The mid-market exchange rate, also known as the "interbank exchange rate", is the exchange rate at which banks trade currencies between one another.
Every currency pair in the world has a unique, ever-evolving mid-market exchange rate driven by global and regional macroeconomic forces. For example, a mid-market exchange rate exists between the US dollar and the Euro, which tends to fluctuate according to imports, exports, trade agreements, economic conditions, and many other factors.
The mid-market exchange rate is calculated as the midpoint between the buying and the selling prices of the two currencies and agreed upon by global banks.
How To Find The Mid-Market Rate
The mid-market exchange rate is essentially what people are talking about when referring to "the exchange rate" between any two given currencies.
Simply put, the mid-market exchange rate is the exchange rate you'll find when you search on Google, for example, or when you view the rates using currency providers such as XE.
Can I Send Money At The Mid-Market Exchange Rate?
Generally, it's not possible to send money at the mid-market exchange rate. This is because banks and currency exchange providers set their own, slightly different exchange rates for customers known as exchange rate margins to profit from international money transfers.
These exchange rate margins can vary significantly depending on the provider you choose to transfer your money and can fall anywhere between 0.01% and 10% or more your transfer amount.
If you're interested in saving money on international money transfers, a general rule of thumb would be to transfer money as close to the mid-market exchange rate as possible. Because most currency providers and banks make money from the exchange rate margin, the closer you are to this exchange rate, the more money your beneficiary will end up receiving.
To get the job done, run a search on Monito's comparison engine!
This way, you'll be comparing all the money transfer providers to your destination and discovering the best ones to suit your needs. Our extensive data draws on real-time fees and exchange rates from dozens of providers across the globe, even offering you a comparison of each provider's exchange rate to the mid-market exchange rate, as well as an overview of how much you can expect to pay in hidden fees:
If you'd like to learn more about saving money while sending abroad, then we'd recommend you check out our guides on how to compare currency exchange rates, transfer large amounts of currency and minimize your money transfer costs.
The Monito Glossary
When it comes to moving money, don't let yourself be bogged down by all the jargon. Explore The Monito Glossary to get up to speed with everything you need to know about money transfers.
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