debit-card and cash rules can also differ.
Exchange Houses in London
Thomas Exchange and Covent Garden FX are two central London options. Compare their live buy rates, any fees, collection rules and the total pounds you receive before placing an order. Online reservation terms vary by provider.
Exchange Houses in London: Directions and Opening Hours
A few exchange houses in London:
| Bureau | Central London branch | Before you go |
|---|---|---|
| Covent Garden FX | 30 Jubilee Market Hall, London WC2E 8BE | Check today’s rate, collection terms and opening hours on its website. |
| Thomas Exchange | 5 Market Place, London W1W 8AE | Check the current branch listing, rate and opening hours. |
Buying Pounds at your regular bank
If you wish to buy British pounds at your regular bank before you travel to the UK, check their exchange rates first and make sure you understand what fees they will charge you.
In our experience, the average cost of exchanging currency in some European Banks (when we used to live abroad and needed to buy Pounds) would have cost us around 40 Euros more than exchanging once in London.
Banks usually charge a commission, which can be a fixed amount or a percentage of the total currency exchanged, or their exchange rate benefits them rather than the customer. They may apply a management fee which may not be clearly explained.
Currency Exchange at the Airport
Not an option I would recommend. Options to exchange currency at the airport are very limited, so you don’t have much choice, and they usually offer the worst rates possible as well as high commission fees.
If there is no other option, then I would try to pre-order via their website and choose to collect, rather than walking up to the currency exchange office directly. This way, you will likely get a better exchange rate.
Exchanging large amounts of foreign currency
If you need to exchange a large amount of currency, maybe because you are planning to move to the UK or you are going to spend some time here, then you don’t want to pay high fees or poor exchange rates. We found ourselves in this situation when we first moved to London.
The best option is to bring some cash, so you have enough for the first few weeks whilst you organise everything. Opening a Transferwise account or a Revolut account in these cases is probably one of the best ways to get started, as multi-currency cards will allow you to use your card when you’re in the UK. You will most likely need to open a bank account in the UK once you have your UK address, and then Transferwise offers easy international bank transfers without high fees.
Using credit and debit cards when visiting London
Using your regular card
If you live in the UK and have a UK bank account, you can use your regular debit or credit card in London as you would at home. We hardly use cash in London nowadays, and pay for everything using a contactless card, however small the amount.
You can use contactless payment methods at London’s Public Transport, shops, restaurants and even market stalls.
If you live abroad, check your own bank’s foreign-transaction fee, cash-withdrawal fee and exchange rate before using your card in London. Some cards charge no foreign-transaction fee, while others charge a percentage or fixed amount. Compare the full cost rather than assuming one type of card is always cheaper.
If this is the case, we highly recommend you open a free Revolut account with a multi-currency card that can be used in London.
Revolut Account and Multi-Currency Travel Cards
A travel card may be convenient and competitive, but costs depend on the provider, your plan, the exchange rate and when you convert. Compare the total amount charged for the same purchase or cash withdrawal.
Revolut is one of the best-known bank accounts that allow you to spend abroad like a local. It is our favourite payment travel card, and what we use if we travel abroad. If you are visiting London and want to use a card, rather than carry a load of cash, we highly recommend Revolut.
Please note:
- This information does not constitute financial advice. Do your own research to ensure it’s right for your specific circumstances.
- We don’t investigate the solvency of companies mentioned
- We can’t be responsible for the content of the websites we link to.
Hi, we are Alberto and Amy, the London locals behind PlanTrip London. We’ve lived in London since 2010 and have spent every year since exploring the city, from its famous landmarks to the markets, pubs, parks and hidden corners most visitors never find. Over the years we became the go-to trip planners for friends and family visiting London, so we created this site to share the same first-hand, tried-and-tested advice with you. Every itinerary, tip and recommendation here comes from our own experience with our two children, so you can plan a London trip that’s easier, better value and far more memorable.