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Avoid a foreign exchange rip off - 6 August 2010

Families going abroad this summer are being warned that they could lose hundreds of pounds exchanging their money at the airport bureau de change.

Currency prices can be up to 9% more expensive at Gatwick, Heathrow and Stansted compared with other foreign exchange outlets, a survey by foreign exchange firm Currencies Direct has revealed.

This means a family changing £1000 for a European holiday are £104 worse off buying euros at the last minute, rather than ordering in advance from a specialist firm which can find the best available rate.

The company surveyed exchange rates for euros and dollars at bureaux de change at Gatwick, Heathrow and Stansted airports and also checked high street deals on offer at the Post Office and Marks & Spencer.

The biggest difference between the best rate available from Currencies Direct and an airport bureau de change was at Thomas Cook in Heathrow airport, where buying US dollars were 9% more expensive.

Over 14 million Britons went on holiday abroad between July and September 2009. If half of these travellers exchanged just £500 spending money at an airport bureau de change before going on holiday to Europe, they could be saying goodbye to £493 million pounds.

Specialist providers apart, the best exchange rate for buying euros was at The Post Office (2.3% more expensive than Currencies Direct) and also The Post Office for US dollars (2.5% more expensive than Currencies Direct).

Phil McHugh, senior foreign exchange dealer at Currencies Direct, said: "Our survey highlights the big difference in currency exchange rates offered between the high street, airport bureaux de change and specialist providers.

"People often plan their foreign holidays well in advance, shop around for the best deals and book early to save money, yet they seem to leave their common sense at the airport drop off when it comes to changing holiday cash.

"Travellers should take a few minutes to check exchange rates online or over the phone in advance of their holiday and arrange with a foreign exchange specialist like Currencies Direct for their money to be delivered to their home or work, saving themselves time, hassle and cash in the process."

Currencies Direct has ten top tips for people heading on holiday this summer:

1. Think ahead about your currency needs and avoid changing your money at bureaux de change, particularly at airports

2. Shop around for the best rate - don’t just automatically go to your bank or post office. Specialist providers can offer much better deals

3. Beware of hidden charges and high commission rates. A good headline rate does not necessarly mean the best value for money

4. Watch the currency markets and consider buying your holiday money a few weeks before you travel if the prices are favourable

5. Talk to a specialist foreign exchange firm about the best time to buy or sell

6. Avoid poor exchange rates by taking travellers cheques or currency cards with you instead of using credit or debit cards for large purchases

7. Travellers cheques or currency cards can also help avoid the hefty fees banks and credit card companies charge for using ATMs overseas

8. If travelling to the developing world or visiting several countries, consider taking US dollars, which can often be used instead of local currency

9. Use an established business to buy or sell currency, particularly if overseas. If you are not convinced, walk away - it is your money

10. If you are a regular traveller, consider fixing your exchange rate for future currency purchases with a specialist provider.

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