3-6%
Typical bank margin
0.3-1%
Specialist margin
1-2 days
Specialist speed
3-6 days
Bank transfer time
Bank Exchange Rates vs FX Specialists
The comparison below shows why banks are typically not the most cost-effective method of sending money overseas. Bank exchange rates are usually subject to extremely high margins, which can erode a large chunk of the final amount delivered to your recipient.
Real Example: GBP 100,000 Transfer
Based on mystery shopping and independent research for transfers to major currencies:
| Provider Type | USD | EUR | AUD | Time |
|---|---|---|---|---|
| FX Specialist | 158,075 | 119,011 | 159,049 | 1-2 days |
| High Street Bank | 154,280 | 114,811 | 156,600 | 3-6 days |
Source: MyCurrencyTransfer.com mystery shop and independent research
Why Do Banks Charge So Much?
Banks have captive customers. Most people do not realise there are alternatives, so banks have little incentive to offer competitive rates.
Their foreign exchange desks are also not their primary business focus. They are set up to be profit centres, not to offer the best value.
Specialist FX providers, on the other hand, compete purely on price and service. Their entire business model is built around offering better exchange rates than banks.
Hidden Margins
Banks bury their profit in the exchange rate, making it hard to see the true cost of your transfer.
Slow Processing
Legacy banking systems mean international transfers take days, not hours.
Extra Fees
On top of poor rates, banks often charge flat fees of GBP 10-45 per transfer.
Check the Mid-Market Rate
Want to see the "real" exchange rate before comparing providers? Use our live currency converter to check the mid-market rate and benchmark it against what you are being offered.
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Save up to 5% on bank exchange rates and eliminate transfer fees. All providers are FCA-regulated.
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All providers listed below are authorised and regulated by the Financial Conduct Authority. Click through to see their current rates.
Frequently Asked Questions
Common questions about bank exchange rates and alternatives