Must-read before going abroad: How to exchange from 50,000 to 500,000 yen most cost-effectively? The latest 4 major methods tested in 2025

Wait, let’s clarify the exchange rates first: How to exchange HKD, JPY, TWD?

Many people are eager to go abroad but don’t understand the concept of exchange rates. Taking December 10, 2025, as an example, TWD to JPY is about 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Similarly, if you want to understand how many TWD is equal to one HKD, you just need to check the spot exchange rate for HKD (about 1 HKD = 3.8 TWD). Mastering this logic allows you to judge the pros and cons of different currency pairs.

Exchanging foreign currency seems simple, but it actually hides huge cost traps. Someone spends 50,000 TWD but loses 1,500 TWD more than others— the difference lies in choosing the wrong currency exchange channel.

Why is it worth considering exchanging JPY now?

Japan is not just a travel destination; the yen itself has financial asset value.

Travel and daily life: Japanese merchants still mainly use cash (credit card penetration is only 60%), and purchasing agents, studying abroad, working holidays all require cash JPY.

Investment aspect: The yen is one of the world’s three major safe-haven currencies, alongside the USD and Swiss Franc. During market volatility—such as the Russia-Ukraine conflict in 2022—the yen appreciated 8% in a week, while the stock market fell 10%. For Taiwanese investors, holding JPY is like buying insurance for Taiwanese stocks.

From the beginning of the year to now (December 2025), TWD to JPY has risen from 4.46 to 4.85, a total appreciation of 8.7%. In the second half of the year, Taiwan’s foreign exchange demand grew by 25%, mainly driven by tourism recovery and hedging needs.

Bank counter currency exchange: The most traditional but most expensive method

Bringing cash TWD directly to the bank or airport counter to exchange for JPY is the most common choice.

How to calculate the cost?

Banks use the “cash selling rate” rather than the market spot rate, with a difference of about 1-2%. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD/JPY (which is 4.85 JPY/TWD), but some banks charge an additional handling fee of 100-200 TWD.

Calculations for 50,000 TWD:

• Taiwan Bank (no handling fee): about 242,500 JPY, losing about 1,500 TWD
• Cathay United Bank (200 TWD fee): about 2,200 TWD loss
• E.SUN Bank (100 TWD fee): about 1,800 TWD loss

Advantages: Safe, full denominations, staff assistance on-site
Disadvantages: Worst exchange rate, limited business hours, highest cost
Suitable for: Those unfamiliar with online operations, small urgent needs (like at the airport)

Latest cash selling rates comparison (2025/12/10):

Online currency exchange + airport pickup: The smartest choice before going abroad

If you plan ahead (3-7 days in advance), this is the most cost-effective solution.

How to operate?

1. Fill in the exchange amount, pickup branch (recommended at the airport), and pickup date on the bank’s website
2. Complete online remittance (Taiwan Bank’s “Easy Purchase” using TaiwanPay costs only 10 TWD)
3. Bring ID + transaction notification to the designated branch to pick up

Taiwan Bank and Mega Bank mainly offer this service, with 14 Taiwan Bank branches at Taoyuan Airport (including 2 24-hour branches).

Cost analysis: Taiwan Bank’s online exchange rate offers about 0.5% better than cash rate, with often no handling fee. For 50,000 TWD, estimated loss is 300-800 TWD, which is 50-70% cheaper than counter exchange.

Advantages: 24-hour ordering, best exchange rate, usually no handling fee, direct airport pickup
Disadvantages: Need to book 1-3 days in advance, cannot change pickup branch, pickup limited to bank hours
Suitable for: Those with strong planning, travelers who confirm amounts a week before departure

Foreign currency ATM: The emergency helper for those with no time to visit banks

Using a chip-enabled financial card to withdraw JPY at foreign currency ATMs outside banks, operational 24/7, with only 5 TWD handling fee for interbank transactions.

Limitations:

• Limited locations (~200 nationwide)
• Daily limit: SinoPac 150,000 TWD; E.SUN 150,000 TWD (including card spending)
• Fixed denominations: 1,000/5,000/10,000 JPY
• During peak times (like airports), cash may run out

Cost analysis: Withdrawing 50,000 TWD, only 5 TWD cross-bank fee deducted from TWD account, with a loss of about 800-1,200 TWD (including exchange margin).

Advantages: Instant withdrawal, high flexibility, low interbank fee
Disadvantages: Limited locations and denominations, cash may be sold out
Suitable for: Urgent needs, no time to visit counters, those with TWD accounts

Online currency exchange + counter withdrawal: A mid-tier strategy for batch buying

Use bank app to convert TWD to JPY and deposit into a foreign currency account (using the spot sell rate, better than cash rate), then withdraw cash at counters or ATMs as needed.

Cash withdrawal incurs exchange margin fees (minimum 100 TWD), but overall costs are still lower than direct counter exchange.

Cost analysis: After online exchange of 50,000 TWD, withdrawal costs about 500-1,000 TWD. The advantage is observing exchange rate trends and buying in batches at lows.

Advantages: Batch buying, better rates, 24-hour operation, can combine with fixed deposits
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply
Suitable for: Those experienced in forex, planning to invest in JPY fixed deposits (current annual interest rate 1.5-1.8%)

4 major exchange methods cost quick reference table

Current exchange environment: Rate hike expectations support JPY

In December 2025, Bank of Japan Governor Ueda Kazuo signaled a hawkish stance, with market expectations of a 0.25 bps rate hike to 0.75% on December 19 (a 30-year high). Japanese bond yields hit 1.93%, a 17-year high.

USD/JPY dropped from a high of 160 at the start of the year to 154.58, likely to oscillate around 155 in the short term, with medium to long-term forecasts below 150.

Implication for currency exchangers: JPY fluctuates 2-5% in the short term; it’s not recommended to exchange all at once. Staggered operations can average costs and reduce risks.

Value-added options after exchanging to JPY

Don’t let JPY sit idle without interest. The following 4 methods are suitable for small investors:

1. JPY fixed deposit: The most stable
Starting from 10,000 JPY, annual interest rate 1.5-1.8%, available at E.SUN and Taiwan Bank.

2. JPY insurance policy: Medium-term income
Savings insurance with guaranteed interest rates of 2-3%, offered by Cathay Life and Fubon Life.

3. JPY ETFs (00675U, 00703): Growth-oriented
Yuanta 00675U tracks the JPY index, with an annual management fee of 0.4%, suitable for fractional investment.

4. Forex trading USD/JPY or EUR/JPY: Swing trading
Both long and short positions, 24-hour trading, small capital required.

FAQs

Q: How much is the difference between cash rate and spot rate?

Cash Rate: The rate banks offer for physical cash, advantageous for immediate delivery, but 1-2% worse than spot rate.

Spot Rate: The T+2 settlement rate in the forex market, used for electronic transfers and foreign currency accounts, closer to international market prices.

Q: How much JPY do I get for 10,000 TWD?

Using the Taiwan Bank cash selling rate of 4.85, about 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY.

Q: What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If booked online, also bring transaction notification. Large amounts (over 100,000 TWD) may require source of funds declaration.

Q: Are there limits for foreign currency ATM withdrawals?

After October 2025, many banks lowered limits:

It’s recommended to split withdrawals or use your own bank card to avoid interbank fees.

Final advice

The JPY is no longer just “travel pocket money”; it’s an asset with hedging and investment value. Follow the two principles of “batch exchange” and “don’t leave the money idle after exchange” to lower costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or swing trading based on needs. This not only makes traveling more cost-effective but also adds a layer of protection during global market fluctuations. Remember, the first step to smart currency exchange is choosing the right channel.