Treasury & Forex Advisory · Question

Why does the rate my bank quotes differ from the rate I see online?

Short answer

The number on a website or news app is a market reference rate, usually the midpoint between where banks trade with each other. Your bank quotes a customer rate, which adds a dealing margin and reflects timing, deal size and the cost of serving you. So the customer rate is nearly always a little worse than the screen.

In more detail

Several things explain the gap.

Mid versus two-way pricing: screens often show a single midpoint. A bank buys at one price and sells at a slightly different one, so you receive a lower price when you sell a currency and pay a higher price when you buy.
Dealing margin: banks charge for risk, handling and compliance. The margin depends on your size, your relationship, the currency and how competitive the quote is.
Timing: markets move constantly. A screen seen a few minutes earlier may already be stale by the time the dealer quotes.
Value date: a rate for a later settlement date is different from a rate for immediate settlement. Make sure you compare the same date.
Source differences: various websites draw on different data, so they may not agree even with each other.

Ask the dealer to confirm what the rate is based on and what margin is included. If you hold relationships with more than one dealer bank, request quotes from each at about the same moment and compare them like for like, in terms of amount, currency pair and value date.

Do not assume a larger deal always means a worse rate. Sometimes volume helps, and sometimes the bank charges more for the size. Check the rate and any separate charges together, since a good rate can be offset by additional fees.

Record the time

Note the time of each quote you receive. Without it, any later comparison with the market screen is not reliable.

Rates and charges are the bank's commercial terms, and an advisor cannot say what a particular quote should be.

Key points

Online figures are usually market midpoints, while bank customer rates include a dealing margin.
Banks quote different buying and selling prices, so direction of your deal matters.
Compare quotes for the same value date, amount and moment in time.
Ask the dealer what the quote is based on and what is included.
Check separate charges alongside the rate to see the real cost.

Who this applies to

Exporters and importers surprised by a gap between screen and bank rates.
Owners comparing quotes from more than one dealer bank.
Finance teams reconciling conversion proceeds to a market reference.

Last reviewed 3 October 2026

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