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Markets
The mid-market rate, and why your bank doesn’t show it
The rate you see on a search engine isn’t the rate most banks give you. Here’s where the gap comes from and how to see it on every quote.
Efua Mensah
·
Head of compliance
·
4 min read
The mid-market rate is the midpoint between what buyers are paying and sellers are asking for a currency on global markets. It’s the fairest reference point there is, and it’s the rate you see when you search for an exchange rate.
Where the gap comes from
Most banks don’t charge a separate conversion fee. Instead, they quote a rate a few percent worse than mid-market and keep the difference. On a $10,000 payment, a 3.5% margin is $350 you never see on a statement.
How Montra quotes
Every Montra quote starts from the mid-market rate and adds one fee, shown before you confirm. The amount your recipient gets is the amount on the screen.
Check it yourself
Next time you pay a supplier, compare the rate your bank used with the mid-market rate at that time. The difference, multiplied by the amount, is what the payment really cost.
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