Woalet

Mid-Market Rate

The real exchange rate between two currencies as determined by the global market, without any markup or margin.

Full Explanation

The mid-market rate is the true, neutral exchange rate between two currencies at any given moment. It's the average of the bid and ask prices. It's called "mid-market" because it's in the middle of the market rates. When you see FX rates quoted by Google or OANDA, those are mid-market rates. However, banks and payment providers always add a margin on top of mid-market rates to profit from the transaction.

Related Terms

Bid-Ask Spread

The difference between the highest price a buyer will pay and the lowest price a seller will accept for a currency.

Exchange Rate

The price at which one currency can be exchanged for another currency.

Foreign Exchange (FX)

The global market where currencies are traded. Also the rate at which one currency can be exchanged for another.

Frequently Asked Questions

How much markup do providers add?

Banks typically add 1-2%. Digital providers like Woalet add 0.3-0.8% for most pairs.

Where can I see the mid-market rate?

Google, OANDA, XE, and most financial websites show mid-market rates.

Should I always compare to mid-market?

Yes, always check mid-market rate first, then see what markup a provider adds.

Is mid-market rate guaranteed?

Mid-market changes constantly. Check the rate right before confirming your transfer.