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Walk into any UK high street and you'll find a currency exchange shop promising "no commission" on pound to euro deals. Look online and you'll see a dozen apps boasting about "real exchange rates." So why does everyone still end up with a different amount of euros in their pocket?
The answer is that there is no single "best" way to convert pounds to euros. Every method has trade-offs. The cheapest option might be slow. The fastest might skimp on customer service. The most convenient card might hide its costs in the exchange rate rather than the fee. This article compares the main ways to move money from pounds to euros so you can decide which trade-off actually makes sense for your situation.
Whether you're going on a weekend city break or buying a house abroad, you'll likely use one of these four routes: banks, online currency brokers, multi-currency cards, or cash.
Banks are the default option for many people because they're familiar and regulated. You can order euros at your local branch, or arrange a bank transfer to a European account. However, convenience comes at a price. High-street banks typically add 2% to 4% on top of the real mid-market exchange rate. For a £1,000 transfer, that might mean the difference between €1,090 and €1,120 – around £25 you'll never see again.
Some banks do offer better deals for existing customers. A few current accounts now provide fee-free card spending abroad, but that doesn't mean you get the actual market rate. The card network's rate still includes a small margin, and ATM withdrawals will usually carry a fee. If you only need a few hundred pounds in cash for a weekend away, a bank can be fine. For anything larger, you're overpaying.
This is the main alternative to a bank. Companies like Wise, Revolut, OFX, and TorFX operate as currency brokers. Instead of adding a margin to the exchange rate, they give you a rate very close to the interbank rate and charge a transparent fee. On a £2,000 transfer to a euro bank account, you'd often keep the costs under 1% – and you'll see the exact rate and fee before you confirm.
What's the catch? You're not walking out with cash. Most brokers require you to make a bank transfer to fund the exchange, so the whole process takes one to three working days. There are also minimum transfer amounts – sometimes £250 or £1,000 – and you'll need to verify your identity. If you're sending money to a European vendor or buying a property, the time spent is usually worth it. If you need euros on the spot, skip this option.
For a more detailed walk-through of the exact steps, I've written a step-by-step guide to converting pounds to euros that covers the mechanics, including reference numbers and IBANs.
Multi-currency cards have become hugely popular for travellers, and for good reason. Load pounds onto the card, convert them to euros at a good rate, and then spend like a local across Europe. Cards from Revolut, Monzo, and Chase are the most common ones, and under certain conditions they offer the true interbank rate with zero fees.
But the "certain conditions" part matters. Weekend exchange rates often include a 1% markup, and the free monthly ATM withdrawal limit is usually just £200 to £250. Withdraw more than that and you'll pay around 2% in fees, which can quickly eat into your savings. Another hidden trade-off: when you load money onto the card, the exchange rate is locked in at that moment. If you don't spend it all, you're left with euros – and when you convert them back to pounds, you'll face a second spread. It's a double conversion cost.
There's still a place for physical cash in Europe, especially for small purchases or local markets. But getting cash in euros from a UK ATM, an airport kiosk, or a high-street bureau is usually the most expensive option of all. Airport exchange shops often advertise "no commission" while hiding a 5-7% spread in the rate. On £500 that's a £30-£35 loss – enough to pay for several meals.
If cash is essential, the least-bad option is to use a fee-free travel card at an in-country ATM, ideally withdrawing a larger amount in one go to avoid multiple transaction fees.
Once you've made the conversion, don't forget that the reverse journey – changing euros back into pounds – has its own traps. My guide on cutting hidden fees when converting euros to pounds explains exactly where those costs hide.
If you search "pound to euro" on Google, you'll see a rate like 1.1234. That's the mid-market rate – the wholesale price banks use when trading with each other. No consumer provider is going to give you that exact rate. They make money by selling you euros slightly above that price, and the difference is the spread.
Here's how to think about it: an online broker might quote 1.1200 and charge a £2.50 fee. A bank might quote 1.0950 with no fee. On a £1,000 transfer, the broker gives you €1,120, and the bank gives you €1,095. That's €25 more with the broker, before you even subtract the £2.50 fee. The "no fee" bank is still worse. The only way to compare properly is to calculate the total euros you'll receive after all costs, not just the headline fee.
This is especially important for people converting pounds to euros for a purchase in Europe. You might be tempted to use your bank because "it's simpler", but a £10,000 transfer could cost you £250-£300 extra. That's not a rounding error.
If you're sending money to a country like India, the same principle applies, but the spreads can be even wilder. The pound-to-INR walkthrough shows how much you can save by avoiding bank margins on high-volume transfers – something to keep in mind if you're sending to South Asia.
Choosing the best pound to euro method is rarely about one factor alone. Here's the honest breakdown of what you give up with each option:
For larger sums, a broker or specialist currency service is almost always the right move. They also allow you to set up a forward contract if you need to lock in today's rate for a payment in three months – something banks rarely offer.
If you're going on holiday for a week: a multi-currency card is probably your best bet. Withdraw a small amount of cash from a local ATM, and use the card for every purchase. Just check the weekend fee and the withdrawal limit before you leave.
If you're moving money to a European bank account for a rental deposit or a large purchase: use an online broker or a specialist service. The exchange rate difference between a bank and a broker on a £5,000 transfer is often enough to cover a dinner for two every night you're there.
If you're making a business payment to a supplier: you want the lower cost, but you also need certainty. Look for a broker that lets you lock in a forward rate. The best services will give you a quote within a few hours, and they assign you a dedicated account manager.
If you're sending euros to your own UK account because you're moving back, the comparison flips. That's where the step-by-step guide to converting euros back to pounds becomes more useful than this one, because the hidden fees work in exactly the same way.
Before you hand over your pounds, ask these four questions:
Get the answers right, and you can save three to five percent on every pound to euro conversion. For a trip it might just buy you a coffee. For a property purchase, it could buy you a complete renovation.
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