What is the mid-market rate? The real exchange rate, and how to spot the hidden markup
By SendPay Business · · 2 min read
- 1Type in your own numbers
- 2The tool works it out
- 3See the answer clearly
The mid-market rate is the midpoint between the price buyers are paying and sellers are asking for a currency on the global markets. It's the rate you see on Google or XE, and it's the fairest benchmark for any exchange. Most banks and money providers give customers a rate a little worse than it, and keep the gap.
Why you rarely get it
Currency providers pay costs and need to earn. Instead of charging a separate fee, many build their earnings into the rate, so a transfer marked "no fee" can still cost more than one with a fee.
How to work out the markup
For example, if the mid-market rate is 1.16 and you're offered 1.13, the markup is about 2.6%.
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What it means if you run a currency business
The markup is where most currency exchange and transfer businesses earn. Being open about it, showing the mid-market rate next to yours, builds trust and is a strong way to stand out from providers who hide it.
How it works
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Questions people ask
How much is my own transfer really costing?
The calculator works out the hidden markup and the true cost of a transfer.
Money transfer cost calculator →Can I start a currency exchange business?
The guide covers the licences, how you earn and the steps.
Start a currency exchange business →Can my app offer currency exchange?
Yes. SendPay platforms, powered by licensed partners, include GBP, EUR and USD balances and currency exchange.
What is a multi-currency account? →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.