This is the rate at which banks exchange currencies with each other. This rate is not a single rate but rather a range defined by the buy and sell prices.
💡 Example
If EUR/USD’s current buy and sell prices are 1.07700 / 1.07750, that is the interbank rate range.
- The interbank rate for buying USD with EUR is 1.07750.
- The interbank rate for selling EUR for USD is 1.07700.
How is the interbank rate relevant to my Trading 212 account?
- When converting funds from one currency to another via the Trading 212 app, you always get the live interbank rate with no additional spreads or markups.
- If you convert during the weekend, you get the last available interbank rate from the weekday. There is no live interbank rate during the weekend.
- If we don't have an interbank rate, we will use Mastercard’s exchange rate without adding additional spreads or markup.
What is the mid-market rate?
This is the midpoint between the buy and sell prices of the currencies on the global currency markets.
💡 Example
If EUR/USD’s current buy and sell prices are 1.07700 / 1.07750, the mid-market rate is 1.07725, the value in the middle of these two values. The same rate will apply whether you’re buying or selling.
What is the difference between interbank rate and mid-market rate?
Their position within the buy and sell price range.
- The interbank rate varies depending on whether you are buying or selling currency - it’s the specific rate you get at that moment.
- The mid-market rate is the average of the buy and sell rates and is the same whether you are buying or selling. It's like the halfway point between what buyers are willing to pay and what sellers are willing to accept.