What is the Interbank Rate and How Can I Use CurrencyFair to Beat It?
One of our goals here at CurrencyFair is to give people access to the same great rates usually reserved for banks and FX brokers who deal with currency exchange day in, day out – and that’s how they profit handsomely from the hidden charges and margins.
First, let’s briefly explain what the interbank rate is, and how banks have managed to hide their sneaky fees for so long!
What is the Interbank Exchange Rate?
The interbank rate is essentially the rate at which banks exchange currencies with one another. Wikipedia refers to it as the
“top-level foreign exchange market where banks exchange different currencies. The banks can either deal with one another directly, or through electronic brokering platforms.”
Unless you’re a Wall Street big shot, or indeed a major bank, these rates are not available to you – the rate you’ll receive when doing a cross-currency transfer will never be as good as what’s on offer to the banks themselves.
Does that sound fair to you?
CurrencyFair Can Match and Beat the Interbank Exchange Rate
We’ve analysed the trades our customers have made over the previous 16 months, and compiled the statistics below which illustrate just how many of our customers manage to beat the interbank rate, saving themselves a huge chunk of cash, and also denying the banks their pound of flesh from your transfer!
If you’re not in a rush, our Currency Exchange allows you to set your own rate and wait for someone to accept. This unique peer-to-peer system means between 9 – 12% of CurrencyFair customers get a rate better than the banks themselves are trading on that given day!
Between 9 – 12% of CurrencyFair customers get a rate better than the banks give themselves.
As you can see above, using the Exchange doubles your chances of beating the interbank. For a guide on how to give yourself the best chance, check out our Exchange Explained article.
At time of writing (1.45pm September 2nd, 2015), the interbank rate for moving Pounds Sterling to Euro is 1.36014. However your bank would probably only give you a rate in the region of 1.33, as they take their 3% hidden fee. However with a CurrencyFair Auto-Transaction, you could get a lot closer to the interbank rate (check out the current live rates here).
And if that isn’t good enough, with an Exchange trade, you could get an even better rate, possibly beating the 1.36014 interbank rate!
Twitter – #beattheinterbank
We’ll be posting regular updates on which markets have money available on them at better than interbank. This means that all you’d have to do is “Create an Auto-Transaction” and you will have beaten the interbank! Follow the hashtag #beattheinterbank so you don’t miss out!
Now that’s something even a Wall Street big shot couldn’t get.
Pretty impressive stuff, if we do say so ourselves! Why not sign up today and see what you’re missing?