At mid-market
€915
1 USD = 0.915 EUR
Real cost comparison
| Provider | Spread | You receive |
|---|---|---|
| Mid-market (real rate) | 0% | €915 |
| Wise / Revolut | ~0.4% | €911 |
| Major bank | ~3% | €888 |
| Airport kiosk | ~8–12% | €833 |
Mid-market is the real rate. Bank rate is mid-market plus spread. Spread is how foreign-exchange businesses make money.
| Provider | Spread | You receive |
|---|---|---|
| Mid-market (real rate) | 0% | €915 |
| Wise / Revolut | ~0.4% | €911 |
| Major bank | ~3% | €888 |
| Airport kiosk | ~8–12% | €833 |
Banks rarely charge an explicit FX commission. They make their margin in the rate they quote — typically 2-4% off mid-market for retail wires, 0.3-0.7% for fintech (Wise, Revolut), and 8-12% for airport kiosks. On a $5,000 USD-to-EUR wire at 3% spread, you lose ~$150 invisibly. The number to compare is "euros received," not "fee charged" — most banks advertise no-fee or low-fee transfers while quietly burying a 3% spread that costs more than any explicit fee would.
Mid-market — interbank rate, what Google/XE/Wise showQuoted rate — what your provider gives youSpread — typically 0.4% (Wise) to 12% (airport)| Provider type | Typical spread | Best for |
|---|---|---|
| Wise / Revolut / OFX | 0.3–0.7% | Most retail transfers under $50k |
| No-foreign-fee credit card (Chase Sapphire, Cap One Venture) | ~0% spread, 0% FTF | Foreign purchases — always pay in local currency |
| Schwab / Fidelity debit (no FTF) | ~1% Visa/MC network | International ATM withdrawals |
| Standard credit card with FTF | 1–3% FTF + ~0% spread | Convenience only — not optimal |
| Major bank wire | 2–4% + $25-50 wire | Avoid for retail amounts |
| Western Union / MoneyGram | 5–10% all-in | Cash pickup in remote areas only |
| Airport / hotel kiosk | 8–12% | Last resort, small amounts only |
| Forward contract (OFX, Wise Business) | ~0.5% + small premium | Locking large future obligations |
"Would you like to pay in USD?" at a foreign terminal is Dynamic Currency Conversion (DCC) — a 4-8% spread layered on top of any card fee. Always say no. The card network (Visa/Mastercard) gives you near-mid-market; the merchant's DCC service does not. Same applies at foreign ATMs ("withdraw in USD?" — say no).
Most "no FX fee" providers bury the cost in the rate. Bank of America's "no commission" might quote 1.04 EUR/USD when mid-market is 1.07 — a 2.8% effective spread, $280 on a $10,000 transfer. Compute the euros received vs mid-market to see the real cost. Wise displays the spread explicitly.
If you have recurring receipts in EUR and recurring expenses in USD (or vice versa), holding a multi-currency account (Wise Multi-Currency, Revolut, HSBC Global Money) lets you avoid round-trip conversion. A US freelancer paid in EUR can hold euros, pay euro expenses, and convert only the net surplus to USD — vs converting every payment immediately and converting back for euro spending.
Sources: Wise public spread disclosures (Wise.com transparent pricing); Revolut FX rate methodology; OECD/BIS triennial central bank survey on FX market structure; CFPB consumer guidance on international wire fees; Visa/Mastercard published interchange and FX network rates; The Economist Big Mac Index for purchasing power parity context.
The midpoint between bid and ask in the global wholesale FX market — the rate banks use with each other and what Google, XE, and Wise display. No consumer transacts at exactly this rate; every retail provider adds a spread. Major pairs (USD/EUR, USD/GBP, USD/JPY) trade 24/5 across overlapping global sessions.
Difference between quoted rate and mid-market: 2-4% retail bank wires, 0.3-0.7% fintech (Wise/Revolut), 0.5-1.5% credit-card foreign purchases, 8-12% airport kiosks. Banks rarely charge explicit FX commission — the markup IS the fee. $5,000 wire at 3% = $150 invisible cost. Compute euros received, not "fee charged."
Almost always, yes. Wise: ~0.4-0.7% upfront fee, mid-market rate. $10k transfer ≈ $40-70 fees, ~$9,930 worth delivered. Same via major US bank: $25-50 wire + 2-4% spread = $250-450 total. Savings grow with bigger amounts. Revolut, OFX, Remitly similarly transparent. Exception: small amounts <$200 where flat fee dominates.
Depends on card. No-foreign-transaction-fee cards (Chase Sapphire, Cap One Venture, Schwab Debit, Wise card) charge 0% on foreign purchases at mid-market or near. Standard cards charge 1-3% FTF. Always pay in local currency, not USD — Dynamic Currency Conversion (DCC) at the terminal adds 4-8% spread. "Pay in dollars?" prompt is a fee trap.
Three layers: (1) your bank's foreign ATM fee ($3-5 — Schwab Investor Checking refunds globally); (2) ATM operator surcharge ($2-7); (3) network FX spread (1-3% Visa/MC). Withdraw larger amounts less frequently to amortize fixed fees. Avoid airport ATMs (often Travelex/Euronet at 8-15% spread). Best: Schwab Investor, Fidelity Cash Mgmt, Wise debit, Revolut Premium.
Locks an exchange rate today for a future date — typically 1, 3, 6, or 12 months. Useful for international property purchases, large foreign-currency invoices, expat employment, planned tuition. Wise Business and OFX offer retail forwards. Cost: small premium above spot (interest-rate differential). For under $50k with flexible timing, spot via Wise is usually cheaper.
Continuously. Drivers: interest rate differentials (carry trade), inflation differentials, trade balances, capital flows, central bank policy, geopolitical risk (safe-haven flows to USD/CHF/JPY), economic data. Major pairs trade trillions/day globally. For practical consumer purposes: the rate at the moment you confirm is the rate, regardless of why.
For small amounts, no — savings from "better timing" usually less than waiting cost. For $25k+: monitor 1-2 weeks, transfer in upper third of range. Don't wait months — currencies trend on macro factors retail can't predict. For $100k+ with flexibility, split into 2-3 tranches over weeks. For known future obligations, a forward eliminates the risk at a small premium.
Theoretical exchange rate at which a basket of goods costs the same in two currencies. The Economist's "Big Mac Index" is a famous measure. PPP rates can differ from market rates by 30-50% over multi-year periods. PPP matters for travel-affordability comparisons and international economic comparisons (real GDP), not for your next vacation transfer.
For most retail under $50k: Wise, Revolut, or OFX. Total ~0.4-0.7% all-in. Under $1k to specific corridors (US-Mexico, Philippines, India), Remitly/Xoom often beat on speed via mobile-wallet. Large recurring business ($10k+/month): brokers (Cambridge, OANDA, AFEX) for custom rates. Avoid: bank wires, Western Union (5-10%), MoneyGram, airport kiosks.