What is the Mid-Market Rate?
Mayfair FX helps understand the mid-market rate and why it is important
The mid-market rate has many names and is also known as:
- Market Rate
- Inter-bank rate
- Bank rate
- Currency rate
- Real exchange rate
- Spot rate
- and the list continues…
By definition, it is the midpoint between Buy & Sell market rates.
|GBP/USD Buy Rate||GBP/USD Sell Rate|
|Mid-market rate = 1.5160|
Why is the mid-market rate important?
If you know the mid-market rate and the rate you receive from your Foreign Exchange provider you can check if you are getting a good & fair deal.
For example if you are looking to Buy £100,000 Pounds worth of Euro’s from your traditional currency provider and you know the below:
Mid-market rate GBP/EUR: 1.4150
Currency Provider BUY rate: 1.3725
You can now calculate the currency provider has taken a margin of 3% which means it has cost you £3,000.
How can Mayfair FX help?
- Show you the mid-market rate on every transfer
- Gives you access to both Spot or Forward contracts
- Offers you a small FX margin ‘Spread’ compared to traditional FX providers
- No hidden fees or charges
- Online platform to check & book currency rates 24/7
- Hassle-free registration