Two numbers, one difference
The mid-market rate is the benchmark. The rate you are offered is the benchmark minus a margin, called the spread. That margin is revenue for the provider and cost for you, whether or not it is labelled as a fee.
Measuring the spread
Take the rate you were quoted, divide it by the mid-market rate, subtract 1 and multiply by 100. That percentage is your true conversion cost. Our percentage calculator does this in one step using the percentage difference mode.
For a 2,000 conversion, a 0.5% spread costs 10 while a 3.5% spread costs 70. Same transaction, seven times the cost.
"No fees" is not the same as cheap
- A wide spread with no fee can cost more than a small fee at the mid-market rate.
- Weekend and out-of-hours conversions often carry an extra margin for volatility.
- Card networks may add their own percentage on top of what your bank charges.
A simple comparison method
Ask each provider for the exact amount that will arrive, for the exact amount you plan to send, right now. Then compare those two numbers. The fee calculator combines percentage and flat fees so you can model each option before committing.
Common questions
How do I calculate the spread on a quote?
Divide the rate you were offered by the mid-market rate, subtract 1 and multiply by 100. A 3% gap on 2,000 units of currency costs about 60.
Is a zero-fee transfer really free?
Not necessarily. A provider can advertise no fees and still build a margin into the exchange rate. Compare the final amount received instead.
Do banks always give worse rates?
Not always, but bank spreads on retail conversions are typically wider than specialist providers'. Check each transaction rather than assuming.