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For access to your online account please contact your personal account manager, alternatively email team@regencyfx.com.
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For access to your online account please contact your personal account manager, alternatively email team@regencyfx.com.
When you check an exchange rate online, what you’re actually seeing is called the interbank rate. But what does that really mean, who can access it and why can’t regular customers ever get that exact rate?
This guide breaks down everything you need to know about interbank rates, how they work and why using a specialist like Regency FX can get you much closer to that rate than your bank ever will.
The interbank rate (sometimes called the “mid-market rate”) is the rate at which banks trade currencies with each other.
It’s effectively the wholesale price of money, the midpoint between the buy and sell price of two currencies on the global foreign exchange (FX) market.
For example, If the GBP to EUR buy rate is 1.1530 and the sell rate is 1.1570, the interbank (mid-market) rate would be 1.1550.
This rate constantly changes as it’s driven by supply and demand, central bank activity and market sentiment.
Only major financial institutions such as:
These institutions trade billions every day, which allows them to transact at the true interbank rate with minimal markup.
Interbank rates act as the backbone of the global currency market, providing a reference point for all other exchange rates.
While you might see an “interbank rate” quoted that’s not what you’ll actually receive when exchanging currency.
On top of this there are typically:
High-street banks rarely offer the true interbank rate instead, they apply markups and fees that can add up to thousands on large transfers.
Find answers to the most common questions about interbank rates, bank fees and how Regency FX helps you get closer to the real market rate.
No, The interbank rate is reserved for institutions trading in vast volumes. However, specialist FX providers like Regency FX can get you much closer to that rate than a high street bank or traditional broker.
Banks generally have higher overheads and they rely on customers not comparing rates. Their FX operations are a secondary service and they make the most of their profits from other services.
Regency FX specialises solely in foreign exchange, which allows us to operate with lower margins and fewer overheads. We don’t have costly branches or large administrative teams instead, our main focus is on offering great personal service and the best exchange rates.
Savings depend on the size of your transfer, but for larger transactions (like buying property abroad, paying overseas tuition, or investing internationally), the difference can be substantial. For example, on a £250,000 transfer, you could save up to £5,000 compared to using a typical high street bank.
The interbank rate is the heartbeat of the global currency market but it’s not the rate most people ever see.
When you’re sending money abroad, buying property or paying for luxury goods, every fraction of a percent counts. That’s where Regency FX can help by offering rates close to interbank levels, low fees and expert service so your money goes further.
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