Currency Converter — Convert Money Between Currencies

How to Convert Currencies

1. Open the currency converter.
2. Enter the amount you want to convert.
3. Select the source currency (the currency you have).
4. Select the target currency (the currency you want).
5. The converted amount updates instantly using the latest exchange rate.
6. Click the swap button to reverse the conversion direction.

Major World Currencies Reference

What Drives Exchange Rates

Mid-Market Rate vs. What You Actually Get

The mid-market rate (also called the interbank rate or the rate shown on Google) is the midpoint between the buy and sell prices in the wholesale foreign exchange market. It is the "true" exchange rate — but it is not what individuals and businesses typically get.

Providers make money on currency exchange through the spread — the difference between the rate they buy currency at and the rate they sell it to you:

• Airport exchange bureaux: Often the worst rates — spreads of 5–15%. Convenience premium is very high.
• High street banks (FX desks): Typically 3–5% spread. Better than airport but still poor.
• Your debit card abroad: Bank adds 2–3% conversion fee; some cards add a fixed transaction fee on top. Check your card terms before travelling.
• Specialist FX services (Wise, Revolut, OFX): Closest to mid-market rate — typically 0.5–1.5% spread. Best option for regular transfers.
• Cryptocurrency exchange for FX: Low fees but high volatility risk if holding crypto between buy and sell.

The currency converter shows the mid-market rate — to estimate what you will actually receive, subtract the provider's spread and any fixed fees.

Currency Converter for Travel

Before travelling abroad:

• Check if your bank card has foreign transaction fees. Many do (typically 2–3%). Fee-free travel cards (Chase UK, Starling, Monzo, Halifax Clarity) save significantly for frequent travellers.
• Avoid dynamic currency conversion (DCC). When paying abroad by card, you may be offered to pay in your home currency instead of the local currency. Always choose to pay in the local currency — DCC rates are typically 3–7% worse than your card's rate.
• Withdraw local currency from ATMs, not exchange bureaux. Your bank's ATM rate is typically better than bureau rates. Use one larger withdrawal to minimise fixed fees.
• Get cash at home before travelling if you need large amounts — UK banks typically offer better rates than airport bureaux, especially for common currencies.

Sending Money Internationally

International money transfers involve both exchange rates and transfer fees. For large transfers, even 0.5% rate difference is significant:

• Wise (formerly TransferWise): Mid-market rate plus low transparent fee (typically 0.5–1%). Best for regular international transfers.
• OFX: Good rates for larger transfers (£5,000+). Personal account managers for high-value transfers.
• Revolut: Very close to interbank rate with free monthly allowance; small fee above limit. Convenient for smaller amounts.
• Bank SWIFT transfers: Secure and reliable but expensive — rates typically 3–5% above mid-market plus fixed fees of £20–40 per transfer.
• PayPal International: Very poor exchange rates (3–4.5% markup). Avoid for FX; convenient for domestic or within-currency transfers only.

Fixed vs. Floating Exchange Rates

Countries manage their exchange rates in different ways:

• Free float: Currency value determined entirely by market supply and demand. UK (GBP), US (USD), EU (EUR), Japan (JPY) use floating rates — central banks may intervene in extreme circumstances but do not target a specific level.
• Managed float: Central bank actively manages the exchange rate within an unannounced target range, intervening when rates move too far. China (CNY), many emerging market currencies.
• Fixed peg: Currency fixed at a specific rate against another currency (usually USD). Saudi riyal (USD peg at 3.75); Hong Kong dollar (USD peg at 7.8). Requires large foreign currency reserves to defend the peg.
• Currency union: Multiple countries share a single currency (eurozone). No exchange rate between members; common monetary policy.

Common Questions

Why does the exchange rate on the converter differ from what my bank charges?

The converter shows the mid-market rate — the wholesale interbank rate that banks trade at with each other. Your bank adds a margin (spread) on top of this rate, plus potentially fixed fees, when providing FX to customers. The difference between the mid-market rate and your actual rate is the bank's profit on the transaction. Always compare your bank's rate against the mid-market rate to understand the real cost of converting.

What is a strong vs. weak currency?

A "strong" currency buys more of another currency (e.g., GBP/USD at 1.30 vs. 1.10 — the pound is stronger in the first case). Strong is not always better: a strong currency makes imports cheaper but exports more expensive for foreign buyers, potentially hurting export industries and tourism. A weak currency makes exports competitive but imports more expensive (contributing to inflation). Exchange rate levels reflect economic conditions and policy choices rather than being inherently good or bad.

What is foreign exchange (forex) trading?

Foreign exchange (forex) trading is speculative trading of currency pairs — betting that one currency will rise or fall relative to another. The forex market is the largest financial market in the world ($7.5 trillion daily volume). Retail forex trading is extremely risky: over 70% of retail forex traders lose money according to broker disclosures. It is highly leveraged (small movements create large gains or losses) and dominated by institutional traders with significant information advantages. Currency conversion for travel or international payments is entirely separate from speculative forex trading.