The FX margin is the difference between the mid-market rate and the client rate. It is the amount the currency provider will generate in respect of a currency transaction.
FAQ > Pricing
What is the FX margin?
What is the mid-market rate?
This is also known as the market rate, inter-bank rate, bank rate.
It is the mid price of the buy and sell prices available in the currency markets.
Why is your pricing better compared to banks and brokers?
We are a technology business with ultimately less overheads. We do not have the legacy issues faced by banks and broker and our objectives are different. We want to make a profit as a business but more importantly want to offer a consistent, fair and low price to our clients.
My bank or broker is offering me a lower price?
From our experience, very low pricing offered by banks and brokers is temporary. Over time, some clients have found their pricing to have increased. In rare cases do they agree a fixed margin with a client for the longevity of the relationship.
How do you derive your FX margin?
The FX margin you receive is based upon the FX volume you will transact annually. The greater the volume the lower the margin.