Currency exchange rates represent the value of one currency relative to another. The mid-market rate — published daily by central banks like the ECB (European Central Bank) and the Fed — is the true rate between buy and sell prices. Banks and transfer services typically add a margin of 1-5% above this rate, meaning a €10,000 transfer can cost €100-€500 in hidden fees depending on the provider.
How Exchange Rates Work
Every currency pair has a buy price and a sell price. The mid-market rate is the midpoint — the fairest rate possible. Banks profit by offering you a worse rate (the "markup") and sometimes adding fixed fees on top. A 3% markup on a €10,000 transfer means you lose €300, even if the bank advertises "zero fees."
What are the hidden fees in international money transfers?
The advertised "zero fee" transfers often hide the real cost inside the exchange rate markup. When your bank says the transfer is free but gives you a rate 3% worse than mid-market, you're still paying — it's just invisible. Always compare the rate offered against the mid-market rate to see the true total cost. This calculator makes that comparison automatic.
What is the difference between the mid-market rate and bank rate?
The mid-market rate changes constantly during business hours. Banks typically update their customer rates once or twice daily, always with a margin in their favor. Online transfer services (Wise, Revolut, etc.) generally offer rates much closer to mid-market, with transparent fees shown upfront rather than hidden in the rate.
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