If you are looking to exchange pounds to Euros you should research thoroughly to gain the best rate, as rates vary considerably between currency brokers. The first thing to bear in mind is that the currency market is never fixed and rates usually change from day to day, depending on many different factors.
When you check the exchange rate in the newspapers, the rate that they show is usually the interbank rate – this is the rate that banks charge each other when making very large transactions, and it is not the rate that you will pay for your currency exchange.
If you are using a credit card for your currency transaction, the usual rate is 1% to 2% above interbank rate – but of course the credit card companies often charge fees on top of this.
If you are converting cash, then the exchange rate will depend on the company you are dealing with but it could be up to approximately 4% higher than the interbank rate.
You also need to check whether they charge commission or fees on top of this. The interbank rate is a very good indicator of whether you are being quoted a good exchange rate or not, but it is unlikely that you will come close to the actual rate unless you are converting very large sums of money.
