If you have ever compared the exchange rate on a finance site to the one your bank gave you, you have seen the gap between the mid-market rate and the retail rate.
What the mid-market rate is
The mid-market rate is the midpoint between the global buy and sell prices for a currency — the rate you see quoted on financial news. It is the fairest reference point, but it is not usually the rate offered to consumers and businesses.
Where the difference goes
Providers add a margin above the mid-market rate. That spread is a primary way currency conversion is monetized. The smaller the spread, the closer you get to the true rate — and the more of your money arrives at its destination.
Use it as a benchmark
Treat the mid-market rate as your yardstick. Compare any quote against it to see the real cost of a transfer.
Compare the cost of different margins in our business calculators, or explore sending abroad.