FXplained
What is the mid-market rate?
The mid-market rate is the midpoint between the buy and sell price of a currency on the global market — the rate banks and large institutions trade at with each other, before anyone adds a margin for profit. It's sometimes called the "real" rate, the "interbank" rate, or the "true" rate. They all mean the same thing.
Why it matters to you
Every FX provider — banks, apps, specialist brokers — starts from this same number and then adds their own markup. The mid-market rate is the only fixed, neutral reference point you have. Without it, you're comparing quotes in the dark.
Where to check it
- Google ("GBP to EUR")
- XE.com
- Reuters or Bloomberg (for professional-grade data)
What it isn't
The rate you'll actually get. No retail customer transacts at the mid-market rate — providers need to make a margin somewhere. The point isn't to expect that rate; it's to use it as the ruler you measure every quote against.
A rough guide to typical markups
- High street banks: often 2–4% above mid-market
- Consumer FX apps: typically 0.5–1.5%
- Specialist FX brokers: often 0.2–1.5%
These vary hugely by provider, currency pair, and transfer size — which is exactly why checking the mid-market rate yourself, every time, is the only way to know if a quote is fair.
Next, learn how to check the true cost of an FX quote or what to look for when reading an FX quote.