Is exchanging Japanese Yen the most cost-effective? A breakdown of the costs for four different methods

NTD to JPY has reached the 4.85 level, and travel to Japan and JPY investments are picking up again. But do you know? Different methods of exchanging for yen can cost you an extra 1,500 NT dollars or more. What’s the most cost-effective way to exchange for yen? Actually, you need to look beyond just the exchange rate—consider fees, withdrawal charges, and even whether you’re sitting on the sidelines without investing. We’ve organized the latest four currency exchange channels for you, using real numbers to show which one really saves you the most money.

Don’t be fooled by the exchange rate! Costs of each method are clear

Many people think bank exchange rates are similar, but when compared, they find that exchanging 50,000 NT dollars through different channels can result in a difference of 200-500 yen, with accumulated fees starting from 1,500 NT dollars in losses.

Here’s the cost situation for major banks at the end of 2025:

Counter cash withdrawal (most expensive)

• Cost: Loss of 1,500-2,000 NT dollars
• Reasons: Cash selling rate difference, service fees, teller time costs
• Suitable for: Urgent airport needs, those unfamiliar with online methods

Online currency exchange + airport pickup (most cost-effective)

• Cost: Loss of 300-800 NT dollars
• Reasons: Exchange rate discount of about 0.5%, most are fee-free
• Suitable for: Planned trips, those needing cash

Online exchange + foreign currency ATM withdrawal (moderate cost)

• Cost: Loss of 500-1,000 NT dollars
• Reasons: Need foreign currency account, interbank fees, withdrawal limits
• Suitable for: Buying in installments, those wanting to invest in yen deposits

Foreign currency ATM direct withdrawal (most flexible)

• Cost: Loss of 800-1,200 NT dollars
• Reasons: Average exchange rate, fewer locations, cash shortages during peak times
• Suitable for: Urgent, unplanned needs

In short, if you have time to plan, online exchange saves the most. If you want to buy in installments, online exchange plus foreign currency ATM is the most flexible. Only if you truly have no time should you consider counter cash at the airport.

How to choose among 4 exchange methods? Decide based on your budget

Method 1: Counter exchange (cash sale)

Bring NT dollars to a bank branch or airport counter, and exchange immediately for yen cash. Simple and convenient, but at a cost—rates are worse (1-2% below spot rate).

By the end of 2025, cash selling rates at banks are around 0.2058-0.2069 NT$/JPY, meaning 1 NT$ can get about 4.70-4.86 yen. The difference seems small, but exchanging 50,000 NT$ results in a 150-300 yen difference (about NT$30-60). Plus, some banks charge 100-200 NT$ for counter service, adding up.

Counter cash exchange allows you to get cash immediately, suitable for urgent airport needs. The downside is it’s less economical and limited by bank hours (weekday 9:00-15:30, closed on holidays).

Method 2: Online exchange (spot rate) + ATM withdrawal

Use bank app or online banking to transfer NT$ into a foreign currency account, using the spot sell rate (about 1% better than cash). If you need cash, go to a foreign currency ATM to withdraw, or just keep yen in the account for deposits or investments.

Advantages: 24-hour operation, better rates, ability to buy in installments. Disadvantages: need to open a foreign currency account (most banks free), and extra interbank withdrawal fees of 5-100 NT$.

Suitable for: Those with forex investment experience, wanting to average their purchase cost, or planning to transfer yen into deposits (current annual interest 1.5-1.8%).

Method 3: Online currency exchange + designated branch pickup

This is a recent service promoted by Taiwan Bank and Mega Bank. Fill in the amount, currency, and preferred branch online; the system automatically exchanges at a discounted rate (usually no fee or just 10 NT$). Then, bring ID and transaction notice to the designated branch to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange is especially cost-effective, with about 0.5% discount, nearly no fee (only 10 NT$ via Taiwan Pay). Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, very convenient for pickup before departure.

This is currently the lowest-cost cash method, but requires reservation (at least 1-3 days in advance), and pickup time and branch cannot be changed on short notice.

Method 4: Foreign currency ATM direct withdrawal

Bring your chip-enabled bank card to a foreign currency ATM, select “withdraw foreign currency” → “Yen” → amount, and cash will be dispensed. It’s 24/7, only 5 NT$ fee per interbank transaction, directly debited from NT$ account. Sounds very convenient, but there are pitfalls:

1. Limited locations—about 200 ATMs nationwide, not available at every bank.
2. Fixed denominations: only 1,000/5,000/10,000 yen.
3. During holidays or busy times (like airports), cash may run out.
4. Daily withdrawal limit (10-15万 NT$), requiring multiple trips if large amount needed.

If you need yen urgently and live near an ATM, this method is good. But don’t wait until the day before your trip to withdraw, or you might find no cash available.

How to execute after choosing your method?

For Method 1 (counter): Bring ID and passport (foreigners bring passport + residence permit), enough NT$ cash, and go directly to a bank branch or airport counter. They will give you cash based on the current rate and denomination options (usually 1,000, 5,000, 10,000 yen). For amounts over NT$100,000, you may need to declare source of funds, so plan accordingly.

For Method 2 (online exchange + ATM): First, open a foreign currency account via bank app or online banking (most are free and can be done same day). Second, fill out the exchange order, input the NT$ amount, and the system will settle at spot rate, crediting yen to your account. When needed, take your bank card to a foreign currency ATM to withdraw, or wait until the yen is settled to withdraw.

For Method 3 (online exchange): Visit the bank’s website, go to online exchange page, select JPY, amount, and pickup branch (especially Taoyuan Airport branch), and schedule a pickup date (at least 1 day later). Complete the transfer, save or print the transaction notice. On the scheduled day, bring ID and notice to the branch to pick up cash. The whole process takes only 3-5 minutes.

For Method 4 (ATM withdrawal): Bring your chip-enabled bank card, locate a foreign currency ATM (check in advance). Insert card, select “withdraw foreign currency” → “Yen” → amount, and cash will be dispensed. Each interbank transaction costs only 5 NT$, making it the cheapest withdrawal method. But avoid peak times, as cash may be unavailable.

After getting yen, how to maximize returns?

Many people just exchange and then sit on their hands, letting the money idle. But after exchanging yen, there are several ways to keep making money.

Steady: Yen fixed deposit

The simplest is to deposit yen into a bank fixed deposit, with current annual interest rates around 1.5-1.8%. E.g., E.Sun Bank and Taiwan Bank offer foreign currency deposits starting from 10,000 yen. Lock in for a year, and earn some interest—especially if you believe the yen won’t fall sharply.

Mid-term: Yen insurance policies

Buy savings insurance in yen through Cathay or Fubon Life, with guaranteed interest rates of about 2-3%. You can also lock in exchange rates, suitable for those wanting to “embrace yen” but worried about exchange rate reversal.

Growth: Yen ETFs

For example, Yuanta 00675U, tracking the yen index, can be bought as fractional shares via brokerage apps. With monthly dividends and yen appreciation, you can gain dual benefits. Management fee is about 0.4%, making it a cost-effective tool. Regular investing in yen ETFs is like dollar-cost averaging, spreading out your purchase to reduce risk.

Swing trading: Forex trading (USD/JPY, EUR/JPY)

If you’re interested in currency fluctuations, you can trade yen directly on forex platforms (like Mitrade), trading currency pairs such as USD/JPY or EUR/JPY. Benefits include long/short options, 24-hour trading, small capital requirements, and low spreads with zero commission. But it’s riskier—recommended for experienced traders with small positions.

Yen is one of the three major safe-haven currencies and can hedge against Taiwan stock market volatility. But in the short term, global arbitrage unwinding or geopolitical tensions (Taiwan Strait, Middle East) may weaken the yen. Whether investing or depositing, dollar-cost averaging and setting stop-losses are key.

Is now a good time to exchange yen? When is the best entry point?

In 2025, NT$ to JPY appreciated from 4.46 at the start of the year to 4.85 at year-end, an 8.7% increase. What does this mean? Those who exchanged earlier made a small profit just from the exchange difference.

From the central bank’s perspective, the Bank of Japan (BOJ) completed rate hikes in December 2025, raising the benchmark rate to 0.75% (a 30-year high), and Japanese government bonds’ yields hit 1.93%. This increases yen’s attractiveness. Meanwhile, the US is entering a rate cut cycle, narrowing the interest gap and favoring yen appreciation.

Technically, USD/JPY has fallen from 160 at the start of the year to around 154-155 now, with short-term fluctuations between 155-157, but medium to long-term forecasts suggest below 150. In other words, the yen still has room to appreciate.

So, is it worthwhile to exchange yen now?

Answer: Yes, but do it in installments.

Don’t exchange all at once, as there could be 2-5% short-term volatility. It’s better to exchange 1-2万 NT$ monthly or a fixed amount weekly, spreading risk. Even if the rate fluctuates short-term, your average cost will be more reasonable. After exchanging, immediately move the funds into deposits or ETFs to let the yen generate interest.

Over the past three months, forex demand in Taiwan increased by 25%, mainly driven by travel recovery and institutional hedging. Early 2026, this trend is expected to continue. Exchanging now not only makes travel more economical but also adds a layer of asset protection.

Common misconceptions about exchanging yen

Q1: Is the cash exchange rate very different from the spot rate?

Yes. The cash rate (bank’s rate when accepting cash) is usually 1-2% worse than the spot rate (account transfer rate). For example, with 50,000 NT$, cash exchange might cost an extra 300-500 yen. If you’re not in a hurry for cash, online exchange into your account is more economical.

Q2: How much yen do I get for 10,000 NT$?

Based on 2025 end rates (~4.85 NT$/JPY), 10,000 NT$ can get about 48,500 yen (cash rate) or 48,700 yen (online spot). The difference is about 200 yen (~NT$40), but over large amounts, it adds up.

Q3: What documents are needed for foreign currency exchange?

Counter: Bring ID and passport (foreigners also bring residence permit). If pre-booked online, bring transaction notice. Minors under 20 need parental consent. Amounts over NT$100,000 may require source declaration.

Q4: Are there daily limits at foreign currency ATMs?

Yes. Most banks limit around NT$100,000-150,000 per day. For other currencies like RMB, limits are lower (around NT$20,000 per day). For large amounts, consider spreading over multiple days or using online exchange to get cash.

Q5: Do I have to invest after exchanging yen?

Not necessarily, but leaving money idle is wasteful. Even depositing in a bank fixed deposit (interest 1.5%) earns some return. If worried about exchange risk, fixed deposits are safest. For higher growth, ETFs or forex trading can be considered. The key is not to just exchange and do nothing—let the money work for you.

Summary: The two biggest secrets to cost-effective yen exchange

In summary, yen is no longer just for travel money but also a hedge and investment asset.

Secret 1: Choose the right channels Online exchange + airport pickup or online exchange + foreign currency ATM can save over NT$1,200 in costs. Counter cash is a last resort.

Secret 2: Use dollar-cost averaging, don’t sit on your hands after exchanging Don’t gamble on the rate moving favorably all at once; buy in installments to average your cost. After exchange, immediately transfer into deposits, ETFs, or forex to let the yen generate interest. This way, you not only enjoy cheaper trips but also add a layer of asset protection during market volatility.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move into yen deposits or ETFs. Following these steps makes exchanging yen truly the most cost-effective.