What Is the Mid-Market Rate (and Why It Matters?)

Introduction – Ever Wondered Why You Get Less Money When Sending Abroad?

If you've ever sent money overseas or converted currencies at your bank, you might have noticed something strange — the amount received is often less than expected. That’s because most banks and money transfer services don’t use the mid-market rate — the real exchange rate.

So, what is the mid-market rate? Why is it important? And how can knowing about it save you money?

Let’s break it down in simple terms.

What Is the Mid-Market Rate?

The mid-market rate is the "true" exchange rate — the one you see on Google, XE, or financial news sites. It's the midpoint between the buy and sell price of any two currencies.

A Simple Explanation

In plain English:
It’s what banks use when trading with each other. But when they deal with you, they usually add a markup — and keep the difference as profit.

How Banks Use Markups to Charge Hidden Fees

Here’s the trick: many banks and transfer companies claim to have low or zero fees, but they silently inflate the exchange rate.

💡 Example

• Google shows the mid-market rate from GBP to EUR is 1 GBP = 1.17 EUR

• Your bank offers you 1 GBP = 1.13 EUR

• You're losing €40 per £1,000 — and they never told you!

Over time, those small percentage differences add up to hundreds in lost value.

Why the Mid-Market Rate Matters

Understanding and using the mid-market rate can:

• Save you money on every international transfer

• Provide transparency, so you know exactly what you’re paying

• Help you compare transfer services fairly

Whether you’re sending money from the UK to Spain, the US to Europe, or paying international tuition — knowing the real rate helps you make smarter decisions.

Wise: A Service That Uses the Mid-Market Rate

Unlike most banks, Wise (formerly TransferWise) uses the mid-market rate — always.

Key Benefits of Using Wise

Here’s what that means for you:

• No hidden markups

• A small, upfront fee that’s clearly shown before you pay

• A calculator tool that shows how much your recipient will get — in real time

🧮 Try it now:
Use our Wise Transfer Calculator to see how much more you’ll save today.

Real Transfer Comparison: Bank vs Wise

✅ Result: You save €33 — and that’s just one transfer!

When Should You Check the Mid-Market Rate?

Always check the mid-market rate when:

• Sending money abroad

• Receiving payments in another currency

• Converting savings between accounts

• Traveling or making large purchases internationally

Where to Find It

Tip: You can check it live on Google, XE.com, or directly inside the Wise app.

Final Thoughts – Knowledge Is Saving Power

If you’re an expat, digital nomad, or international student, the mid-market rate can be the key to saving hundreds per year. The best part? You don’t have to be a financial expert — you just need to choose services that put transparency first.

Wise is one of the few services that passes on the real rate — so you know what you're paying, every time.

Ready to Save More on Your Next Transfer?

✅ Compare Transfer Rates
✅ Open a Multi-Currency Account
✅ Send Money Now with Wise

About 247 Expat Insurance – Helping You Thrive Abroad

At 247 Expat Insurance, we understand the challenges of living and managing finances abroad. From international money transfers to expat health coverage, our mission is to make your life simpler, safer, and more affordable.

We carefully research and recommend tools that help expats like you save money and avoid unnecessary fees — wherever life takes you.

Looking for more tips and trusted services?
👉 Explore our expat guides and tools to make the most of your journey.

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