Glossary entry

Margin

The margin is the difference between the mid-market rate and the rate a provider offers you, and it is a real cost even when no separate fee is shown. Because it is built into the exchange rate, it never appears as a line on your receipt, which is how a transfer advertised as free of fees can still cost money. You can estimate it by dividing the gap between the two rates by the mid-market rate. See also: spread, markup, transfer fee, and the guide Mid-Market Rate vs the Rate You Get.