How to accurately compare quoted Direct FX rates with Transferwise, and other providers.

When comparing exchange rates between different providers you need to be careful and look at more than just the “quoted rate” a provider may give.

We made the decision to keep it simple and build all our fees and margins into the rate we quote you. So there are NO other fees from us when you deal. We will send off to your destination account the full amount of currency converted at the agreed rate.

Some other providers, in an effort to make their rates look better, will add their fees in after a deal is agreed at a specific rate. So while you may think you are dealing at a better rate, once you factor in their fee, often 0.5%, the net effect is you will end up with less in your destination account than had you dealt with us at a seemingly worse rate.

See the example below.

Direct FX – You sell NZD 100,000 and buy AUD at a rate of 0.9300. You will receive AUD 93,000 into your Australian account.

Transferwise – You sell NZD 100,000 at a rate of 0.9337, generating AUD 93,370. But then their 0.5% fee of AUD 470.00 is deducted, so you actually end up with AUD 92,900.00 in your Australian account. That’s AUD100.00 less than with us. The effective rate you dealt at was actually 0.9290.