# Mid-market rate
> The mid-market rate is the real exchange rate, no markup. Banks add 2 to 4% on top, usually hidden in the rate rather than shown as a fee.
Canonical: https://fasset.com/business/glossary/mid-market-rate/

The mid-market rate is the midpoint between the buy and sell price of a currency pair, the same rate shown on Google, Reuters and XE. Banks quote you a worse rate and pocket the difference, typically 2 to 4% on top of the mid-market rate.

- **Where you see it:** Google, Reuters, XE and any currency converter that isn't trying to sell you a rate
- **Typical bank markup:** 2 to 4%, hidden in the rate rather than shown as a fee
- **At Fasset:** The mid-market rate plus a per-plan conversion fee, shown before you confirm
- **On a $10,000 invoice:** A 3% bank markup costs $300 before any transfer fee is even added

## How much does the mid-market rate actually save me?

On a $10,000 payment, a bank charging 3% in the rate alone takes $300 before any transfer fee lands on the receipt, and many banks do not show that number separately. Fasset converts at the mid-market rate and shows its conversion fee as a separate line, priced per plan on the pricing page. Run your own numbers in the transfer fee calculator, or read the full breakdown of how the mid-market rate works.

## Related terms

- **SWIFT:** The messaging network banks use to talk to each other. It does not move money, which is why wires take 1 to 3 days.
- **Safeguarding:** Why client funds are held separately at licensed institutions instead of on a company's own balance sheet, and how that differs from deposit insurance.
- **Stablecoin:** A digital token designed to track a currency. USDT is designed to track the US dollar and settles in about 20 seconds.

## Open an account

Fasset Business gives businesses local currency accounts and modern rails. The application runs entirely online.

- Open an account
- See the demo

Client funds are held separately from Fasset’s own.