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What is the mid-market rate? The real exchange rate, and how to spot the hidden markup

By SendPay Business · · 2 min read

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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.

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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.

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How it works

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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

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Spotted a mistake or something out of date?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.