Published 2026-10-06 · 5 min read · Currency
Why does a bank quote four or five rates for the same currency pair? A plain guide to mid-market, bid, ask, and cash versus electronic rates.
The mid-market rate is the midpoint between the bid and ask prices in the interbank market — effectively what a currency is genuinely worth at that moment. It carries no retail markup, which is why most public rate tables use it and why it is the right reference for following a trend. The converter on this site uses the mid-market rate, so its result will be slightly better than what a bank actually gives you.
A bank always quotes two sides. The bid is the price at which the bank buys foreign currency from you; the ask is the price at which it sells foreign currency to you. The gap between them is the bank's margin, known as the spread. Crucially, the direction is stated from the bank's perspective: when you go to change money, you are buying foreign currency, so the ask applies — and that is worse than the mid-market rate.
Electronic rates apply to money held in an account; cash rates apply to physical notes. Handling banknotes carries transport, storage, insurance and redemption costs, so the cash rate is normally less favourable. If you are buying travel money, estimate with the cash rate. If you are making a transfer or paying by card, the electronic rate is the more accurate guide.
Spending abroad on a card can involve two costs on top of the rate itself. First, the card network's settlement rate — Visa and Mastercard typically price close to mid-market but with a small margin. Second, the issuing bank's foreign transaction fee, often 1% to 1.5% of the amount. So the effective rate is the network rate multiplied by one plus the fee. Merchants sometimes offer dynamic currency conversion, billing you in your home currency; that conversion is usually worse, and selecting the local currency is generally the better choice.
Even at the same moment, different banks and platforms quote slightly different rates. The causes are mundane: distinct pricing times, different margin policies and varying inventory positions. This is normal and does not mean anyone has published an error. For large transfers, comparing a few providers is worthwhile; for small everyday amounts, the difference rarely matters.
The converter here gives a quick estimate based on the mid-market rate. It suits budgeting before a trip, working out roughly what a foreign bill costs, or following the general direction of a rate. It is not a basis for accounting, settlement or tax — for those, use the exact rate your bank gives you at the time of the transaction.
Brent crude and gold prices are sourced from public market data providers (OilPriceAPI, MetalpriceAPI). China retail fuel prices come from ShowAPI. Rates are collected on a daily schedule and cached on a global edge network.
The prices and rates shown here are reference figures for general information only. They are not exchange settlement prices and must not be used for trading, settlement, accounting or any investment decision. Figures may be delayed and may differ from those quoted by your bank, broker or local retailer.