Measure the hidden cost in an exchange rate spread.
Most currency conversion cost hides in the rate rather than the stated fee. A four per cent spread on two thousand pounds costs eighty pounds regardless of a headline claiming no commission. Comparing providers on stated fees alone is exactly what makes the spread profitable, so the effective total fee is the only meaningful comparison.
Currency Exchange Spread
Spread = (mid-market rate − offered rate) ÷ mid-market rate
Spread = (mid-market rate − offered rate) ÷ mid-market rate Most currency conversion cost hides in the rate rather than the stated fee. A four per cent spread on two thousand pounds costs eighty pounds regardless of a headline claiming no commission.
Comparing providers on stated fees alone is exactly what makes the spread profitable, so the effective total fee is the only meaningful comparison.
This calculator takes 4 inputs: Interbank or mid-market rate, Rate offered to you, Amount to convert, Stated fee. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.