When you need to change currency, the exchange rate you see on Google or the ECB page is never the one your bank gives you. There is a systematic gap between the mid-market (interbank) rate and the bank rate you get as a customer. Understanding that gap is the key to not losing money on conversions, transfers and payments abroad.
What is the mid-market exchange rate?
The mid-market rate — also called the interbank or market rate — is the price at which large financial institutions trade currency with each other on the wholesale market. It sits exactly halfway between the buy and sell price, which is why it is the fairest, most neutral reference for the whole industry.
The European Central Bank (ECB) publishes its official euro reference rate against major currencies every business day at around 16:00 CET. It is not a rate you can trade at directly as an individual, but a market snapshot used for contracts, company accounting and official statistics — and a perfect benchmark to measure your bank against.
What is the bank exchange rate?
The bank rate is what your bank applies when you exchange currency, send an international transfer or pay by card abroad. It always differs from the mid-market rate because it includes the bank's profit margin (the spread). This margin does not appear as a fee on your statement — it is baked directly into the rate you are given.
How to work out the real margin your bank charges
The formula is simple:
| Mid-market EUR/USD rate (ECB) | 1.0800 |
| Rate your bank gives you | 1.0480 |
| Difference | 0.0320 |
| Real margin (0.0320 ÷ 1.0800) | ≈ 2.96% |
In other words: divide the difference between the two rates by the mid-market rate. On a €5,000 conversion, a 2.96% margin is roughly €148 lost — with no fee shown anywhere on your statement.
Typical margins by type of provider
| Provider | Typical margin on the rate |
|---|---|
| Specialist (Wise, Revolut within limit) | 0% – 1% |
| Online / neobank | 0.5% – 1.5% |
| High-street bank | 2% – 5% |
| Bureau de change (city) | 4% – 7% |
| Airport exchange desk | 8% – 12% |
The buy rate and the sell rate
Providers quote two prices: a buy rate (what they pay you when you sell a currency) and a sell rate (what they charge you when you buy it). The mid-market rate is the midpoint between the two. The wider the gap between buy and sell, the bigger the provider's margin — and the more the exchange costs you.
Why the rate moves during the day
The mid-market rate changes continuously while markets are open — 24 hours a day on weekdays — driven by supply and demand, central-bank interest rates and economic news. At weekends, when markets close, the rate is effectively frozen, which is why some providers add a small markup on weekend conversions to cover the risk of Monday's move.
Pegged currencies: the euro and fixed rates
Not every rate floats. A few currencies are pegged to the euro at a fixed rate — for example the Bulgarian lev and the West and Central African CFA francs. For those pairs the rate barely changes. Most major currencies (USD, GBP, JPY and others) float freely, so their rate moves all the time.
Check the real mid-market rate between 30+ currencies and compare it with your bank.
See live rate →Frequently asked questions
What is the difference between the mid-market rate and the bank rate?
The mid-market rate is the real, neutral rate banks trade at. The bank rate is what you get, always worse because it hides a margin (the spread). Compare both in our currency converter.
What exchange rate does the ECB publish?
The ECB publishes daily euro reference rates against major currencies around 16:00 CET on business days — a fair benchmark, not a rate you can trade at directly.
How do I know if my bank is overcharging me?
Divide the gap between your bank's rate and the mid-market rate by the mid-market rate. Under 1% is good, 2%–3% is typical, above 3% is expensive.
Does the exchange rate change during the day?
Yes — it moves continuously while markets are open (24h on weekdays) and is frozen at weekends, which is why some providers add a weekend markup.
What is the spread?
The gap between the buy and sell price of a currency. The wider the spread, the bigger the provider's margin — and it is built into the rate, not shown as a fee.
Is there a fixed rate between the euro and any currency?
Yes — a few currencies are pegged to the euro (e.g. the Bulgarian lev and the CFA francs). Most majors float freely.