Why is the exchange rate different at the bank vs online?

Banks add a spread of 1-4% on top of the mid-market rate as profit. Online tools show the mid-market rate without markup.

What is the mid-market rate?

The mid-market rate is the midpoint between buy and sell rates on the global Forex market. It is the reference rate used in financial news.

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⚠️ Reference rates — updated periodically. For financial transactions, use a bank or broker's live rate.

Common rates vs USD

Currency	1 USD =	1 unit → USD

How Exchange Rates Work

An exchange rate tells you how much of one currency you can get for another. Rates are expressed as a ratio: 1 USD = 0.92 EUR means one US Dollar buys 0.92 Euros. Rates change every second on the foreign exchange market (Forex), which trades over $7 trillion per day.

Types of Exchange Rates

Spot rate: The current market rate for immediate exchange. This is what Forex traders use.
Bank retail rate: What your bank charges you. Usually 1–3% worse than the spot rate.
Credit card rate: Often close to the interbank rate, but with a foreign transaction fee of 1–3%.
Money transfer services: Wise, Revolut, and similar services offer rates close to the mid-market rate with low fees.

Tips for Currency Exchange

Compare rates before exchanging — rates vary widely between banks, airports, and exchange services.
Airport kiosks typically offer the worst rates — avoid exchanging large amounts there.
Credit cards with no foreign transaction fee (e.g., Chase Sapphire, Capital One Venture) often give you near-spot rates.
Services like Wise (formerly TransferWise) use the mid-market rate with transparent fees for international transfers.

Frequently Asked Questions

Banks add a "spread" (margin) on top of the interbank/mid-market rate — typically 1–4% — as their profit. Online tools show the mid-market rate, which is the midpoint between buy and sell prices and what you see on financial news sites.

The mid-market rate (also called interbank rate) is the midpoint between the buy and sell rates on the global Forex market. It's the "real" rate used as a reference, but individual consumers rarely get this rate — banks and brokers add their margin on top.

Forex rates change continuously — every second during market hours. Major currency pairs (EUR/USD, GBP/USD, USD/JPY) move constantly based on economic news, interest rate changes, and market sentiment. This tool uses periodically updated reference rates, not live rates.

By exchange rate, the Kuwaiti Dinar (KWD) is consistently the highest-valued currency — 1 KWD ≈ $3.25 USD. The Bahraini Dinar (BHD) and Omani Rial (OMR) are also high. Note: "strongest" by rate does not mean the most important — the USD dominates global trade and reserves.