The mid-market Exchange rate is the rate between the “buying” and “selling” rate of a specific currency. It is the real rate in any market.

In the currency exchange market, there is a “sell” rate and a “buy” rate. Sell rate is the rate that a specific vendor/bank agrees to sell a specific currency on. Buy rate is the rate that a currency exchange dealer/bank agrees to buy a currency on.

The Mid-Market Exchange rate is simply the rate between the buying and the selling rate.

Mid-Market Exchange Rate

How do I find Mid-Market Rate?

The mid-market rate is the rate between buying and selling rates, so it keeps changing. But you can easily figure out the Mid-Market rate your self by calculating the spread between the buying rate and selling rate.

Let’s take the example in the above-mentioned image from Payoneer‘s blog.

  • The sell rate for £1 was €1.10.
  • The buy rate, on the other hand, was €1.30.
  • The spread is between €1.10 and €1.30 – a spread of €0.20.
  • so the mid-market rate for GBP to EUR is £1 to €1.20

Pretty simple! right?

Does everyone use Mid-Market Exchange Rate?

Nope. Not everyone. Think of how currency conversion agencies/vendors make their money. The vendors take the original Mid-Market rate at that time and add extra fees and charges, without telling you.

If you want to get a certain amount of foreign currency, you’ll have to pay some extra money than you should, according to the Mid-Market rate. The same goes for buying. If you want to exchange foreign currency to your local currency, you’ll receive less money than the actual calculated amount according to the Mid-Market rate.

No one should ever have to pay extra to exchange money. Always make sure to check the actual mid-market rate before going to an exchange agent or using an online exchange service.

You can also use XE’s awesome currency converter to see the current mid-market exchange rate.

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