What is a Currency Converter?
The currency converter converts between currencies using current exchange rates. It supports major currencies including USD, EUR, JPY, and GBP.
How it's calculated
Conversions are based on the mid-market rate (the rate you see in the news). Actual exchange transactions add or subtract a spread depending on the currency and provider.
Why does exchanging money always feel like a loss?
There are really three rates: the mid-market rate (the reference number), the rate you pay when buying foreign currency (higher than mid-market), and the rate you get when selling it back (lower than mid-market). This gap is called the spread. For major currencies it is often around ±1.5 to 2 percent, meaning if you convert $1,000 to another currency and immediately convert it back, you will lose 3 to 4 percent even if the rate has not moved at all.
Good to know
- A 90 percent cash-back on fees offer from your bank usually means 90 percent off the spread, not a 90 percent discount on the whole transaction.
- Spreads vary a lot by currency. Major currencies (USD, EUR, JPY) have tight spreads, while thinly-traded emerging-market currencies can have spreads of 5 to 10 percent.
- Card payments abroad add network fees on top of the exchange rate. Choosing to pay in the local currency rather than your home currency is usually cheaper.
- A rising exchange rate for your currency against another means your currency has gotten weaker, not stronger — a common point of confusion.
- Splitting a large currency exchange into several smaller transactions over time averages out the rate and reduces timing risk, compared to converting everything at once.
Frequently asked questions
Q. Does a rising exchange rate mean my currency is getting stronger?
No — if it takes more of your currency to buy one unit of another currency, your currency has weakened, not strengthened.
Q. When is the best time to exchange currency?
Timing the market is unreliable. For fixed future needs like travel, splitting the exchange into several transactions reduces risk.
Q. Why is airport currency exchange usually a bad deal?
Airport kiosks often apply little to no preferential rate. Pre-arranging an exchange through your bank's app usually gets a better rate.