Conversions · 3 min read
How Currency Conversion Works
What an exchange rate is, why the rate you get differs from the mid-market rate, and how to avoid hidden fees.
Try the currency converter calculatorPut these numbers to workOpen →An exchange rate is simply the price of one currency in another. If 1 USD = 0.92 EUR, then euros are the “price” you pay to buy one dollar. Rates move constantly as markets trade.
The mid-market rate vs the rate you get
The mid-market (or interbank) rate is the “real” midpoint between buy and sell prices — the rate you see on Google. But banks, airport kiosks and many apps add a margin on top, so the rate you actually get is worse. That margin is often a bigger cost than any upfront “fee”.
To spot the true cost, compare the total you receive against the mid-market rate — not just the advertised fee.
Tips to keep more of your money
- •Prefer providers that use the mid-market rate with a small, transparent fee.
- •Avoid airport and hotel exchange counters — their margins are the highest.
- •When a card asks to charge you in your home currency abroad (DCC), decline and pay in the local currency.
Our converter uses indicative rates for quick estimates. For an exact amount to send or spend, check your provider's live rate at the moment of the transaction.
- 1Enter an amount and pick the two currencies.
- 2Read the converted amount and the effective rate.
- 3Use it as an estimate, then confirm with your provider's live rate.