Banking
FX spread
An FX spread is the difference between the mid-market exchange rate and the rate a provider actually gives, representing their margin on a currency conversion. A spread is charged in addition to, or instead of, an explicit transfer fee.
In plain terms: The hidden cut taken on a currency conversion.
Why it matters
The largest and least visible cost for founders moving money across borders. A transfer advertised as fee-free can be more expensive than one with a stated fee and a tighter spread. Compare the amount that actually arrives, not the headline fee.
Read the full guideGetting paid