Is the mid-market rate the same as the spot rate?

Yes, the terms are used interchangeably. Both refer to the current midpoint price between bid and ask for a currency pair on the open market. Some providers also call it the real exchange rate or the interbank rate.

How much markup do providers typically add?

Markups vary from under 0.5% with specialist FX platforms to 3% or more with traditional banks. The margin is rarely shown as a percentage. Instead, you see it baked into the quoted rate, which is why comparing to mid-market is the clearest way to spot the cost.

Where can I check the current mid-market rate?

Google Finance, XE.com, Reuters, and OANDA all publish live mid-market rates for free. These are your reference points when reviewing what a payroll provider or bank is actually charging you.

Does Teamed pass through the mid-market rate?

Teamed's employment platform shows you the FX rate applied to each payroll run so you can see any markup clearly. If you want to understand exactly how FX is handled for your team, speak to the Teamed team directly.

Glossary

Mid-market exchange rate

The mid-market exchange rate is the midpoint between the buy and sell prices of two currencies on global markets, and the fairest benchmark for any currency conversion.

Reviewed by Teamed's in-house employment-law team·Last updated 24 June 2026

Also known as: interbank rate, spot rate, real exchange rate

What is Mid-market exchange rate?

The mid-market exchange rate is the midpoint between what the market is willing to pay for a currency (the bid) and what sellers are asking (the ask). It is calculated as (bid + ask) divided by two, and it reflects the true value of one currency against another at any given moment. Banks use it when trading with each other directly, which is why it is also called the interbank rate. You will not usually access it as a retail customer. Payment providers, banks, and global payroll platforms typically add a markup on top of it before charging you. That markup is where the real cost of currency conversion sits. When you are paying people in multiple countries, or recharging costs to clients in foreign currencies, the gap between the mid-market rate and the rate you actually get is a direct hit to your budget. Using the mid-market rate as your benchmark helps you measure that gap and compare providers fairly.

How is the mid-market rate calculated?

It is the average of two prices: the highest price a buyer will pay for a currency and the lowest price a seller will accept. Add those two figures together and divide by two. Reuters and Bloomberg publish live mid-market rates continuously, and they are the standard reference point.

Why can't you transact at the mid-market rate?

Only large financial institutions trading directly with each other get access to interbank rates. Everyone else pays a margin on top. That margin covers the provider's costs and profit. The size of the margin varies widely between providers, so it is worth comparing.

Why does it matter for global employment?

When you employ people in other countries, salaries and statutory costs are in local currency. If your payroll platform converts those amounts at a rate far above mid-market, you pay more than the underlying employment cost. Checking the markup against mid-market tells you the true FX cost.

Frequently asked questions

Is the mid-market rate the same as the spot rate?
Yes, the terms are used interchangeably. Both refer to the current midpoint price between bid and ask for a currency pair on the open market. Some providers also call it the real exchange rate or the interbank rate.
How much markup do providers typically add?
Markups vary from under 0.5% with specialist FX platforms to 3% or more with traditional banks. The margin is rarely shown as a percentage. Instead, you see it baked into the quoted rate, which is why comparing to mid-market is the clearest way to spot the cost.
Where can I check the current mid-market rate?
Google Finance, XE.com, Reuters, and OANDA all publish live mid-market rates for free. These are your reference points when reviewing what a payroll provider or bank is actually charging you.
Does Teamed pass through the mid-market rate?
Teamed's employment platform shows you the FX rate applied to each payroll run so you can see any markup clearly. If you want to understand exactly how FX is handled for your team, speak to the Teamed team directly.

Related terms

Note

This is general information, not legal advice. Statutory rules vary by country and change over time.

Glossary

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Last verified 2026-06-24