On BER each bank and FX provider’s currency exchange rates are compared to the mid-market rate. This mid-market rate (sometimes also called the interbank rate or spot rate) is used in global financial markets and what you normally see reported on the news.
It is called the “mid-rate” because it is always half-way between latest BUY and SELL rates for the currency pair. The most important thing to know is that the mid-market rate is considered the fairest exchange rate available.
Generally they say when investing you should buy low and sell high and that is exactly what the banks are doing with you, they buy currency from you at low rates and sell currency back to you at high rates, so unfortunately you end up buying high and selling low!
That is why most banks and brokers hide this mid-rate from you by marking it up significantly – to their own benefit.
We compare the rates Vendors are offering to this mid-market rate showing you the percentage margin (profit) that is being charged by the Vendor in the right hand column.
Once the margins are expressed in percentages (rather than just a rate) the margin you are being charged by each Vendor is much clearer & easier to understand.
The rates used in BestExchangeRates are aggregated from a number of markets and updated regularly through the day. You can check against finance.yahoo.com, xe.com or oanda.com to confirm that the rate used on BestExchangeRates is close to the current market rate.
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