How to measure conversion cost
Compare the quote with a mid-market reference.
1
Enter the amount
Use the amount being converted before fees.
2
Find the mid-market rate
Use a independent rate reference at the time of the quote.
3
Add the offered rate and fee
The difference is the true cost of the conversion.
What does this tool do?
Banks and brokers often profit through a spread rather than a visible fee. Comparing the offered rate with the mid-market rate exposes that cost.
The Formula
Cost = Amount × Mid-market rate − (Amount × Offered rate − Fixed fee)Frequently Asked Questions
What is a mid-market rate?
It is the midpoint between buy and sell prices on the wholesale market, and it is the fairest reference for a retail conversion.
Is a zero-fee transfer really free?
No. The fee can be built into a worse exchange rate, which is why the total cost comparison matters.