Mid-Market Rate: A Practical Guide
Knowing the mid-market rate is one thing — using it effectively is another. This guide shows you how to calculate provider markups and find the best deal for your exchange.
How to Calculate the Markup
The formula is straightforward: take the difference between the mid-market rate and the provider's rate, divide by the mid-market rate, and multiply by 100. For example, if the mid-market GBP/EUR rate is 1.17 and a bureau offers you 1.12, the markup is: (1.17 - 1.12) ÷ 1.17 × 100 = 4.3%.
Typical Provider Markups
| Provider Type | Typical Markup |
|---|---|
| Online (Wise, Revolut) | 0.3% – 1.0% |
| Bank transfer | 1.5% – 3.0% |
| High street bureau | 2.5% – 5.0% |
| Airport / Hotel | 5.0% – 12.0% |
Watch Out For
- "No commission" claims — Often means the fee is hidden in a wider spread
- Dynamic Currency Conversion (DCC) — When abroad, always pay in local currency, not your home currency
- Weekend rates — Some providers apply wider margins on weekends when forex markets are closed
💡 Pro Tip: Check the mid-market rate on our live dashboard just before you exchange. Even a 30-minute delay can mean a different rate.