Understand spread, fees, and real exchange rates—and how to minimize costs when converting money.
Currency Conversion Fees Explained
When converting money, you’ll see two costs: the spread (the difference between buy/sell rates) and fees (flat or percentage).
1) Mid-market vs. retail rate
The “real” rate is the mid-market rate. Banks and cards often add a spread on top of it.
2) Common fee types
• Fixed fee (e.g., $5 per transfer)
• Percentage fee (e.g., 1–3%)
• ATM or card network fees abroad
3) Ways to pay less
• Use cards with no foreign transaction fees
• Compare providers (banks vs. fintechs)
• Avoid dynamic currency conversion at POS—pay in local currency
4) Expect rate movement
Rates change during the day. For large amounts, use a provider that locks a rate or lets you set alerts.
Try it: Use our Currency Converter to preview amounts at the mid-market rate, then compare with your provider.
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