How Can 1% Be Better Than 0% Commission?

Some currency providers promise “0% commission”, the reality is that they simply mark-up their exchange rate to include their fee instead, sometimes anything up to 13% over the real, mid-market rate on the day. This makes it difficult to work out just how much you’re being charged, but it’s certainly not free! 

We use the mid-market rate (or Xe.com rate) as a reference to set our rates.  This is the theoretical mid-point between buyers and sellers of a currency and is the rate used in global financial markets. More on that here. 

We then charge 1% for a 7-day swap, 1.3% for a 3-day swap and 2%* if you want an immediate swap.  

Major currency exchange bureaus on the high street typically charge around 4% - 5% over the mid-market exchange rate. Those based at airports are usually around 9%, and those at hotels can be as much as 13%.  

See below for a recent comparison: 

Scenario A:  Tom changed £1000 to euros on WeSwap. 
His rate was 1.36506, so he got 1365.06 euros. He pays WeSwap a 1% fee of 13.65 euros. He’s left with 1351.41 euros. 

Scenario B:  Tom exchanged £1000 to euros at Marks & Spencer. His quoted rate was 1.3322 so he got 1332.20 euros.  He paid 0% commission but got 19.21 euros less than on WeSwap. He actually paid Marks & Spencer 2.4%.   

All rates correct as of 30/03/2015 at 11:36am

So while 0% commission sounds like a pretty good deal, always be sure to check the real mid-market exchange rate and how much youll actually receive.  

 

* For all users who registered prior to 08/05/2017 immediate swap fee is 1.4% 

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