The genuine mid-market rate is the only exchange rate you need to think about
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.
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.