Guide
The exchange-rate markup: where a $0 fee transfer still costs you
A $0 fee means nothing by itself. If the rate you are offered is 3.6% worse than the mid-market rate on $500, you just paid $18 for a free transfer.
Markup cost on $500, by channel
The dollar value of the rate gap alone. Fees and tax are not in these bars.
Every provider buys currency near the mid-market rate, the rate you see on a currency converter. What you get is that rate minus a markup. The markup is a percentage, it scales with your amount, and many checkout screens never name it.
The ten-second check
- Look up the mid-market rate. Our reference for October 26, 2026 is 18.60 MXN per dollar.
- Divide what the recipient gets by what you send. That is the rate you were actually offered.
- Subtract. If you send $500 and receive 9,120 MXN, your rate is 18.24. The gap is 0.36 per dollar, a markup of about 1.9%, worth roughly $9.70.
Typical markup widths in our parameters
| Channel | To Mexico | To Philippines |
|---|---|---|
| Online service | 0.6% | 0.8% |
| Cash pickup network | 1.8% | 2.0% |
| Bank wire | 3.2% | 3.5% |
Wise states publicly that it uses the mid-market rate with no markup and charges a visible fee instead. That is the cleanest pricing shape to compare against: fee you can see, rate you can verify.
First-transfer promo rates break the pattern on purpose. A special rate can be better than mid-market for the first $1,000, then revert. Fine if you know. Expensive if you assume it lasts.
FAQ
Where do I find the mid-market rate?
Any major currency converter shows it. Note the date and time, since rates move through the day.
Is a markup illegal?
No. It is a price, not a hidden crime. The problem is only that it is hard to see, which is why we price it as a dollar line in every table.