Exchange Rate Margin
The exchange rate margin is the difference between the standard, mid-market exchange rate and the exchange rate offered by your bank or currency exchange provider. This margin is how many providers and banks make money from currency transfers, and may be combined with other fees like commission or fixed charges. Note also that some currency exchange providers will offer different rates to buy or sell currency.
For example, say you’re converting from GBP to USD and the standard exchange rate is $1.30 for every £1. A currency provide may offer an exchange rate of $1.28 for every £1. This means the margin would be $0.02 or around 1.5%.
To maximize the amount the beneficiary receives, aim find a currency exchange provider with a low exchange rate margin. Our comparison tool tells you exactly how much each provider charges and the exchange rates they offer.
Money Transfer Glossary
When it comes to exchanging money, paying for your transfer, understanding exchange rates and more, it’s important to understand what all the details mean. But don't worry. We’ve got you covered with our complete Monito glossary and guide to the most frequent terms you’ll come across when you send or receive money internationally.