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.
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.
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.
Here’s the trick: many banks and transfer companies claim to have low or zero fees, but they silently inflate the exchange rate.
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.
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.
Unlike most banks, Wise (formerly TransferWise) uses the mid-market rate — always.
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.
| Provider | Amount Sent (GBP) | Exchange Rate Used | Amount Received (EUR) | Hidden Fees? |
|---|---|---|---|---|
| Traditional Bank | £1,000 | 1.13 | €1,130 | Yes (Rate Markup) |
| Wise | £1,000 | 1.17 (Mid-Market) | €1,163 (after fee) | No |
✅ Result: You save €33 — and that’s just one transfer!
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
Tip: You can check it live on Google, XE.com, or directly inside the Wise app.
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.
✅ Compare Transfer Rates
✅ Open a Multi-Currency Account
✅ Send Money Now with Wise
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?
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