Ever converted money and received less than you expected? The gap is the spread. Understanding it helps you judge every exchange offer fairly.
The mid-market rate
The mid-market (or interbank) rate is the midpoint between the buy and sell price of a currency. It's the fairest reference number and the rate you see on financial sites and converters — but it's not usually the rate you get.
How banks and exchanges make money
Banks, cards and exchange offices add a margin on top of the mid-market rate. That spread is how they profit, so the amount you actually receive is a little lower than the reference rate — sometimes 1%, sometimes much more.
How to tell if an offer is fair
Compare the quoted rate to the mid-market rate. If the difference is small, it's a good deal; a wide gap means high fees baked into the rate. Always check before large transfers or travel money.
Use a neutral benchmark
A currency converter that shows the mid-market rate gives you a neutral benchmark to judge any provider's offer — updated daily across 130+ currencies.
Compare rates with the Currency Converter.