The mid-market rate, also known as the interbank rate or real exchange rate, is the fairest and most transparent exchange rate available in the global currency market. It represents the midpoint between the buy (bid) and sell (ask) prices of two currencies traded on the global financial market. In simple terms, it’s the rate you see on Google or financial news sites—the true value of one currency compared to another, without any added fees or markups.

At Remit Choice, we believe that understanding the mid-market rate is essential for anyone sending money abroad. Many money transfer apps and digital remittance services use or display the mid-market rate to ensure transparency and build trust with users. By doing this, customers can easily see how much their money is truly worth before any service fees are applied.

However, traditional banks often do not use the mid-market rate when processing international transfers. Instead, they apply their own exchange rate margins—a hidden markup added to the mid-market rate—allowing them to earn additional profit on every transfer. This means customers usually get less value for their money when sending funds through banks compared to digital remittance providers that use fairer, more transparent rates.

In short, the mid-market rate helps promote clarity, fairness, and better value for senders and receivers in the global remittance system. By educating users about this rate, Remit Choice empowers people to make informed financial decisions, save on hidden costs, and ensure more money reaches their loved ones abroad.