What’s the mid-market rate?

The process of making a currency transfer involves selling one currency to buy another – for example selling pounds to buy euros – at a defined exchange rate: the value of one currency against the other.

The mid-market rate (sometimes called the interbank or middle rate) is the midpoint between the buy and sell prices of any two currencies at any time. And as the buy and sell rates are based on the constantly changing demand for and supply of a currency, the mid-market rate is constantly changing too.

Crucially (and why it’s so important), the mid-market rate is regarded as the fairest, most transparent exchange rate and is used across the world. This means it’s the only exchange rate you really need to think about.

Is the mid-market rate always the best one?

A mid-market rate is usually the most genuine rate you’ll get on any exchange – but as always, there are loopholes.

You can find the current mid-market rate for any two currencies with a quick Google search, which can be valuable as the mid-market rate that banks and brokers trade at is not always the rate they’ll offer you.

This is because they regularly add a ‘spread’ to the mid-market rate that effectively increases it to include their often exorbitant charges for facilitating the exchange – but without showing you the true rate. Look out for telltale signs like claims of zero commission, no fees or what they describe as their best day rates.

The Clear Currency effect:

Keep it Simple

The real exchange rate

The genuine mid-market rate is the only real exchange rate you need to think about.

Speak to us

Be careful of the hidden fees and charges banks and brokers often add on to the mid-market rate – or even better, avoid them completely and speak to us.