Finding The Best Exchange Rates for Bank Transfers

By 
Matt Di Vincere (Chief Editor)
Last Edited Sep 23, 2022

Why Are People Shopping for Better-Than-Bank Rates?

If your aim is to find the best foreign exchange rates for bank transfers to an account abroad or domestically, then you already know how much finding a better fx rates than the bank’s is going to save you.

As a rough estimate using a bank-alternative provider can save customers from regions such as UK, USA, Australia, Asia or EU…

MORE THAN 50% of all associated bank transfer costs,

Together with several other benefits which we will briefly touch in this guide.

Best FX Rates for Bank Transfers Currently (Bank Alternatives)

We recommend look at our lists of best international money transfer companies and currency brokers by overall rating where we factored in the fees, exchange rates, and other factors to determine which is the best provider overall.

We believe this is the most recommended method, particularly if you have large requirements.

 

How exchange rates work

The official currency exchange rate is the real mid-market price in which banks trade currency in between themselves or the central bank. W

Currencies trade in the same fashion as other assets, so by mid-market we mean the price of the last deal that was made.

When you’re reading the morning news, or hearing some gloom and doom story over the television, when reports would mention “the rate” or the “official exchange rate” they mean exactly that.

The interbank or mid-market rate. The acceptable rate as reflected by the latest deal between banks. The official interbank is not the best forex rate achievable for private clients.

Markup: The Bank’s Buy and Sell Rate

Currency exchange board showing cross rates between various countries

However, that interbank exchange  rate is not the same as the foreign exchange rates offered to private or corporate clients.

Even a very large corporation, trading massive amounts of foreign exchange, using the best money transfer company or a bank’s corporate desk, isn’t going to get the exact interbank rate. Just like with any service there are costs to provide it – whether that be the investment in the currency trading infrastructure, regulatory and compliance requirements or simply staff costs we have to understand banks aren’t able to provide the service for nothing.

There will always be a SPREAD added into the mix, and our only gripe is that banks are often charging a far higher spread than is necessary to cover their costs and make a small profit.

The spread is usually shown in percentages.

A 0.5% spread means the amount of foreign currency you’ll receive in the deal will be 0.5% less of what you would have received if you were trading at official interbank exchange rates.

In almost all cases, both for private individuals and most businesses, the banks exchange rates are the worst on offer.

This is because a standard bank spread in the UK will be between 2-3% (for pairs like Pound v Euro or Pound v Dollar, or an even higher spread potentially for trades involving more exotic currencies).

View the current daily exchange rates

🔥 Customers Don’t Know What Exchange Rates Are 🔥

View this survey to learn most Australian customers don’t even know what bank exchange rates are and how markups work.

Buy/Sell currency spreads existing in cryptocurrencies too

Similarly to fiat currency exchanges, cryptocurrency brokers, exchanges, and sellers are also embedding a markup into their sales.

Some customers believe they can circumvent the costs of foreign exchange by using cryptocurrencies such as Bitcoin, , Ripple, ethereum or Cardano for international transfers, but the truth is that the costs of exchanging fiat money for crypto as even higher than the cost of exchanging domestic money into foreign currency.

While we have shown above that the best foreign exchange rate for businesses with WorldFirst will cost 0.15% to 0.5% per exchange, popular cryptocurrency exchanges would charge between 1.5% (using PayPal’s new Crypto option) and 5% (most local Crypto brokers), per exchange of GBPBTC/GBPETH or any other pairing.

An example using the live foreign exchange rate:

The current exchange rate for Pound in Australian Dollars is 1.9199 AUD, and you need to transfer abroad an amount of £100,000 to Australian Dollars. Your bank’s spread is 2% so you’ll end up with 188,150.6358 AUD after the exchange.

Definitely not the best fx rate for money transfers!

It means the spread fee you paid in practice (whether they’d like to call this a fee or not!) is £2,000 or 3,839.8089 AUD.

Approximated Best Exchange Rates Possible (Vs Banks)

Forex PairInterbank exchange rate*High Street Bank Exchange Rate (Estimated) **Recommended Provider Rate (Estimated) ***
Pound to Euro1.1652 EUR1.1303 EUR to 1.1419 EUR1.1536 EUR to 1.1594 EUR
Euro to Pound0.8582 GBP0.8324 GBP to 0.8410 GBP0.8496 GBP to 0.8539 GBP
Pound to Dollar1.2639 USD1.2260 USD to 1.2387 USD1.2513 USD to 1.2576 USD
Dollar to Pound0.7912 GBP0.7674 GBP to 0.7754 GBP0.7833 GBP to 0.7872 GBP
Pound to Australian Dollar1.9199 AUD1.8623 AUD to 1.8815 AUD1.9170 AUD to 1.9103 AUD
Australian Dollar to Pound0.5209 GBP0.5052 GBP to 0.5104 GBP0.5157 GBP to 0.5183 GBP
Pound to Swiss Franc1.1020 CHF1.0690 CHF to 1.0800 CHF1.0910 CHF to 1.0965 CHF
Pound to Hong Kong Dollar9.8779 HKD9.6804 HKD to 9.5816 HKD9.7791 HKD to 9.8285 HKD
Pound to UAE Dirham4.6417 AED4.5024 AED to 4.5488 AED4.5953 AED to 4.6185 AED
Pound to Singaporean Dollar1.6916 SGD1.6408 SGD to 1.6578 SGD1.6747 SGD to 1.6831 SGD
ANY CURRENCY2 – 3% Currency Spread1% to 0.5% Currency Spread

* Current rates provided to us by external provider, updated hourly.
** Represeting a 2%-3% bank margin, which is the average bank margin in the UK for internaional currency exchanges based on our indepedent research.
*** Representing a margin of 0.5% to 1% which is the average margin for most trades with brokerages.

Flexible Spreads with Brokerages

As mentioned in the above section the price you will be paying for your transfer in the form of foreign exchange spreads (the bank’s or the provider’s “offered exchange rate” is actually consisting of a spread integrated into it) will vary based on the circumstances of your trade.

First off there is a different spread altogether which varies between a spot trade (exchange money today) and a forward contract (pay a deposit on a transfer that will take place years into the future with a fixed exchange rate).

Secondly, some currencies are just more expensive than other to handle.

Major currencies as per definition such as the following pairings: EURUSD, USDJPY, GBPUSD, AUDUSD, USDCAD, USDCHF, NZDUSD are going to, on average, be less costly than exotic currencies.

Example of exotic currency pairings would be GBPAED, EURAED, GBPILS, GBPZAR, and these on average have slightly higher spreads because they are less “liquid” i.e. associated with more costs and risks for the bank or provider (this is how foreign exchnge companies make money, and they have to be careful not to take unnceseccary fx risks themselves).

Thirdly, brokers tend to offer better deals based on volumes.

The best foreign exchange rates offered to someone exchanging or transferring £10,000 will not be as to someone exchanging £100,000.

Moreover, one of the advantages of moving big volumes is that it’s possible to negotiate the exchange rate offered.

The best way to do that  first off get a quote from your bank but the way banks obfuscate the actual exchange rates offered could be tricky, so this stage can be skipped. The next stage, would be to get a clear quote from another broker (or multiple brokerages) so you’d have a idea where you’re standing.

You could also easily colate exchange rate quotes easily enough through online money transfer providers which are cheap and straightforward (but you should know that in some cases brokers won’t be able to match an fx rate that good, and it could still “make sense” to use a broker considering the added values of using a broker vs an online platform, in spite of not obtaining the absolute optimal exchange rate obtainable at the moment).

Rate Alerts – A Powerful Tool

One added value when using a currency broker is to have the ability to subscribe to the exchange rates.

For example, if you want to exchange Euro to USD, but that is not an urgent requirement and you are waiting until the EURUSD exchange rate will improve, you can set up a rate alert – a nifty little tool that you can either setup online or through your dedicated currency dealer, in which you ask to execute a certain trade when a certain rate level was reached.

As much as having lower spreads i.e. obtaining the best fx rate possible of all banks and providers, matter, trading currencies as the right timing could save up as much money for you.

Check Your Spreads on Each Trade

The fact a certain broker made a deal with you with a certain margin you were happy with does not mean the broker will continue to honour the same spreads on each trade you made (unless you have been directly communicated that, which would be very rare of a broker to commit considering their own costs and risks can change over time and impact their spreads.

That means it would be a good idea to check for each individual trade what was the margin that was applied and whether the exchange rates offered by that broker are still the best in the market.

As recommended in this guide, it is never a bad idea to contact another broker, compare the rates, and potentially go back to your broker to renegotiate the exchange rate markups applied to your trades.

Best Euro, USD, AUD and Sterling Rates: Same Path to Follow

It doesn’t matter if you try to find the best bank exchange rates for your Pound Sterling, Euro, Dollar or any other currency because the options we have covered on this guide will handle the majority of currencies and countries.

You will have to follow the same path to obtain the best gbpeur rate, the best gbpusd rate, the best eurusd rate, or any other currency pairing.

How to Make Currency Predictions?

One of the absolute best ways to obtain the best currency exchange rate for your tranfer or trade is to simply make the transaction at the optimal timing in which the relative currency exchagne rate between the currency you are exchanging and the currency you are receiving is the highest.

For example, if you traded your GBP to EUR on August 22, 2022, you would have had the best rate of that year (about 1.20). Simply by trading at another time, say a month later circa Sept 11, 2022, you would have only received 1.11 Euro for each Pound Sterling traded. In other words, within 1 month apart, you could have as much as 10% different on the exchange rates.

As mentioned above, rate alerts can be a really good idea to stay in tune with the market and particularly since you can set it to notify you only on specific currency pairings, the tool by itself does not give you forward judgement on the currency rate, it just tells you what’s the current rate.

It can be difficult and tricky to make accurate predictions regarding currency exchange rates, but it may be possible.

There are certain things to learn and here are some useful guides on learning how currencies behave and work.

How to Fix the Best Exchange Rate?

If you believe that you are currently enjoying the best USD rate, for example, against the Pound Sterling, then you could switch from Spot Contract (trading currencies right now) into a Forward Contract (fixing current rates for a period of between months and years moving forward).

Hedging tools like Forward can be a very useful tool in the array of the currency trader, and are very heavily used by international companeis and HNW.

It is for the most part, a useful tool to protect against volatility and uncertainty.

Best Exchange Rates for Travelers

Wise Multi-Currency Card

The aforementioned Wise offers more functionality for its customes than a simple online money transfer service with superb foreign exchange rates.

It also enables customers to collect payments from abroad and store funds in 8 different currencies on their Wise international account.

In practice, Wise’s multi-currency account is a form of a virtual bank account – and the kicker is, for travelers specifically, that customers in UK, EU, USA and Australia (as well as multiple other countries) are able to issue a multi-currency card attached to that virtual bank account.

That card has no FX exchange rate fees and debits one’s wise account automatically.

For example, if you are in the UK and traveling to Europe, you could get the best GBPEUR exchange rate by transferring money to your Wise account, exchange it to Euros, and then spend it in Euros via the Wise Multi-Currency Account and Debit Card.

Current, Official, Foreign Exchange Rates

Rates are updated on an hourly basis from an external provider. We do not guarantee accuracy. These are not rates for foreign currency bank transfers but rather the official rate used in trading between central banks. To view the best foreign exchange rate for bank transfers click here.

Common Currency Pairs – From GBP

GBP ExchangeCurrent Pound to Euro Rate:

  • 1 Pound is €1.1652 EUR
  • 10,000 Pound are €11,652.4432 EUR 

Current  Pound to US Dollars Rate:

  • 1 Pound is $1.2639 USD
  • 10,000 Pounds are $12,639.3488 USD 

Current  Pound to Australian Dollars Rate:

  • 1 Pound is A$1.9199 AUD
  • 10,000 Pounds are A$19,199.0445 AUD

Current  Pound to Japanese Yen Rate: 1 Pound is

  • ¥185.8313 JPY
  • 10,000 Pounds are ¥1,858,312.8997 JPY

Current  Pound to South African Rand Rate: 1 Pound is

  • R23.7764 ZAR
  • 10,000 Pounds are R237,763.8464 ZAR

Current  Pound to New Zealand Dollar Rate:

  • 1 Pound is $2.0539 NZD
  • 10,000 Pounds are $20,538.5627 NZD

Less Common Currencies Pairings – From GBP

  • Pound to Canadian Dollar Rate: 1 Pound is $1.7134 CAD.
  • Pound to Israeli New Shekel Rate: 1 Pound is ₪4.7069 ILS.
  • Pound to Hong Kong Dollar Rate: 1 Pound is $9.8779 HKD.
  • Pound to United Arab Emirates Dirham Rate: 1 Pound is 4.6417 AED.
  • Pound to Brazilian Real Rate: 1 Pound is R$6.2502 BRL.
  • Pound to Argentine Peso Rate: 1 Pound is $458.2143 ARS.
  • Pound to Mexican Peso Rate: 1 Pound is $22.0990 MXN.
  • Pound to Chinese Yuan Rate: 1 Pound is ¥8.9595 CNY.
  • Pound to Indian Rupee Rate: 1 Pound is R105.3888 INR.

Common Currency Pairs – From EUR

euro flag

Current Euro to Pound Rate:

  • 1 Euro is £0.8582 GBP
  • 10,000 Euro are £8,581.8912 GBP

Current Euro to US Dollars Rate:

  • 1 Euro is $1.0847 USD
  • 10,000 Euros are $10,846.9517 USD

Current Euro to Australian Dollars Rate: 1 Euro is

  • A$1.6476 AUD
  • 10,000 Euros are A$16,476.4111 AUD

Current Euro to Japanese Yen Rate:

  • 1 Euro is ¥159.4784 JPY
  • 10,000 Euros are ¥1,594,783.9179 JPY

Current Euro to South African Rand Rate:

  • 1 Euro is R20.4046 ZAR
  • 10,000 Euros are R204,046.3469 ZAR

Current Euro to New Zealand Dollar Rate:

  • 1 Euro is $1.7626 NZD
  • 10,000 Euros are $17,625.9711 NZD

Less Common Pairings – From Euro

  • Euro to Canadian Dollar Rate: 1 Euro is $1.4704 CAD.
  • Euro to Israeli New Shekel Rate: 1 Euro is ₪4.0394 ILS.
  • Euro to Hong Kong Dollar Rate: 1 Euro is $8.4771 HKD.
  • Euro to United Arab Emirates Dirham Rate: 1 Euro is 3.9834 AED.
  • Euro to Brazilian Real Rate: 1 Euro is R$5.3638 BRL.
  • Euro to Argentine Peso Rate: 1 Euro is $393.2345 ARS.
  • Euro to Mexican Peso Rate: 1 Euro is $18.9651 MXN.
  • Euro to Chinese Yuan Rate: 1 Euro is ¥7.6890 CNY.
  • Euro to Indian Rupee Rate: 1 Euro is R90.4435 INR.

Common Currency Pairs – From USD

Current US Dollar to Euro Rate:

  • 1 US Dollar is €0.9219 EUR
  • 10,000 US Dollar are €9,219.1800 EUR

Current US Dollar to Pound Rate:

  • 1 US Dollar is £0.7912 GBP
  • 10,000 US Dollars are £7,911.8000 GBP

Current US Dollar to Australian Dollars Rate:

  • 1 US Dollar is A$1.5190 AUD
  • 10,000 US Dollars are A$15,189.9000 AUD

Current US Dollar to Japanese Yen Rate:

  • 1 US Dollar is ¥147.0260 JPY
  • 10,000 US Dollars are ¥1,470,260.0000 JPY

Current US Dollar to South African Rand Rate:

  • 1 US Dollar is R18.8114 ZAR
  • 10,000 US Dollars are R188,114.0000 ZAR

Current US Dollar to New Zealand Dollar Rate:

  • 1 US Dollar is $1.6250 NZD
  • 10,000 US Dollars are $16,249.7000 NZD

Less Common Pairings – From USD

  • US Dollar to Canadian Dollar Rate: 1 US Dollar is €1.3556 CAD.
  • US Dollar to Israeli New Shekel Rate: 1 US Dollar is ₪3.7240 ILS.
  • US Dollar to Hong Kong Dollar Rate: 1 US Dollar is $7.8152 HKD.
  • US Dollar to United Arab Emirates Dirham Rate: 1 US Dollar is 3.6724 AED.
  • US Dollar to Brazilian Real Rate: 1 US Dollar is R$4.9450 BRL.
  • US Dollar to Argentine Peso Rate: 1 US Dollar is $362.5300 ARS.
  • US Dollar to Mexican Peso Rate: 1 US Dollar is $17.4843 MXN.
  • US Dollar to Chinese Yuan Rate: 1 US Dollar is ¥7.0886 CNY.
  • US Dollar to Indian Rupee Rate: 1 US Dollar is R83.3815 INR

Common Currency Pairs – From AUD

australia flag

Current Australian Dollar to Euro Rate:

  • 1 Australian Dollar is €0.6069 EUR
  • 10,000 Australian Dollar are €6,069.2829 EUR

Current Australian Dollar to Pound Rate:

  • 1 Australian Dollar is £0.5209 GBP
  • 10,000 Australian Dollars are £5,208.5926 GBP

Current Australian Dollar to US Dollar Rate:

  • 1 Australian Dollar is$0.6583 USD
  • 10,000 Australian Dollars are $6,583.3218 USD

Current Australian Dollar to Japanese Yen Rate:

  • 1 Australian Dollar is ¥96.7919 JPY
  • 10,000 Australian Dollars are ¥967,919.4728 JPY

Current Australian Dollar to South African Rand Rate:

  • 1 Australian Dollar is R12.3841 ZAR
  • 10,000 Australian Dollars are R123,841.4999 ZAR

Current Australian Dollar to New Zealand Dollar Rate:

  • 1 Australian Dollar is $1.0698 NZD
  • 10,000 Australian Dollars are $10,697.7004 NZD

Less Common Pairings – From AUD

  • Australian Dollar to Canadian Dollar Rate: 1 Australian Dollar is €0.8924 CAD.
  • Australian Dollar to Israeli New Shekel Rate: 1 Australian Dollar is ₪2.4516 ILS.
  • Australian Dollar to Hong Kong Dollar Rate: 1 Australian Dollar is $5.1450 HKD.
  • Australian Dollar to United Arab Emirates Dirham Rate: 1 Australian Dollar is 2.4177 AED.
  • Australian Dollar to Brazilian Real Rate: 1 Australian Dollar is R$3.2555 BRL.
  • Australian Dollar to Argentine Peso Rate: 1 Australian Dollar is $238.6652 ARS.
  • Australian Dollar to Mexican Peso Rate: 1 Australian Dollar is $11.5105 MXN.
  • Australian Dollar to Chinese Yuan Rate: 1 Australian Dollar is ¥4.6667 CNY.
  • Australian Dollar to Indian Rupee Rate: 1 Australian Dollar is R54.8927 INR

The Best Exchange Rates in History

Below, we will provide a list of the best exchange rates in history to give some perspective.

  • The best GBP to EUR exchange rate in history was 1.75 in May, 2000.
  • The best EUR to GBP exchange rate in history was 0.97 in December, 2008.
  • The best GBP to USD exchange rate in history was 2.64 in March, 1972.
  • The best USD to GBP exchange rate in history was 0.95 in February, 1985.
  • The best EUR to USD exchange rate in history was 1.59 in April, 2008.
  • The best USD to EUR exchange rate in history was 1.21 in October, 2000.
  • The best GBP to AUD exchange rate in history was 3.03 in September, 2001.
  • The best AUD to GBP exchange rate in history was 0.78 in October, 1976.
  • The best EUR to AUD exchange rate in history was 2.07 in December, 2008.
  • The best AUD to EUR exchange rate in history was 0.85 in August, 2012.
  • The best USD to AUD exchange rate in history was 2.07 in April, 2001.
  • The best AUD to USD exchange rate in history was 1.48 in March, 1974.
  • The best GBP to JPY exchange rate in history was 1014.1 in March, 1962.
  • The best USD to JPY exchange rate in history was 359.8 in July, 1970.
  • The best AUD to JPY exchange rate in history was 402.97 in July, 1970.

Best Exchange Rates in History Table

From CurrencyTo CurrencyRateDate
GBPEUR1.75May-00
EURGBP0.97Dec-08
GBPUSD2.64Mar-72
USDGBP0.95Feb-85
EURUSD1.59Apr-08
USDEUR1.21Oct-00
GBPAUD3.03Sep-01
AUDGBP0.78Oct-76
EURAUD2.07Dec-08
AUDEUR0.85Aug-12
USDAUD2.07Apr-01
AUDUSD1.48Mar-74
GBPJPY1014.1Mar-62
USDJPY359.8Jul-70
AUDJPY402.97Jul-70

Articles you might be interested in:

Best Exchange Rates for Bank Transfers

Uncover the nuances between official interbank and private/corporate exchange rates, learn about spreads, markups, and factors influencing rates. Understand the perks of currency brokers and online money transfer platforms, how to get the best rates, make currency predictions, use hedging tools, and understand the impact of global events on currency volatility.

Today’s Currency Exchange Rates

This page provides current interbank exchange rates for major currencies like GBP, USD, EUR, and others, highlighting that these rates are used for bank-to-bank transactions and are not typically offered to the public, with banks applying a spread on currency exchanges.

How The Economy Impacts Currency Exchange Rate

The relationship between the economy, currencies, and exchange rates. Learn how factors like interest rate differentials, current account, public debt, and trade account affect supply and demand dynamics, shaping currency appreciation or depreciation. Understand the significance of future expectations in driving market volatility and making informed decisions when exchanging money.

How Much Money is Transferred Internationally Each Year

The world of global money transfers, analyzing the substantial funds flowing across borders annually and their impact on industries and economies. Delve into key areas such as remittances to developing countries, international trade, B2B transfers among smaller enterprises, and overseas investments.

Oil Prices Impact on Currency Rates and Economy

Analyze the dynamic link between oil prices and currencies, highlighting how price changes impact economic health and currency rates, with insights on inflation effects and central banks' strategies to manage these fluctuations.

What is Currency Pegging?

Discover the nuances of exchange rate pegging, where countries stabilize their economy by fixing their currency to another, the strategy's advantages for business predictability and growth, alongside the risks of depleting foreign reserves and the 'debt barrier' challenge.

What Is The Libor Rate?

The LIBOR rate, a benchmark for global lending rates, influences commercial borrowing and derivative pricing. Calculated daily, it affects everything from personal loans to national economic policies, with its fluctuations impacting retail finance and public borrowing costs.

The Foreign Exchange Controversies

The article reveals the most controversial cases in the foreign exchange and money transfer sector, featuring companies like Dahabshiil with alleged links to terror funding, Western Union criticized for high fees and scams, and Crown Currency Exchange, which collapsed under fraud accusations.

International Money Transfer History And Timeline

Tracing the evolution of international money transfers, the article provides a comprehensive timeline from the establishment of industry giants like Western Union to the modern-day innovations and disruptions brought by companies such as Wise, with milestones including regulatory changes and significant mergers.

Studies you might be interested in:

How will the Australian dollar affect travel and consumer spending?

Investigate the impact of the Australian dollar's fluctuations on consumer behavior, particularly regarding travel and overseas spending. This study provides insights into how changes in the AUD's strength influence Australians' decisions on investing, traveling, and purchasing from abroad.

Will Australians increase their international payments in FY23?

As interest rates and living costs rise, this study examines Australian spending trends, specifically in the realm of international payments for FY23. It assesses whether Australians plan to increase, decrease, or maintain their spending abroad and explores the underlying reasons for their financial decisions.

Subscribe
Notify of

17 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments