| RateX Pro

The two-price system

Walk into any exchange counter and you'll see two numbers for every pair: one for buying, one for selling. The gap between them is the spread, and it's the single biggest hidden cost in currency exchange.

For EUR/USD on the global interbank market, the spread might be 0.0001 — essentially nothing. At an airport kiosk, it might be 0.10 — a 10% swing. Same currency, same moment, vastly different cost.

Why spreads exist

Spreads are how market-makers get paid. They take on the risk of holding currency between buyers and sellers, and the spread compensates them for that risk. The more liquid a pair, the tighter the spread; the more exotic, the wider.

Spread vs. commission vs. exchange rate

These three things add up to your total cost:

  1. Spread — the gap between bid and ask.
  2. Commission/fee — a flat or percentage charge on top.
  3. Exchange rate — what you actually get versus the mid-market.

A "0% commission" provider can absolutely cost you more than one with a 1% commission, if their spread is wider. Always look at the final amount you'll receive, not the headline fee.

How to measure your spread

Simple formula: divide what you got by the mid-market amount.

\

← RateX Pro · Journal