Disclaimer: The article below includes partner links. I receive a financial compensation from people clicking on them. This happens at no cost to you and helps me cover some of the expenses of running this website.
Moments after you step off the plane, you’ll notice the first exchange booths in Thailand. Should you go find an ATM? Exchange money at the airport? Or maybe check-in to your hotel first and sort this out later?
There are a number of ways you can get your hands on Thai Baht. The main issue will be the exchange rate, which can vary significantly between the different exchange options. Since the fee is usually not listed separately but included in the exchange rate, it’s easy to overpay without noticing.
If you want to check what the ‘official’ rate with no surcharge is, either today or on any given day in the past, you can do so with Oanda’s currency converter. Keep in mind that the Oanda rate is the ‘mid-market’ rate that banks use to deal with each other – as a tourist you’ll never get that rate. However, there are ways to get something close to it.
Before You Leave
You might be tempted to exchange Thai Baht before you come to Thailand. Try to avoid this or at least limit it to the absolute minimum; it’s by far the most expensive way to exchange money. In virtually all countries, including neighboring ones, you tend to lose 5 to 10% at the very least, if you exchange your local currency into Baht. There are a few other points you can consider in advance that’ll save you some extra cash – especially if you travel on a regular basis, with a larger amount or don’t already travel with USD.
And if you want to find out other cash saving strategies in addition to money exchange, check out our ebook, Thailand Starter Kit – Save Cash, Land a Job, Avoid Pitfalls, and More. It helps you save over hundreds of hours and thousands of dollars as expats in Thailand.
Bring Any Cash in USD
If you absolutely have to bring cash, exchange it into USD first and then exchange the USD into Baht once you’re in Thailand. That works because exchange rates for USD are so much better that even exchanging them twice is cheaper than exchanging two lesser used currencies (regardless in which country). The same goes when you leave: Exchange your left-over THB while you’re still in the country.
Be Aware of Regulations
Keep in mind that if you bring more than USD 15,000 (this used to be USD 20,000) into the country (or the equivalent in any other foreign currency), you’ll have to declare it at the border. It’s not illegal as some people may think, but you may be asked to provide some information as to where the money comes from or what you plan to do with it. Personally, I prefer not to have that much cash on me – even if it’s just to carry it to the bank. If you do go that way, I recommend you don’t cut corners on safety: Do yourself a favor by avoiding taxi touts and pre-book an airport transfer from a reputable company online.
Book As Much as Possible Online
Some of the best deals, savings and alternatives to hotels are available online only. Any of those deals you can pay in your home currency by credit card provides you not only with an instant saving on the actual booking, but also means that’s less money you have to exchange in cash. This is not only true for accommodation, but nowadays you can book a lot of things online and by mobile – including taxis when you use a ride sharing app like Grab.
My usual procedure to get cash exchanged at decent rates when traveling is to just withdraw a larger amount at an ATM. However, most banks in Thailand now charge a THB 200 fee on top of any fees your own bank charges, including fees hidden in inflated exchange rates (usually in the range of 0.5% to 1% per transaction, depending on your bank). Charles Rahm has a lot more details on ATMs. In case you are using a credit card, the exchange fees tend to be significantly higher than with debit cards (typically 2% to 2.5%).
Over the last few years, local ATMs and even companies have started offering to charge you in your credit card’s currency instead of THB. In any single instance I’ve witnessed so far, this resulted in an exchange rate significantly worse (5% and more) than that of your credit card company (usually less than 2.5%).
If you’re set on using ATMs, travel frequently and happen to be a US citizen, consider opening a checking account with Charles Schwab. They offer a debit card that will reimburse all foreign ATM fees. For residents of other countries, there’s at least one bank that has a similar offer, waiving foreign ATM withdrawal fees. It’s usually a good deal and worth looking up if you travel at least semi-frequently.
Traveler’s Checks (TCs)
TCs used to be a way to save some money on fees and exchange rates. Since fees for traveler’s checks were increased from THB 33 to THB 153 per check a few years back, this is mostly a thing of the past. The TC exchange rates tend to be worse than cash, with Siam Commercial Bank being the only exception: the bank offers slightly better rates for TCs than cash, but still nothing better than what you get at Bangkok Bank for cash (0.87%). If you take the check issuing fee into account, you’re better off bringing a debit card if you consider cash too risky.
Cash Exchange Options and Rates
Bringing cash to Thailand and exchanging it in the country is a surprisingly effective way to handle things – assuming you exchange it at the right place. A number of places provide reasonably competitive rates, but there are some that are out-of-this-world good.
Bank (Exchange) Counters
Bank-owned exchange counters are widely available in tourist areas, from airports to night markets. Their exchange rates are in the same region as what most credit card companies will charge you for payments or withdrawals in a foreign currency. Not as good as what a debit card gets you, but at least there’s no additional fee; it’s an acceptable option if you only exchange a small amount.
If you exchange cash at one of the commercial bank branches that are located throughout the city, you’ll pay roughly the rates listed below. Their rates at exchange counters in tourist areas and at the airport are higher.
|Siam Commercial Bank||1.05%|
Another option would be to go directly into an official bank branch, give them your debit card and ask for a cash advance or a cash withdrawal. You’ll have to bring your passport, but some banks won’t charge you an additional fee, so it’s just whatever your card charges. Depending on your bank card, it may be cheaper than other options (e.g. ATMs). However, don’t do that with a credit card, as you’ll be hit with withdrawal and cash advance fees on top, which will end up being even more expensive.
Money Exchange Offices
A better alternative to bank-owned exchange counters are major, locally-owned, money exchange offices. These tend to offer the best deal, bar none, and can save you more than 90% on your exchange fees, effectively costing you as little as 0.06% of the transaction amount. These exchange bureaus usually require your passport, but sometimes settle for a (Thai) driving license. The best rates are to be had at their main branches, often located in downtown Bangkok, somewhat removed from main roads. Unless you plan to exchange more than USD 10,000, the difference might not be worth it; you can go to one of their more conveniently located satellite branches without losing much in the exchange.
Some exchange bureaus like ‘Super Rich‘ now operate branches at Skytrain stations and while their rates there aren’t as good as at their main locations, they’re still far more competitive than what you would get at a bank.
If you are buying Thai Baht, you get the best rate with USD 50 or 100 bills. Smaller denominations net slightly lower rates. Exchange offices in Thailand don’t tend to be as strict as those found in some other developing countries: bills don’t necessarily have to be in crisp condition to get the best rate, but they should be fairly recent (e.g. US Dollar notes issued before 2009 might not get accepted at some places).
Below, you’ll find a comparison of the exchange office rates. Most banks and exchange offices don’t have a separate exchange fee; it’s already included in the exchange rate in the form of a small surcharge over the ‘official’ interbank forex rate. The ‘fee’ listed below was calculated by splitting the spread between buying and selling rates into equal parts. Technically, the surcharge can be different for buying and selling, but to keep things simple, I’ve combined it into a single figure. The data is based on a survey completed on December 14th, 2015 for the buying and selling of a USD 100 bill.
In addition to the fees, I’ve also linked the exchange offices to their Google maps location. Given the small difference in fees, you might want to just go to whichever is located most conveniently for you.
|Twelve Victory Exchange Co.,Ltd.||0.07%|
Thailand is in general a relatively safe travel destination. During the day there tend to be few issues with pick-pockets, bag snatchers and other petty crime. Avoid crowded places (busses, trains), nightlife areas (including nearby sidewalks) and other places popular with tourists (e.g. markets) while carrying a lot of cash on you.
In case you arrive with a lot of cash that you plan to exchange locally, consider booking your airport transfer in advance with a reputable company. It reduces the odds of having issues with your driver and if you forget something in the car, there is a higher chance of seeing it again. You can use taxi2airport.com to compare available options and book your transfer. It’ll cost more than hailing something upon arrival, but depending on how much you’re carrying, it may be worth the peace of mind.
Open a (Tourist) Bank Account
If you travel to Thailand on a regular basis, consider opening a bank account (which you can do on a tourist visa). Once you have a bank account, you can use a comparison website like Moneytis. It’s not only free to use, but they give you a list of the fastest, cheapest, and most popular money transfer providers in their network.
They also reveal transfer fees and charges and show you how much money you’ll save by using one of their providers. With a $1000 transfer, for example, you can potentially save $45. This beats the transfer fees and charges you’ll pay when transferring money through any bank directly and it’s a whole lot safer than a suitcase full of cash. Depending on which country you are transferring the funds from, it can be as cheap (sometimes even cheaper) than SuperRich.
You can read a full review of Moneytis here or compare different options directly here:
Other Ways to Save Money
Making sure you don’t get a bad deal when exchanging cash is a good start to saving money. However, that’s just the start: You can actually save up to 30% on flights from and to Thailand, get private rooms for as little as 10 USD per night in Bangkok and take advantage of half-price taxis. Read this guide to Thailand discounts, deals and coupons to find out how.