Knowledge Base
Frequently Asked Questions (FAQ)
Clear answers regarding currency conversion mechanics, mid-market reference rates, hidden bank fees, and cross-border money transfers.
What is the mid-market exchange rate?
The mid-market rate is the midpoint between global wholesale buy and sell prices in the interbank currency market. It carries 0% retail bank spread and represents the true economic value of a currency.
Why does my bank quote a different rate than LiveExchange?
Banks and money transfer companies add a hidden foreign exchange spread (typically 2% to 5%) on top of the interbank rate to generate profit on every exchange. LiveExchange displays the pure mid-market benchmark.
How often are exchange rates updated on LiveExchange?
Our rates are continuously refreshed on an automated 30-minute revalidation schedule, sourcing consensus data from central banks and global interbank liquidity providers.
Is LiveExchange completely free to use?
Yes. LiveExchange is 100% free with no account registration, subscription fees, or hidden usage limits required.
What is the difference between spot rates and forward rates?
A spot rate is the exchange rate for immediate currency delivery (typically within two business days). A forward rate is a contractually locked rate for currency delivery at a designated future date, factoring in interest rate differentials.
What fees should I watch out for when sending money abroad?
Watch out for three separate fees: 1) The FX spread markup hidden inside the exchange rate, 2) Upfront sending or wire transfer fees, and 3) Intermediary receiving bank correspondent fees.
What is Dynamic Currency Conversion (DCC) and why should I decline it?
DCC occurs when an overseas ATM or credit card terminal asks if you want to pay in your home currency instead of the local currency. DCC almost always applies exorbitant conversion fees of 5% to 12%. Always choose to be charged in the local currency.
How do central bank interest rates affect exchange rates?
Higher interest rates in a country typically attract foreign investment capital seeking yield, increasing demand for that currency and strengthening its exchange rate, all other economic factors being equal.
Are conversion amounts entered on LiveExchange private?
Yes. Currency calculations are executed client-side in your web browser. LiveExchange does not record, sell, or store your conversion queries.
How can businesses hedge against foreign exchange volatility?
Businesses utilize forward contracts, FX options, and multi-currency treasury accounts to lock in rates and mitigate currency fluctuation risks on international invoices.
Have a question not covered here?
Our research and editorial desk is available to assist you.
Contact Editorial Team