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.
Don’t be misled, no matter what it is, the overall cost is the only thing that matters and you should care about.
| 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 add on markups | n.a. | 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 in 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. | |
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’s interbank rate? What’s mid-market rate?
The interbank rate is the exchange rate that major banks and financial institutions use when trading currencies directly with each other in the global market. This rate is typically available only to large institutions.
The mid-market rate is the average between the buy and sell rates of two currencies in the global market. The mid-market rate is also the real exchange rate you see on financial news websites or platforms like Reuters or Bloomberg. Because you can access it in real time from public sources, and it’s commonly used as a reference when people observe currency trends, so It’s considered as fair and transparent rate.. But it’s not actually transactional for most end customers and businesses.
In practice, the interbank rate and the mid-market rate are very similar.
3. Why our FX fee structure works better for your business?
We believe in a fundamentally better approach tailored to the needs of businesses like yours: delivering the genuine interbank rate with a single, competitive small margin embedded within your exchange rate.
1. True Cost Clarity (Avoiding Fee Confusion)
We gives 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.
