What is the mid-market rate & how is it set?
The mid-market rate is the midpoint between the buy and sell prices of two currencies at any time. Basically, the rate between what a buyer is prepared to pay and what the sellers is prepared to sell for.
These mid-market rates are in real-time and updated every minute during trading hours.
Are you getting the real mid-market rate?
Since the mid-market rate is set by how much the bank is willing to buy for and the seller is willing to sell for, the market naturally sets the fairest, most transparent exchange rate.
Each organization could be using different data to calculate the mid-market rate, so depending on what they are using, the rate could vary slightly. But there shouldn’t be any huge jumps in rate from one company to another.
What should you look out for when exchanging your currency?
‘No fee’, ‘zero commission’ or ‘our best rates’.
Day rates can mean that the organization charges a margin on top of the mid-market rate, but isn’t transparent about the fee. Without that transparency, you could be paying a huge fee and the organization could be making.
Any small or fine print can be an indicator that the provider is charging hidden fees.
When organizations tell you about their 0% fee or no commission pricing, while this may be the way they structure their pricing, you are still paying a markup on the mid-market rate.
Watch out for the cost of the exchange rate, as the fees more than likely could have been tacked on here. A simple Google search for mid-market exchange rates can tell you what rate you should be paying.
SellersFunding is completely transparent when it comes to the near mid-market rate we provide and the super low fees we charge to convert your currency around the globe.
Our rates are competitive against all major payment providers.
Why not see for yourself, when was the last time you’ve done a real-time comparison?
Keeping up to date on the mid-market rate when you are consistently converting currency is always a good idea.
Be diligent about checking bank or money transfer service providers rates and shop around. The provider that costs you the least and makes the process seamless is the best way to go.
With SellersFunding, you’re always given the best rate. We’ll be more than happy to compare apples to apples with any competitor you are currently using. What is there to lose?