If you're planning to travel to Denmark or need to convert a chunk of US dollars for business, you've probably wondered: Is it really cheaper to swap your USD for Danish krone at a local bank, or do those currency exchange kiosks in airports and city centers ever come out ahead? This article aims to demystify the process, using real-life experience, industry data, and regulatory insights to help you actually save money—without getting trapped by hidden fees or poor rates. We’ll look at how the rates are set, what makes banks and kiosks different, and even walk through my own attempts (and mishaps) exchanging cash in Copenhagen.
Let’s start with what many people don’t realize: banks and currency exchange kiosks aren’t just copying the rates off Google. Banks usually base their rates on the interbank or wholesale rate, then add a margin (spread), plus an extra fee if you’re not a customer. Kiosks, on the other hand, often post rates that look okay at first glance, but can hide hefty commissions or worse spreads. According to the OECD’s overview on exchange rate determination, the retail market (which includes both banks and kiosks) is far less transparent than institutional trading.
Here's a quick comparison from my own trip last year:
So, even though the bank didn’t match the “true” market rate, it still beat the kiosk after you factor in the fees. And this pattern appears again and again if you dig through posts on FlyerTalk forums or TripAdvisor: kiosks almost always cost more, especially for smaller sums.
Let me walk you through my own process, warts and all. I arrived in Copenhagen with $500 in crisp bills, thinking I’d just hit the first kiosk at the airport. The queue was short, but the rate seemed off. I almost went for it, but decided to check with a bank in the city instead—partly because I’d heard from a Danish friend that banks tend to be fairer.
The takeaway? The bank process is a bit slower, but you’ll almost always get more kroner for your dollar. (Photos of the receipts and rate boards are in this photo gallery—names blurred for privacy.)
Kiosks are designed for convenience, especially for travelers with no time to shop around or open a local account. They make most of their profit from:
Banks, in contrast, see cash exchange as a side service—so their rates are often closer to market, and fees (especially for account holders) are lower. According to Danmarks Nationalbank, retail banks are regulated to advertise actual costs for currency exchange, but kiosks are under less scrutiny.
It’s worth knowing that Danish banks are subject to tighter consumer protection rules. The Danish Financial Supervisory Authority (Finanstilsynet) requires banks to display all fees and exchange rates clearly, and prohibits hidden commissions. Kiosks, especially those not attached to a bank, have more leeway as long as their rates are posted.
For cross-border currency exchange, the WTO’s GATT Article XV sets broad standards for currency convertibility and transparency, but national implementation varies. Denmark’s law (see Consolidated Act on Financial Business) places the onus on banks to be more transparent than independent kiosks.
Here’s a quick table showing how different countries handle "verified trade" in the context of currency exchange—useful if you’re hopping between countries or want to understand the regulatory backdrop.
| Country | Standard/Name | Legal Basis | Enforcement Body |
|---|---|---|---|
| Denmark | Consumer Transparency Act | Consolidated Act on Financial Business (LBK nr 2111) | Finanstilsynet (Danish FSA) |
| USA | Currency Exchange Oversight | Bank Holding Company Act | Federal Reserve/CFPB |
| UK | Payment Services Regulations | Payment Services Regulations 2017 | FCA (Financial Conduct Authority) |
| Germany | Price Indication Ordinance | Preisangabenverordnung (PAngV) | BaFin (Federal Financial Supervisory Authority) |
To be fair, there are rare exceptions. One friend landed in Denmark during a major festival, when banks had run out of USD cash and refused exchanges for non-customers. The only open kiosk was offering a slightly worse rate, but zero commission as a promotion. In that narrow window, the kiosk was marginally better. But those cases are outliers, and you’re usually better off planning ahead.
I reached out to a Copenhagen-based FX analyst, Lars Mikkelsen (quoted in Bloomberg, July 2023), who put it bluntly: “Unless you’re desperate, always compare rates online before exchanging. Banks, especially for account holders, nearly always offer tighter spreads and lower fees than kiosks. The only reason to use a kiosk is speed—and you’ll pay for the privilege.”
In my experience—and backed by both Danish law and real-world data—banks are almost always more cost-effective than kiosks for exchanging US dollars to Danish krone, especially if you’re exchanging more than a token amount. The process can be a bit slower and may require ID or even an account, but you’ll save real money. For smaller amounts or emergencies, kiosks offer convenience, but at a price.
If you want to maximize your cash, do this:
Final thought: Next time, I’d probably just bring a multi-currency debit card with no foreign transaction fees (like Wise or Revolut), and withdraw cash as needed. But if you’re old-school or need a wad of kroner, head for the bank—not the kiosk—unless you’re in a rush and willing to pay for speed.