About this rate comparison chart

We base our price comparisons on data we’ve received from FXC Intelligence, a leading provider of international financial institution’s rates and fees. 

Some banks do not make their fees, margins, and exchange rates publicly available and that can mean you are paying more than you should for global money transfers. In fact, many banks will charge a variable fee or margin depending on the amount you are transferring or even what currency you are exchanging to or from. Additionally, banks on both sides of the transfer may charge a fee when you exchange your currency, and when the money is deposited into the beneficiary bank. 

How FXC Intelligence gets their bank fees and margin data

FXC Intelligence independently collects, analyzes and publishes FX Pricing Data.  This data tracks the costs of international payments across a range of values and currency corridors for both banks and payment companies.  

FXC Intelligence has multiple accounts, and multiple bank relationships in multiple geographies. To get current exchange rate information they initiate currency exchanges from accounts in various amounts to examine the fees and margins charged by each bank to determine the total costs to exchange a specific currency pair at a set amount.  

The comparison table shows how much it costs a customer to send money internationally, between the currency pair specified using each of the banks OFX have listed. The chart also demonstrates the amount the recipient would receive if the transfer was made using the named bank given the same amount transferred. 

Below, we define the terms used in the chart.  

Transfer fee

Many banks and money service providers apply an additional fee to exchange your currency. This can be instead of, or in addition to, a margin rate applied to the interbank rate that you may be charged to make your transfer. This transfer fee can be a nominal amount designed to cover the cost of the doing business or a percentage of the total transfer amount you are intending to transfer. Usually, the lower the amount of the transfer the higher the fee (as a percentage) that will be charged by a bank or other money service provider as there is less potential revenue for them from the bank margin percentage that they take from your transferred amount.  

The interbank exchange rate 

The interbank rate is the market rate at which international banks exchange their currency between other banks or external brokering platforms. The interbank rate is also referred to as the wholesale rate, mid-market rate and even the “real exchange rate.” The interbank rate fluctuates and changes constantly throughout the day so there is never a fixed value.  
The central bank of each country may publish the closing spot prices for a currency exchange pair at the close of business each day.  

Margin 

OFX as well as most banks have a set margin that they apply on top of the interbank rate that is offered to them to exchange the currency. This is how they make money from conducting currency exchange for businesses and consumers. Margins can vary widely from lower margins charged by OFX to higher margins charged by banks.  Margins also vary by the transfer amount and the availability of the currency pair you are intending to exchange. Some money service providers charge transfer fees instead of a margin but in many cases they work the same way.  

Receiving bank fees

Occasionally, third-party banks will deduct a fee from your transfer before paying your recipient. This fee can vary and OFX has no control over the fees charged by receiving banks and receives no portion of it.

 

If you’d like to talk about fees, margins, interbank rates or receiving bank fees give us a call. We’re here 24/7 to help you make informed decisions about your global money transfers.