- What is the mid-market rate?
- The midpoint between the buy and sell price on the interbank market. This is the 'true' exchange rate without markup. Retail conversion rates are always worse than mid-market. Services like Wise charge a transparent fee on top of mid-market rather than hiding margin in the rate.
- Why does my bank offer a worse rate than XE.com?
- Banks add a margin (0.5-3% for major currencies, up to 7-10% for exotic currencies) to the mid-market rate as profit. The final rate is their 'retail' rate. Specialist services like Wise, Revolut, and Western Union are typically cheaper for large transfers.
- How often do exchange rates update?
- Interbank rates fluctuate continuously during market hours (24/5, Sunday 5pm EST to Friday 5pm EST). Major pairs (USD/EUR, USD/GBP) move fractions of a percent per hour in normal conditions; geopolitical events can cause moves of 1-5% in minutes.