Payset prespective
October 18, 2022

What Is the Mid-Market Rate?

Everything you need to know about the mid-market rate when exchanging currencies, including its history, purpose & how Payset can help.

What Is the Mid-Market Rate?

If you invest in or transact with foreign currencies, you’re probably looking for the best deal on any given currency. One key piece of information is the asset’s mid-market rate.

So, what is the mid-market rate?

The mid-market rate is a midpoint between the buy and sell prices of two currencies. Because buy and sell prices change over time, the mid-market rate changes along with them.

Keep reading for a full breakdown of the mid-market rate, including its common uses, how to find it, and how Payset can help.

What Is the Mid-Market Rate Used For?

The mid-market rate is used to determine an asset’s fair exchange rate.

In forex trading, banks typically use mid-market rates to negotiate trading prices. In fact, for this reason, mid-market rates are sometimes called the interbank rate.

Individual investors usually have no choice but to pay rates higher than the mid-market rate–but the mid-market rate nevertheless provides a target price you can aim toward.

You can also use currency exchange services like Payset to access mid-market rates.

How Do You Find the Mid-Market Rate?

You can calculate an asset’s mid-market rate by averaging its buy and sell prices (or its bid and ask prices).

The buy price is the highest amount that someone is willing to pay for an asset, while the sell price is the lowest amount that a seller is willing to accept for that asset. Add these numbers together, then divide the result by two to calculate the mid-market rate.

Additionally, you can use Google or a forex tracking site to look up an asset’s mid-market rate. There is often no need to calculate it yourself.

Mid-Market Rate Markups

Though you might know the mid-market rate of a currency, banks and other services will not always offer you that precise rate.

Instead, these services will often add a markup - or “spread” - and charge you a higher rate than an asset’s mid-market rate.

Services that offer no fees or zero commission are especially likely to add a markup to cover their own costs. It’s important to consider this.

Tips for Sending Money At the Mid-Market Rate

Though you probably will not be able to send money at the mid-market rate, you can try to find rates that are as close to that number as possible. Here’s how.

1. Convert Before You Spend

If you plan to spend foreign currency in multiple transactions, convert your money all at once, not every time that you spend it. By doing so, you won’t have to pay flat fees repeatedly.

2. Negotiate a Rate

If you are dealing with foreign currency through your usual service provider, you may be able to argue for a lower rate. If you are working with a large amount of money or are a frequent customer, you may have leverage that will allow you to negotiate a better rate.

3. Compare Exchange Rates

If you are looking for a new service for forex trading, compare your options. Look at different services to find the best rates and spreads. Sites like provide a way to compare market data.

4. Use a Reputable Service

Even if you can’t find an inexpensive option, you can at least be sure what you will pay. Use a reputable service that indicates how much you’ll pay before you convert your funds.

How Payset Can Help

If you’re planning to use foreign currency, Payset can help you to spend and trade your funds.

Support For Multiple Currencies

Our multi-currency IBAN accounts allow you to hold and exchange multiple currencies at once. By holding more than one currency, you can eliminate the need to consider mid-market rates every time you spend money.

Wide International Coverage

At Payset, you can exchange 38 currency pairs and hold up to 34 foreign currencies simultaneously. We also support transactions to 180 countries, offering nearly worldwide coverage.

Low Transaction Fees

In addition to avoiding high market rates, you can take advantage of our low transaction fees, which begin at 0.4%. Plus, you can always send money to other Payset accounts for free.

Click here to apply for an account.

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.

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