Everything You Need to Know About London Money & Currency Exchange

Using London money wisely is one of the most important parts of your trip. As someone with both American and British bank accounts, I’m here to tell you the easiest ways to exchange currency, how to spend it, and how to prepare for your trip wisely.

Don’t fall into the common tourist dilemmas of bad exchange rates and foreign transaction fees!

Here’s my complete guide for how to pay for things in London, from carrying cash to using contactless, to what to do with those leftover pounds.

What is London Money?

The currency in the UK is British Pounds. Officially, it’s called “Pound Sterling,” and the abbreviation you’ll see is “GBP”.

The symbol is the pound sign: £.

Pounds are divided into pence, and 100 pence equals £1.

Currency comes in a variety of 4 notes (bills): £5, £10, £20 and £50.

Coins come in 7 denominations: 1 pence, 2 pence, 5 pence, 20 pence, 50 pence, £1 coins and £2 coins.

What to Call British Pounds

Most people in the UK simply call our currency “pounds.” But you might also hear “quid.”

A common phrase when purchasing an item might be “that’ll be 10 quid “, which means it costs ten pounds.

When referring to notes (banknotes, which Americans call “bills”), sometimes people use nicknames.

A “tenner” means either it costs ten pounds or refers to the ten pound note itself.

The same goes for “fiver”: vendors could say “that’ll be a fiver,” which means it costs 5 pounds. Or “do you have a fiver?” means, “do you have a 5 pound note?”

How to Pay for Things in London: Notes

In the UK, there are four different banknotes.

There is the £5, £10, £20 and £50.

Even though Queen Elizabeth died, her face is still on most banknotes, and it does not mean that your banknote is invalid.

You can still use Queen Elizabeth banknotes everywhere, and it will be a while before King Charles’ face is on new notes (probably mid-2024).

How to Pay for Things in London: Coins

As an American, at first I found the UK coins very confusing. But once you get the hang of it, it’s easy. They have a colour scheme!

The two smallest are the one pence coin and the two pence coin. These are both copper-coloured.

Next, in the silver color, are the five pence, twenty pence, and fifty pence pieces.

The largest coins are both gold and silver colored with two different metals. The one pound coin is smaller, and the two pound coin is larger.

If you have older £1 coins, you may not be able to use them. Compare them to the Royal Mint legal currency guide here.

Do I Need to Carry Cash in London? 

Generally there is no need to exchange currency in London because you don’t need to carry cash.

Sometimes it’s nice to have a few bills and coins for small transactions where there might me a minimum credit card fee (I still see this sometimes at corner shops: a.k.a. “offies” or off-license). 

You also might want some cash if you’re going to street markets, antique markets, or places where individual vendors might not have credit card machines, but most these days have a contactless payment option.

There generally is no tipping here, and every form of transport takes cards, so there’s no need to have cash on hand as soon as you land. 

But if you need to exchange currency in London, read on for my best tips.

Currency Exchange London: What You Need to Know Before You Do It

1. Research the Exchange Rate 

Before you arrive, familiarize yourself with the current exchange rate between your home currency and the value of the British Pound. This will give you an idea of how much money you can expect to receive in exchange and will help you avoid unfavorable rates or scams.

And there are a lot of scams, especially in airports and in touristy areas. 

Google is your friend, or you can use a currency converter app like XE.

A smart move is also to compare the exchange rate with the Bank of England’s official GBP exchange rate here.

It’s also helpful to know exactly how much you’re spending while out and about if you can just do a quick estimation in your head. 

2. Compare Exchange Options 

Don’t settle for the first exchange option you come across. Compare rates and fees offered by different exchange providers such as banks, currency exchange kiosks, and online platforms. 

Depending on where you’re staying, there may be a place to exchange currency in London near you. But don’t settle for the one down the street.

Look for reliable sources with competitive rates and low fees to get the most value for your money. 

3. Avoid Airport Exchanges & Train Station Kiosks

Airport currency exchange services often offer the worst exchange rates and high fees due to their convenience. If possible, avoid exchanging currency at the airport.

Instead, wait until you reach your destination and look for more favorable options such as banks or reputable exchange offices in the city. 

Back home you can call your local bank to see if they will exchange your leftover British Pounds at a more favorable rate.

Or, if you’re coming back to London again, stash that cash away somewhere safe and remember to bring it with you next time. 

4. Use Local ATMs

Using local ATMs is the most cost-effective way to access cash in any foreign country. Check if your bank has international partners or offers fee-free ATM withdrawals abroad, or try to find a credit union ATM, which is usually free. 

Be mindful of any transaction fees or foreign exchange conversion charges imposed by your bank, and inform them about your travel plans to avoid any issues with your card.

When you go to withdraw cash, it will offer you a choice of exchange rates. It will say “with conversion” (meaning they do the conversion at a terrible rate) or “without conversion” (where your bank does the exchange rate at a much better rate).  

⭐️ IMPORTANT: Choose “without conversion.” This means that your bank will give you a better rate and you get more money in the transaction. 

5. Find the Best Places to Exchange Currency in London

The best places to exchange money in London are real, reputable currency exchanges and banks.

Use a real exchange bureau, like the Bureau de Change at some Post Office branches, Thomas Exchange, or Sterling FX.

Some local UK banks will exchange money, too, though it depends on the branch and what currencies they trade.

Here’s the current list for 2024 of reputable and safe exchange bureaus in London.

West & Central London Currency Exchanges

• Sterling FX: Edgware Road. 105 Edgware Rd, Tyburnia, London W2 2HX
• Thomas Exchange Oxford Circus: 5 Market Pl, London W1W 8AE
• Eurochange Leicester Square: 45 Charing Cross Rd, London WC2H 0AN
• Holiday Money Exchange Tottenham Court Road: 48 Tottenham Ct Rd, London W1T 2EF
• Thomas Exchange The Strand: 402 Strand, London WC2R 0NE
• Bureau de Change at Holborn Post Office: 181 High Holborn, London WC1V 7RL
• Bureau de Change at Aldwych Post Office: 95 Aldwych, London WC2B 4JN
• Bureau de Change at Strand Post Office: 393 Strand, London WC2R 0LT
• Bureau de Change at Mayfair Post Office: 32A Grosvenor St, London W1K 4PA
• Bureau de Change at Baker Street Post Office: 111 Baker St, London W1U 6SG

City of London & East London Currency Exchanges

• Thomas Exchange St. Paul’s: 39 Ludgate Hill, London EC4M 7JN
• Thomas Exchange Cannon Street: 131, 133 Cannon St, London EC4N 5AX
• Thomas Exchange City of London: 48 Bishopsgate, London EC2N 4A
• Bureau de Change at Moorgate Post Office: 45 London Wall, London EC2M 5TE
• Bureau de Change at Farringdon Road Post Office: 39-41 Farringdon Rd, London EC1M 3JB
• Bureau de Change at Old Street Post Office: 185-187 Old St, London EC1V 9NP

North London Currency Exchanges

• Currency Exchange Swiss Cottage: 8, Northways Parade, Finchley Rd, South Hampstead, London NW3 5EN
• Bureau de Change at Kilburn High Road Post Office: 79A Kilburn High Rd, North Maida Vale, London NW6 6JG
• Bureau de Change at Hampstead Post Office: 79-81A Hampstead High St, London NW3 1QL

South London Currency Exchanges

• Bureau de Change at London Bridge Post Office: 19A Borough High St, London SE1 9SF
• ACE-FX London Bridge: Unit 37, Bridge Station, Lower Concourse, London SE1 9GP

London Money: Final Tips

However much cash you carry or don’t carry in London, be mindful when using ATMs and flashing your cash. Many London ATMs are outside on the sidewalk, which can attract unwanted attention.

Find a bank branch that has an ATM inside, or pop into a large grocery store which will often have one inside. 

Be safe, keep your money close, and mind that exchange rate! 

London Money & Currency Exchange FAQ

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