You’re buying or selling foreign currency, for an overseas trip or international purchase, so you sensibly check the current exchange rates to see how much you can get for your pounds. However, when you reach your foreign currency provider, the rate is different compared to what you saw in the paper or on the internet. Why is this?
The reason: the rate you've seen is the 'interbank' rate.
The interbank rate is the rate at which banks and large financial institutions trade with each other. The interbank rate is regularly mentioned in the news but no financial institution sells foreign currency at this rate.
How does Caxton FX use the interbank rate?
At Caxton FX, we make our money on the difference between the counterparty rate and the rate we quote you. This is called a 'spread'. The spread that we give to our clients is much better than the banks, bureaux de change and other FX providers offer. What’s more, we do not charge any additional fees or commission, unlike many of our competitors.
The currency convertor used on our site generates a rate based on the interbank rate only. This rate is provided for indicative purposes only.
Currencies we trade
Get more for your money with Caxton FX
*Caxton FX does not charge a fee for international point of sale or international ATM transactions. However, some merchants or ATMs may levy their own charges.