Different platforms offer different currency conversion rates. However, only “mid-market” or “interbank” rates are the official ones. How to find companies offering these rates to avoid extra charges and save money? Keep reading to find out.
Different currency rates
Most of us check the current exchange rates by a quick Google search. However, in most places, you won’t find the value, which appears there…
Companies put a slight “markup” to earn their share on your conversion. But not all of them disclose it clearly.
Be careful with “free” transfers
Many money transfer platforms charge no fees on international payments, providing you exchange the money during the transfer. While there is no “official” fee, the company benefits from marked up rates. Let’s say 1 USD is worth 0.90 EUR. If you send 10USD, normally, your recipient would get 9 EUR. However, the company may exchange your money by their own values, let’s say 0.75. Now your recipient gets only 7.5 EUR. So your “free” transfer, in fact costs you 1.5 EUR...
That’s why it’s important to ALWAYS check exchange rates, before using any remittance platform.
What are mid-market rates?
So, which rates are the most optimal? There are these mid-market/interbank rates, which are used by banks and financial institutions to trade the currencies among each other. If you find a company which offers conversions closests to these values, you can be sure that you are not losing money.
It is the rate, which displays on Google, XE or Yahoo Finance and other official sources. On our site you can find a section devoted to finding the best exchange rates. Simply choose which currencies you want to convert and the algorithm will show you the list of all of the available companies and rates they use. You can simply pick up the top result to exchange your money by the current best rates. It is updated live, so it’s best to use the tool every time you are about to make a transaction, as the top companies can change.