What rate do I get from Trading 212?
You always get the live interbank rate with no additional spreads or markups.
If you’re converting during the weekend, you get the last available interbank rate from the weekday, as there is no live interbank rate during the weekend.
In case we don’t have an interbank rate, we’ll use Mastercard’s exchange rate without adding additional spreads or markup.
What is the interbank rate?
The interbank rate 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.
The sell price is the highest price a buyer is willing to pay for a currency, and the buy price is the lowest price at which a seller is willing to sell. The difference between these two prices is known as the spread.
💡Example: If EURUSD’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.
What is the mid-market rate?
The mid-market rate is the midpoint between the buy and sell prices of the currencies on the global currency markets.
💡Example: If EURUSD’s current buy and sell prices are 1.07700 / 1.07750, mid-market rate is 1.07725, the value that’s in the middle of 1.07700 / 1.07750. The same rate of 1.07725 will apply whether you’re buying or selling.
What is the difference between interbank rate and mid-market rate?
The difference between the interbank rate and the mid-market rate is the position within the buy and sell price range.
The interbank rate varies depending on if 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.