Backpackers looking to buy foreign currency have a variety of options and could also get hold of
online travel insurance.
Travellers should avoid buying their currency from airport exchanges as they frequently offer very high rates, according to online exchange rate comparison service FairFX.com.
The company's research shows that nearly half of travellers, many of whom could have bought
gap year travel insurance, believe that zero per cent commission equates to a free exchange and the website has called for more transparent advertising.
Stephen Heath, chief executive of FairFX.com, said: "What we're calling for is transparency to the consumer in terms of a simple message, so how many dollars or euros you can get for a pound rather than this very confusing mix of commission and rates."
He added that a quarter of travellers rely on airport exchanges to buy their currency and so unwittingly expose themselves to higher prices.
Research from FairFX shows that some regional airports charge 15 per cent commission, while high street exchanges charge as little as three per cent.
Downunder - try us out for the best in
gap year travel insurance.