Understanding Exchange Rates: Why Your GBP Amount Matters

Exchange rates are confusing by design. Here's a plain-English guide to understanding what you're actually paying when you send money abroad.

The Mid-Market Rate

The mid-market rate (also called the interbank rate) is the midpoint between the buy and sell price of two currencies. It's what banks charge each other — but not what they charge you.

The FX Margin

Every provider adds a margin on top of the mid-market rate. This is their profit. The problem? Most providers hide this margin, making it look like you're getting a "fee-free" transfer when the real cost is buried in the rate.

How to Compare Fairly

Always check: (1) the total fee, (2) the exchange rate offered vs the mid-market rate, and (3) the total amount your recipient will receive. The last number is all that matters.