FXplained
Check the true cost of an FX quote
Most FX quotes are designed to look competitive whilst hiding the actual cost. Here's how to work out what you're really paying — in under a minute.
01
Start with the mid-market rate
This is the real exchange rate, the one banks trade at with each other, with no markup. You'll find it on Google, XE, or Reuters. It's your baseline — everything else is measured against it.
02
Compare it to your quoted rate
Whatever rate you've been offered, work out the percentage difference from the mid-market rate. That gap is the provider's margin, whether they call it a "fee" or not.
03
Add any stated fees on top
Transfer fees, "processing" charges, correspondent bank fees — these sit on top of the rate margin, not instead of it.
04
Multiply by your transfer size
A 1.5% margin sounds small. On a £250,000 supplier payment, it's £3,750 — gone before the money's even landed.
05
The one number that matters
Total cost = (rate margin % + fixed fees) × transfer amount. Ask any provider for this figure directly. If they can't give it to you in plain terms, that's telling you something.