When you send money abroad through a traditional bank, you'll typically see a quoted exchange rate that looks reasonable. What you often don't see is the markup — the difference between the real mid-market rate (what you'd find on Google or Reuters) and what the bank actually gives you.
UK high-street banks typically add a markup of 2–4% on top of the mid-market rate, plus a fixed transaction fee of £5–25. On a £5,000 international transfer, that's £100–200 in hidden costs beyond the stated fees.
The mid-market rate (also called the interbank rate or spot rate) is the midpoint between buying and selling prices in the global currency market. It's the "real" exchange rate — the one you see on Google, XE.com, or our converter.
The retail rate is what banks and exchange services offer customers. It's always worse than the mid-market rate — that's how they make money. The gap is called the spread or markup.
The key is finding services that charge the smallest markup and most transparent fees.
Specialist transfer services consistently beat banks on exchange rates:
What to avoid:
Example: sending £10,000 to euros
Over multiple transfers — common for expats, remote workers, or landlords with overseas properties — these savings compound quickly.
The mid-market rate is the midpoint between buying and selling prices in the global currency market — the "real" rate before any markup. It's what you see on Google Finance, XE.com, or our currency converter. No bank or transfer service gives you this rate for free.
Yes — reputable services like Wise, Revolut, and OFX are regulated by the Financial Conduct Authority (FCA) in the UK and equivalent bodies internationally. They hold your money in segregated accounts and are required to process your transfer. Check FCA registration before using any service.
It depends on the currency pair and service. Wise typically completes transfers within 1–2 business days for common currencies, often faster. Bank transfers can take 3–5 business days. Some services offer instant transfers for an additional fee.
A specialist travel credit card (like Starling or Chase UK) or debit card charges no foreign transaction fee and uses the mid-market rate. Standard credit cards add 2–3% foreign transaction fees. Never choose to pay in sterling when a card terminal asks — always pay in local currency.