Purchasing Power: Navigating The British Pound As An Investment Option

There are several ways to buy British pounds for investment, including through a global trading account or by exchanging USD for GBP at a bank or currency exchange office. Some sources recommend using a travel money card, such as the Wise card, which can be used to spend and withdraw money abroad with low fees. It's important to shop around for the best exchange rates and consider factors such as convenience and security when deciding where to buy British pounds.

Online currency exchange

Wise (formerly known as TransferWise): Wise is a well-known currency exchange platform that offers transparent and low fees. You can order British pounds online and have them delivered to your home, or you can use their travel money card. The Wise card has a one-time fee and can be used with mid-market rates and low, transparent fees in 150+ countries.

Banks: Some major US banks, such as Wells Fargo, offer currency exchange services for their customers. You may need to have an active checking account with the bank and order your currency in advance. Banks may also offer buy-back services for unused currency, but the exchange rate may be different.

Specialist Currency Exchange Providers: Companies like Xchange of America and CXI offer online currency exchange services. You can order British pounds online and have them delivered to your home. These providers often offer a wide range of currencies and can dispatch them quickly if you pay with a debit or credit card.

International Money Transfer Services: Services like Xe offer international money transfer services, allowing you to send money online securely and easily. They use live mid-market rates and provide features like live tracking, flexible delivery, and payment options.

Forex Trading Platforms: If you're looking to invest in foreign exchange (Forex) trading, you can use online trading platforms like Alpari.com. These platforms allow you to speculate on currency values and trade currencies online. However, it's important to note that Forex trading comes with significant risks and may not be suitable for everyone.

When using online currency exchange services, it's important to compare exchange rates, fees, and delivery options to ensure you're getting the best deal. Additionally, make sure to use trusted and secure platforms to protect your financial information.

In-person at a bank

If you want to buy British pounds in person at a bank, there are several options available to you. Firstly, it's important to note that not all banks offer currency exchange services, so it's worth checking with your bank beforehand to avoid a wasted trip. Some banks that do offer this service include Wells Fargo and Bank of America.

In most cases, you will need to be an account holder with the bank to access their currency exchange services. This may require an active checking account, and you may also need to order your currency in advance. You can do this by logging into your online banking service and navigating to the travel money section, where you can enter the amount of foreign currency you need and pay directly from your bank account. The bank will then inform you of when your currency will be ready for collection, which could take up to a week.

Some banks also allow you to purchase foreign currency in person without placing an order in advance. This may be done by paying in cash at a bank branch and collecting your British pounds instantly. However, it's important to note that banks may not hold a high level of stock of foreign currencies, so calling ahead to check availability is always a good idea.

Additionally, some banks offer buy-back services, allowing you to sell any unused British pounds back to the bank after your trip. However, the exchange rate for this may be different, and you could end up getting back less than you spent initially.

In-person at a currency exchange office

If you need to buy British pounds, one option is to visit a currency exchange office in person. These offices are typically located in city centres and at airports, and they offer a convenient way to get the currency you need. Here's what you need to know about buying British pounds in-person at a currency exchange office:

Finding a Currency Exchange Office

To find a currency exchange office near you, search online for "currency exchange" or "money exchange" along with your location. You can also look for specific currency exchange providers, such as CXI, which has branches where you can buy currency in person.

What to Expect

When you arrive at the currency exchange office, you'll need to provide them with your local currency, such as US dollars, in exchange for British pounds. Some exchange offices may also accept card payments. It's important to note that currency exchange offices set their own exchange rates and fees, so it's essential to shop around and compare rates before choosing a provider.

Advantages of Using a Currency Exchange Office

One advantage of using a currency exchange office is that you can often get your currency instantly, without having to place an order in advance. This can be especially useful if you need the cash immediately or if you're travelling on short notice. Additionally, currency exchange offices are easily accessible, especially in popular tourist destinations.

Disadvantages of Using a Currency Exchange Office

However, there are also some potential drawbacks to consider. Currency exchange offices may not always have the currency you need in stock, especially for less commonly requested currencies. Additionally, exchange rates at these offices are likely to include a markup or fee, which can be higher than the rates offered by banks or other financial institutions. As a result, you may get a less favourable exchange rate compared to other options.

In conclusion, buying British pounds in-person at a currency exchange office can be a convenient option if you need the currency right away. However, it's important to be aware of the potential drawbacks, such as higher fees and less favourable exchange rates. By comparing rates and shopping around, you can make an informed decision about whether a currency exchange office is the best choice for your needs.

At the airport

If you've left it to the last minute, you can buy British pounds at the airport. Most major airports have one or more currency exchange desks catering to travellers. However, there are a few things to bear in mind. You won't have a huge range of choices, which can mean that fees are higher than in city-centre locations. Exchange rates usually include a markup, which can be high, and there is little competition, so prices can be steep.

If you're flying from Heathrow, you can exchange currency with Travelex, which has stores and ATMs located before and after security in Terminals 2, 3, 4 and 5. You can pre-order online and collect before you fly, or just turn up and buy your currency in the airport.

Edinburgh Airport also has currency exchange services with Travelex, with the option to pre-order and collect in-store, or simply buy in-store.

London Stansted Airport has currency exchange services with ChangeGroup, with branches in the landside area, departure lounge, baggage reclaim zone and 26 ATMs. You can pre-order online and collect, or just turn up and exchange.

Using a travel money card

Benefits of a Travel Money Card

• Security: Travel money cards are a safe way to carry your money as they are not linked to your bank account. If your card is lost or stolen, you can easily freeze it by logging into your account and contacting the card provider.
• Convenience: With a travel money card, you don't need to carry large amounts of cash. The card can be used to make contactless, Apple Pay, and Google Pay™ payments, as well as for online purchases.
• Exchange Rates: Travel money cards often offer better exchange rates than traditional currency exchange services. For example, the Wise card offers mid-market rates and low transparent fees for spending in multiple currencies.
• Flexibility: You can manage your travel money card on the go using a mobile app. This allows you to top up your card, check your balance and transactions, and convert currencies in real-time.
• Acceptance: Travel money cards are widely accepted, with the Post Office card being accepted in over 36 million locations worldwide.

Things to Consider

• Fees: While travel money cards can offer good exchange rates, be sure to check for any additional fees such as ATM withdrawal fees, monthly maintenance fees, or inactivity charges.
• Currency Support: Ensure that the travel money card supports the currencies you need. For example, the Wise card supports over 50 currencies, while the Post Office card supports 22 currencies.
• Availability: Some travel money cards may only be available to residents of certain countries. For example, the Wise card is available in the US and over 30 other countries.

Overall, a travel money card is a great option for accessing your money when travelling to the UK. It offers convenience, security, and flexibility, allowing you to make the most of your trip without worrying about your finances.

Frequently asked questions