Glossary entry

Spread

The spread is the gap between the price at which a dealer will buy a currency and the price at which it will sell it. In the wholesale market the spread is very small, but in consumer transfers the word is often used loosely to mean the provider's margin on the rate. A wider spread means a weaker rate for you, whichever direction you are converting. Spreads can differ by provider, payment method, amount and time of day, including weekends. See also: margin, markup, mid-market rate, and the guide How to Compare Money Transfer Providers.