Why banks hide the real cost
Most banks advertise "no transfer fee" while quoting you a rate 1-4% worse than the mid-market rate. On a $10,000 transfer at a 2% spread, the bank silently pockets $200 — far more than any visible fee. This is by design: spread is hidden, fees are not.
What the spread actually means
The mid-market rate is the midpoint between the global interbank buy and sell prices — what currency truly trades for between large institutions. Anything below the mid-market rate (when you're buying foreign currency) is the provider's margin.
Typical FX spreads in 2026
- Wise: 0.4-0.7% all-in for major pairs
- Revolut (free tier): 0-0.5% on weekdays, 1% weekend markup
- Interactive Brokers: ~0.002% (about as close to interbank as retail gets)
- Major US bank wire: 2-4% spread + $25-45 wire fee
- Western Union retail: 4-8%
- Airport currency exchange: 8-15% — the worst rates legal to charge
How to get close to interbank
For frequent or large transfers: open a Wise or Revolut multi-currency account, or transfer through Interactive Brokers (convert inside the brokerage account, then withdraw the destination currency). The difference on a $100,000 transfer can easily exceed $2,000.