1. There are various FX fee structures for currency exchange in the market, what are the differences, and which one benefits me most?
Typically there are 3 types of FX fee structures as showed below among providers.
Focus on the total cost — it’s the core factor for your decision-making.
| FX rate | FX fee | Pros | Cons | |
|---|---|---|---|---|
| Type 1 | Mid-market/interbank rates* | Y | No markups in FX rates, the exchange rates look cheap | Have to pay extra FX fees |
| Type 2 | Mid-market/interbank rates with a markup added | No seperate fee | You don’t have to pay any other FX related fees, all FX costs are already included in the markups. | The exchange rates may be misunderstood to be expensive and lack transparency, and calculating the markups requires extra effort. |
| Type 3 | Pay a membership/plan fee to exchange at interbank rates within a certain limit | Within the limit, you can freely exchange in interbank rates. | Exceeding or not fully utilizing your limit will actually increase your overall FX costs. | |
How WorldFirst does it
WorldFirst’s FX structure is based on the interbank rate — we start here because it provides a fair and transparent base for your transaction. To provide our services, including technology, security, expert support, and to ensure compliance, we apply a single, competitive markup to this interbank rate.
This creates your final guaranteed exchange rate – quoted upfront, with no hidden fees added later. What you see is what you pay. This ensures you get competitive rates and complete clarity about the costs involved.
2. What are the interbank rate and mid-market rate?
These two terms come up often when people look into exchange rates, and they’re very similar in practice.
The interbank rate is the rate that major banks and financial institutions use when they trade currencies directly with one another. It reflects real supply and demand in the global currency market, but it’s typically only available to large institutions, not to everyday customers or businesses.
The mid-market rate is the midpoint between the buying price and the selling price of a currency pair at any given moment. It’s also the rate displayed on financial news sites and platforms like Reuters or Bloomberg. Because it’s publicly available in real time and isn’t skewed toward either buyers or sellers, it’s regarded as a fair and transparent reference rate for comparing currencies.
That said, neither rate is what most people or businesses actually pay when they make a transaction. They serve as a way to gauge what a fair exchange rate looks like before any fees or markups are applied.
3. Why our FX fee structure works better for your business?
We believe in a simple approach tailored to the needs of businesses like yours: delivering the actual interbank rate with a single, competitive small margin embedded within your exchange rate.
1. True Cost Clarity (Avoiding Fee Confusion)
We give you one clear, all-inclusive rate upfront. There are no surprise fees to calculate later – your final rate is your total cost. You can easily compare and understand the total amount you pay without having to calculate separate fees.
2. Competitive Rates
By sourcing rates directly from the interbank market, we ensure that our base rate is closely aligned with global market movements. The embedded markup is clearly integrated, resulting in a competitive and fair exchange rate.
3. Streamlined Experience
You don’t need to navigate multiple fee structures or worry about unexpected charges. Our all-in-one pricing helps you focus on your business, not on deciphering FX fees.
