The mid-market rate is the midpoint between the buy and sell prices of two currencies or, in other words, between what the buyer is prepared to pay and what the seller is prepared to sell for. This rate is also known as the interbank rate.

For instance, if the buy rate of a currency pair is 2 and the sell rate is 1.5, the mid-market rate would be the average of both: 1.75.

A genuinely applied mid-market rate is universally regarded as the most transparent and accurate foreign currency exchange rate, reflecting real-time movements in the currency markets.

Banks and brokers habitually apply a “spread” to the mid-market rate, which is effectively a hidden charge that amends the quoted rate.

By cutting out intermediation, Fintech currency management platforms are able to offer their clients access to the mid-market rate on their FX trades and cross-border payments.