| 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:
- Spread — the gap between bid and ask.
- Commission/fee — a flat or percentage charge on top.
- 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.
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