Do you want to find today’s foreign exchange rates? Are you looking for “official” interbank exchange rates, or is it the bank foreign exchange rates today you’re after? Do you know what the differences are between the two? Put simply, you might just be interested in the best forex rates today that you can possibly achieve for bank-to-bank transfers.

This comprehensive guide will provide the current foreign exchange rates for a variety of currencies focusing on the Pound Sterling, the US dollar, the Euro and the Australian Dollar. We also show the current interbank exchange rates, and present the best fx rates offers currently on the market. Our research is not specific to find the best pound rates, the best Euro rates, or the best fx dollar rates, but rather covers all commonly-used currencies.

Best Exchange Rates for International Bank Transfers:

WorldFirst‘s new pricing initiative, starting from August 2019 and effective currently is as follows:

Current Best Forex Rates for Bank Transfers – WorldFirst*

The advantages of using WorldFirst’s service for bank transfers – 

*The interbank exchange rates on the above table and this entire website, as well as WorldFirst’s exchange rates are estimated. We rely on external software providers to get those rates, and hence, errors could occur. Before exchanging any funds be sure to check for the official exchange rate, as well as attaining get a current quote from the provider you intend to use (WorldFirst or otherwise).

** WorldFirst’s Best Exchange Rate is 0.15% spread reserved for businesses and individuals transferring more than £5m annually.

*** WorldFirst’s Min. Rate represents a 0.5% spread for individuals who need to transfer less than £500,000 annually. For businesses and individuals transferring between £500,000 and £5m, a spread of 0.25% will be applied.

**** We used 2 – 5% Currency Spread to calculate what would an average UK bank charge in term of FX costs. That is a very rough average based on up to date industry reports, but is not bank specific. Some banks are remarkably cheaper like UK’s challenger bank Starling and Virgin Bank who teamed up with WorldFirst.

More about WorldFirst

WorldFirst is a veteran money transfer company with a significant corporate FX department, owned by the massive payment company AliPay, which has  consistently ranked amongst our top 3 most recommended companies on Money Transfer Comparison since the site’s inception in 2014. The firm boasts 5 office locations across the globe, employing more than 600 people, and is the recipient of many prestigious industry awards such as the Sunday Times FastTrack Top 10 and the Queen’s Award for Enterprise in International Trade.

WorldFirst is considered by our staff as the company  providing the best foreign exchange rates for bank transfers of all sizes above its minimum requirement of £1,000.

WorldFirst accepts clients from regions such as the UK, EU, Canada, Australia, Singapore, Hong Kong, Japan, United Arab Emirates, New Zealand and many more but does not accept American clients. If you are seeking USA money transfer companies offering the best exchange rates check out OFX or Transferwise.

If you need to get the best rate for receiving large amounts from abroad then you should consider inquiring about Multi-Currency virtual bank accounts. WorldFirst also boasts such a virtual currency account for its business clients, and it’s one of the best EUR accounts and best USD accounts as per our comparison.

GUIDE: The “Official” Interbank Exchange Rate….

The official currency exchange rate is the real mid-market price in which banks trade currency in between themselves or the central bank. What do we mean by mid-rate? Currencies trade in the same fashion as other assets, so by mid-market we mean the price of the last deal that was made (a deal is made when the ASK price meets the BID price between two parties).

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. 

…as opposed to the bank’s Buy / Sell rates

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). You can read more about that aspect above on the best fx rate for international money transfers comparison.

Why wasn’t I aware of this before when enquiring about the best bank fx rates?

Most banks and foreign exchange bureaus operate in opaque ways, and try to divert you away from realising that the foreign exchange rate spread is the most meaningful aspect in a large foreign exchange transaction. They love to advertise a “0% commission” policy or toot their horn about their affordable £15 wire fees (if even) but a hefty spread makes all the difference in the world.

Have you ever seen a bank advertising their foreign exchange rates at all? In the UK, they don’t even publicly advertise the current rate they are offering their clients on their websites. Really, the only way you can enquire about the rate your bank will give you for an international transfer is to give them a call and more often than not speak to a generic member of the customer support team whom doesn’t have specialist knowledge of the foreign exchange industry. Put it to the test, call your bank to find the bank exchange rate today and compare this to the rates on offer with WorldFirst. In other regions, like Australia, they do, but that foreign exchange rate is still very much incomparable with what money transfer companies offer

Are you looking to calculate how much you overpaid on your past transfer? Use our proprietary tool below to get an estimation of that with our  money transfer fee calculator.

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Realistic expectations and some industry benchmarks for forex rates

We have already established the fact that achieving  the interbank currency exchange rate is unattainable, but what is? What is a fair price to pay for a foreign exchange transaction?

UK banks will charge 1.5%-4% on average in spread (bank exchange rates are worse than the interbank rate by that percentage). That average spread is true for USA banks, European banks, and generally speaking banks all across the world with the exception of ultra-competitive banking environments like Hong Kong where the spread is closer to 1%.

If you are a large corporation with significant trading volumes, you can get preferential business rates from the bank and  direct access to the trading desk. Those preferential exchange rates can be extremely good, but only a small subset of businesses are eligible (often with annual currency trading volumes of at least £10m).

Among all money transfer providers (the ones dealing exclusively with bank to bank transfers), the average spread will be under 1% for all currency pairs. Companies like Transferwise take 0.5-0.8% per transaction depending on the locations, Currencyfair’s average margin is reported to be 0.4%, and WorldFirst which is featured on our best exchange rate section charges spreads of between 0.15% and 0.5% depending on volumes. There are additional companies like Currencies Direct, OFX, or moneycorp whose currency exchange rate is at around the same ballparks but isn’t fixed (they quote customers on a client-by-client basis). If you wish to read more about this you can with our article on FX companies vs banks. There may be certain price points where currencies direct can offer a more preferential rate than WorldFirst – this would just involve negotiating with the broker over the telephone.

For example, as a purely illustrative purpose, if you were trading £480,000 to EUR then the rate with WorldFirst would be fixed at 0.5%, just below their £500,000 threshold for which you could achieve a rate of 0.25% – if you speak with Currencies Direct they might be willing to trade somewhere between the two spreads.

Getting the best foreign exchange rate for bank to bank transfers is feasible, just may require a bit of legwork, that’s all.

When it comes to travel money, there are different providers designated for that and upon a large £1,000 or more exchange, it is possible to obtain about 0.5% spread on the Pound vs Euro or the Pound vs Dollar (and slightly above that for less common currencies).

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Spot FX versus Forward Rate or Swap Rate

When we refer to “foreign exchange rate” we mean the current rate for a transaction happening now. There are other types of foreign exchange transaction which are either condition or suppose to take place in the future. That transaction happening now is called a spot FX transaction. If you want to read other types of transactions like a Forward Contract, visit our page dedicated to currency hedging.

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What should you be seeking besides the best Pound rate or the best Euro fx rate

The goal is to sidestep your bank and seek out to compare currency transfer rates  in order to discover the best exchange rate so you can pay less money on each transfer, that’s a given, but it’s not the only consideration to keep in mind. We believe safety, security, service, diversity of offering, and the global reach of each company should have a major impact on your decision too. If we put this plainly – FIRST you seek for a reliable company which adheres to the highest standards, and then among this subset of “approved” companies you compare the currency rates.

Below you can find out top rated companies by overall rating offering top FX rates:

• Min Transfer: £/€/$ 100
• Currencies Supported: 39
• Offices : UK, EU, USA, India, South Africa.
• Our Rating : 97.8%
• Most Global Offices and Reach
  
  No Fees from Anywhere
  
  96% Client Satisfaction
• Currencies Direct Review

Free Instant Quote

• Min Transfer: £/€ 1,000
• Currencies Supported: 121
• Offices : UK, EU, Australia, HK, Singapore. USA-based clients not accepted
• Our Rating : 95.4%
• Easiest Sign Up Process
  
  Great Online Sellers Offering
  
  Transparent Exchange Rates
• World First Review

Free Instant Quote

• Min Transfer: £/€ 100
• Currencies Supported: 40
• Offices : UK, EU, Singapore, and Australia.
• Our Rating : 93.4%
• Extremely Tailored Service
  
  MoneyFact's Best Provider Award
  
  Diverse Hedging Options
• TorFX Review

Free Instant Quote

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Should I sign up with multiple companies or just one to secure the best exchange rate?

Whether you are looking for the best Pound vs Euro rate, the best Pound to Euro FX exchange rate, or whichever currency pair – then sidestepping your bank and using a designated provider to beat the banks and get a top notch exchange rate is almost a sure way of doing it. In fact, our website – Money Transfer Comparison, is dedicated toward this worthwhile goal. We review currency brokerages and list their pros and cons,  ultimately providing our recommendation towards using them.

Signing up with multiple money transfer companies is easy to do, especially if you are in the UK, EU or Australia. It should only take minutes of your time to sign up with each provider. Until you sign up, some of the major companies won’t be able to quote you with a current exchange rate, so you won’t know what they are offering. Additionally and importantly, companies like Global Reach Group will be willing to negotiate the default fx rate if you are looking to transfer large amounts. You could contact them with competing offers and they may beat them by offering a better rate.

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What are “honeymoon rates”

Some companies will pull a strategy called ‘honeymoon rates’ for clients who need to use their services for multiple transfers. The first transaction will have the best bank exchange rate possible (and possibly the next few transfers to follow) and then the margin/spread will begin widening as the rates changed. The means that if in the first transfer the company offered you the “best rate” of 0.4% below the interbank exchange rate, the next transfer may be 0.5% and the 10th transfer may surpass the 2% margin, even. We’ve seen it happen and you should be on the lookout.

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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.

The above official interbank exchange rates today are for educational purposes only. The easiest way to double check the rates  would be google. Insert queries such as “gbp in euro” or “10000 gbp in euro” or “gbpeur rate” and you should be able to get what you are looking for. Alternatively, use the Bank of England’s foreign exchange rates which are available on their website.

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Forecasts and History for the Pound Sterling

Pound vs Euro

Future Prospects and Predictions for Pound vs Euro

Money Transfer Comparison’s authors and editors do not have a positive outlook for the UK after its decision to leave the EU. In essence, the UK is gaining nothing from exiting the EU right now (it may benefit from its ability to strike moe personalised trade deals in the long term), but its trade will certainly suffer in the immediate term. We still don’t know to what extent Brexit will impact the UK and indeed the EU.There does appear to be a route forward now – with the UK formally leaving the European Union on the 31st January and entering into a transition period for the remainder of 2020. 

We must also understand that this divorce bill (currently set to run until the 31st Dec 2020) doesn’t paint a clearer picture on the future of the UK and the EU’s trading relationship at all.  It simply means trade can continue, by and large, as it is now until the end of 2020. A no deal would still be possible at the end of 2020 and is actually now far more likely, particularly if there is no way of extending the transition period. Something that could be written into law depending on what form of Brexit Bill is passed in Parliament. 

The UK’s Monetary Policy committee held their nerve in Q4 and maintained interest rates at 0.75% but forecasts predict a 60% chance of a rate cut for the UK by the end of June 2020 as the UK remains on track to miss its 1.3% growth target for 2019 (GDP data to be released shortly). 

In short, finding the best Pound to Euro exchange rate may have already passed with the conservative win election gains already retreating.  Much will depend on how well trade talks progress between the UK and the EU. Markets are fearing the worst-case scenario where the trading relationship immediately switches to WTO terms at the end of the year. If this continues to appear more likely there is likely to be a continued decline in the valuation of the Pound vs Euro. Ursula von der Leyen, the new European Commission president, has warned it would be “impossible” to reach a comprehensive trade deal by the end of 2020.

Historical Overview: Sterling’s demise against the Euro

Sterling has been able to hold its position against the Euro for much of the period since 1999 with overvaluation in comparison with the German economy offset by the fact that the Euro had been persistently dragged lower by weakness in other key countries. Sterling, however, hit fresh multi-year lows in 2019 as  Brexit fears have undermined confidence in the UK outlook. Lows not seen for GBP this severe since the end of the 2009 financial crisis.

Source For This Graph

Pound to Euro Rates Analysis Summary

Sterling was able to recover after the 2008 financial crisis as Euro-zone fears dominated, but has now weakened to similar levels with expectations of permanent damage to the UK economy if there is a disorderly EU exit.

We believe there does at least appear a route forward now for a Brexit withdrawal agreement to be passed. But just because a route forward now looks possible, it simply reflects just how poor the state of affairs were before when a withdrawal agreement just did not look likely to be struck. And just because a route forward looks possible it by no means provides security it will happen. Much could still go wrong to scupper the withdrawal agreement at this stage.  Ultimately the UK’s withdrawal from the EU will damage both the UK and EU’s balance of trade in the coming years, but with the UK exporting a far greater percentage of its exports to the EU than the EU does to the UK it is only a logical assumption it will have a greater impact on the UK.

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Pound vs Dollar

Future Prospects and Predictions – GBP vs. USD

Money Transfer Comparison’s authors and editors still believe in a strong dollar under the growing U.S economy in spite of some market turbulence in 2019. Current US growth is below expectations but we are seeing a general slowdown in economies globally, in no part down to the growing US and China trade war.   China is also experiencing a general and gradual slowdown of its GDP output (but to a greater extent than the US) and its growth numbers are not meeting targets. Investors are wary of the wider global impact on China’s trading partners, including Japan and Australia. This together with the relative instability in Europe for both GBP and EUR, we believe the Dollar will remain the safe haven for investors.  Even despite the growing trade war between the US and China and the US economy growing at a slower rate than 2017 and 2018. 

With growing concerns from the impact of Brexit we believe Sterling could continue to weaken  in 2020 if a ‘no deal’ outcome continues to looks likely. In any case, leaving the EU will see a general slowdown in the UK economy over the next 5 to 10 years so the Pound is expected to maintain its comparably weaker position against  most major currencies and in particular, the US dollar. At a range of 1.3 to 1.35 of Pound vs Dollar, this might be the best Pound to Dollar exchange rate to be had.

Historical Overview: Sterling’s demise against the dollar

Optimism surrounding the UK economy triggered Sterling strength in the period ahead of the global financial crisis and GBP/USD moved to levels which were substantially overvalued. However, in the past 10 years, two major shocks have put GBPunder heavy selling pressure. Sterling slumped during 2008 as the financial crisis intensified and it was then tested further to 31-year lows after the 2016 Brexit vote.

 Source For This Graph

Future Prospects and Predictions – GBP vs. USD

Money Transfer Comparison’s authors and editors still believe in a strong dollar under the growing U.S economy in spite of some market turbulence in 2019. Current US growth is below expectations but we are seeing a general slowdown in economies globally, in no part down to the growing US and China trade war.   China is also experiencing a general and gradual slowdown of its GDP output (but to a greater extent than the US) and  its growth numbers are not meeting targets. Investors are wary of the wider global impact on China’s trading partners, including Japan and Australia. This together with the relative instability in Europe for both GBP and EUR, we believe the Dollar will remain the safe haven for investors.  Even despite the growing trade war between the US and China and the US economy growing at a slower rate that 2017 and 2018. 

With growing concerns from the impact of Brexit we believe Sterling could hit new lows in 2020 if there is a ‘no deal’ outcome. In any case, leaving the EU will see a general slowdown in the UK economy over the next 5 to 10 years so the Pound is expected to maintain its comparably weaker position against  most major currencies and in particular, the US dollar.

Pound to US Dollar Rates Analysis Summary

Historically, Sterling has had a pattern of mean reversion with the currency moving back towards fair value against the dollar after periods of under and over-valuation. Sterling is now under-valued once again, but this time around there is a genuine reason for concern with the coming brexit which to date has not been negotiated through. If the UK fails to find an adequate replacement for free trade with the EU, the British economy will suffer and as a result the Pound Sterling will continue trading at current levels or lower.

If  Brexit is negotiated to the satisfaction of the markets, or even better, is reversed by lawmakers, then we can expect the GBP/USD rate to climb back to at least 1.50. The question is whether this is even a possibility, and as time passes by, it most certainly looks less possible.

Our assumption is that the pound will continue to decline against a solid dollar supported by an American president whose main agenda is to cut taxes and strengthen the economy.  Just as we made a prediction last year that GBPUSD could hit 1.20 we may well see the same in the coming 12 months if the UK cannot find a way forward for a Brexit deal.

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Additional Read

The top two resources for you:

• Currency News and Weekly Forecast
• This Year’s Economic Calendar

Recommended resources for a better understanding of the foreign exchange rates:

• More on Worlds Riskiest Currencies for 2020.
• More on 2019’s riskiest currencies to hold.
• More about planned events in economy here.
• More about historical events that impacted currency here.
• More on how international money transfers work here.
• More on the underlying mechanism of international payments here.
• More on how economy impacts the currency exchange rate here.
• More on recent events via our Best Currency Blog Awards.
• More on the best companies on our homepage.
• More on the pros and cons of technical analysis.

Summary of we this guide taught us:

• The foreign exchange interbank rate is the official rate banks use when trading currencies with each other.

• Bank foreign exchange rates made available to clients is not the interbank rate. It contains a built-in spread.

• Banks’ fx rates for bank to bank transfers can be 2.5% worse than the interbank fx rate using high-street banks.

• The best bank exchange rates are still usually not as good as the specialist broker’s best FX rate for bank money transfers. The dedicated companies/brokerages can provide you with a better-than-bank foreign exchange rate.

• We believe WorldFirst has the best FX for international money transfers offer currently on the market.

• There are many considerations when choosing a provider that go beyond the exchange rate offered.

• The Pound to Euro and Pound to USD exchange rate is expected to rattle throughout 2020.

   

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