How are Train Station Exchange Rates Determined?

If you ever need to exchange money while travelling on a train, you should know how the train station exchange rate is determined.

There are many stores, supermarkets, and shops in busy train stations. Currency exchange offices are also in the stations.

Most international train stations have currency exchange shops. While each currency exchange provider offers a different rate, the train station exchange rates are generally high. For that reason, you might wonder how currency exchange providers set the rates.

This guide explores how train stations exchange rates. You‘ll also learn tips to help you get better exchange rates if you have to exchange your money at the train station. The good news is that we’ll also suggest the best alternative to train station exchange.

That said, lets get started.

How Train Station Exchange Rate Gets Determined

When travelling to a foreign country on a train, you might get tempted to exchange your money at the train station. But before you head to any currency exchange office at the station, you should inquire about the exchange rates and the commission fees.

The truth is that most currency exchange providers in these stations charge high commission fees of up to 22 percent to unsuspecting travellers. However, they advertise zero percent commission to make their exchange rates attractive, then add in hidden fees that make the services costly.

Further, the exchange rates offered in the stations are not competitive.

The best way to avoid high exchange rates and commission fees at train stations is by avoiding currency exchange there. You can exchange your money before travelling or after leaving the train station. The good news is that there are better alternatives like Knightsbridge FX, which offers competitively lower exchange rates.

Tips and Tricks for Exchanging Currencies in Train Stations

The train station exchange rate is not always the best. Thats because the currency exchange shops at the stations know that you might require the local currency for immediate needs, such as to board a train, taxi, or bus. So, they offer the worst exchange rates to make big profits.

However, if you insist on exchanging your money in a train station, then youll need to familiarize yourself with a few tips to help you get better exchange rates.

Here are the tips to consider when it comes to train station exchange.

1. Consider ATM Withdrawals

If you need a local currency at a train station, consider withdrawing the money from an ATM. However, please dont use the ATM near a currency exchange office at the station as it may also be offering high exchange rates for such transactions. Consider withdrawing your money from a nearby bank ATM.

2. Find Out the ATM Charges

Most ATM withdrawals at the train station charge a conversion fee of 1.5 to 5 percent plus other fees like ATM withdrawal fees. Also, the conversion fees are always hidden in the transaction.

3. Check the ATM Withdrawal Limits

Some ATMs at train stations may limit the withdrawal amounts on your account. A plausible reason for that is to prompt you to make many withdrawals to total up the cash you need. Remember, each withdrawal has a transaction fee, so you will end up paying more on fees. So, visit several ATMs and use one with the highest limit per transaction.

4. Contact Your Bank Before Using the ATM

If you have more than one account at one bank, contact your bank to determine where they‘ll pull the money from. That’s because some ATMs dont allow you to choose the account to withdraw your money. When you contact your bank, they will tell you your default account for ATM withdrawals abroad.

5. Compare the Currency Conversion Fees

Currency exchange offices at train stations have varying commission fees and other conversion factors. While some of the offices post their exchange rates on boards, know that there may be currency conversion fees not posted. For that reason, you need to shop around and inquire about the potential fees and commissions, then select the best.

6. Check the Interbank Exchange Rate

Go online to check the current interbank rate so that you can determine the exchange rate for a particular currency pair. Since most currency exchange providers add markup fees, their exchange rates might be a bit higher than the interbank rate. However, the deviation must not be extensive. The interbank rates will help you avoid unreasonable rates.

Where to Get the Best Exchange Rates: KnightsbridgeFX

Currency exchange at train stations can be expensive. For that reason, it is important to look for a better alternative. Thankfully, KnightsbridgeFX is ready to offer you the best rates.

The truth is that KnightsbridgeFX offers better exchange rates than train station currency exchange rates. We guarantee consistent bank-beating exchange rates to help you save money on your currency exchange. You dont need to exchange money at the station.

Why Currency Exchange at KnightsbridgeFX is better than Train Stations

Converting your currency at KnightsbridgeFX has numerous benefits compared to train station currency exchange, including funds security, better rates, and convenience.

Here are the reasons to choose KnightsbridgeFX over train station currency exchange.

Better Exchange Rates

KnightsbridgeFX offers better foreign exchange rates of as low as 0.1 to 0.5 percent to help you save hundreds or thousands of dollars from your currency exchange. On the other hand, currency exchange providers at the train stations offer high exchange rates of up to three percent, making them costlier.

Guaranteed Funds Security

Exchanging money at the train station can be challenging due to the numerous risks involved when you transact publicly. The good news is that Knightsbridge FX guarantees funds‘ security. So, when exchanging a large amount of money, you don’t need to worry about security as we are FINTRAC-regulated.

No Hidden Fees

Most currency exchange providers at train stations offer exchange rates with hidden fees, making their services more expensive. But at KnightsbridgeFX, theres no such a thing. For that reason, exchanging money at KnightsbridgeFX can help you save more.

Higher Transaction Limits

Even if train stations offer ATM currency exchange, the transaction limits can be lower than what you need. So, youll end up performing many transactions, which can be costly. But at KnightsbridgeFX, you can convert large sums of money at better rates.

Final Words

Getting a better train station exchange rate can be challenging. Thats because most currency exchange providers at train stations offer high exchange rates and commission fees, making them costly. While opting for ATM withdrawal can help you escape the costs, exchanging money at KnightsbridgeFX can help save you more money.