Whether you're sending money to support family, pay tuition, or fund a business overseas, the exchange rate plays a crucial role in determining how much your recipient actually receives. But for many, it’s also the most misunderstood part of an international money transfer.
Let’s break down how exchange rates work — and more importantly, how to know if you’re getting a fair deal.
What Is an Exchange Rate?
An exchange rate is simply the price of one currency in terms of another. For example, if 1 GBP equals 1.30 USD, it means for every £1.00, you get $1.30, and that’s your GBP to USD exchange rate. These rates fluctuate constantly due to factors like inflation, interest rates, political stability, and global market demand for currencies and trade.
However, the rate you see on Google or XE.com (called the “mid-market rate”) is often not the rate you get when sending money abroad. This is where most people unknowingly lose out.
The Spread: Where Extra Costs Hide
Many money transfer services, including traditional banks, add a markup to the mid-market rate — often 2% to 6% — and keep the difference as profit. That’s on top of any flat service fee they charge. So even if they advertise “low fees,” you could still lose significant value in the exchange.
This is why it's essential to compare providers — not just their fees, but their actual exchange rates.
How to Know If You’re Getting a Fair Deal
Use RemitFinder.com
RemitFinder.com is a powerful, free comparison tool that helps you quickly see the real cost of sending money across borders if sending remittances through online money companies. It shows you the total amount your recipient will get — factoring in exchange rates, transfer fees, and delivery time. It’s one of the easiest ways to make sure you’re not being overcharged.
Choose a Trusted Provider Like Dahabshiil
For decades, Dahabshiil has built a reputation for transparency and trust — especially within African and Middle Eastern communities. They offer competitive exchange rates, low fees, and extensive reach in both urban and rural areas, including cash pickup options where banking infrastructure is limited. If you're sending money to places like Somalia, Kenya, or Ethiopia, Dahabshiil is often the most cost-effective and reliable choice.
Check the Mid-Market Rate First
Before committing, look up the real-time mid-market rate on a site like XE.com. Then compare it to the rate offered by the provider. The smaller the gap, the better the deal.
Take Control of Your Transfers
Don’t let hidden exchange rate markups chip away at your hard-earned money. Use tools like RemitFinder.com to compare offers side-by-side, and consider providers like Dahabshiil that have built trust through fairness and accessibility.
In a world where every dollar, pound, or euro counts — knowing how exchange rates work can make all the difference for you and your loved ones.
Conclusion: Make Informed Transfers, Every Time
Understanding how exchange rates work isn't just for economists — it's essential knowledge for anyone sending money internationally. Whether you're supporting family back home, paying for education, or funding cross-border projects, a small difference in exchange rates can have a big impact over time.
The good news?
You don’t need to be a financial expert to get a fair deal. With trusted services like Dahabshiil, known for transparency and affordability, and tools like RemitFinder.com that do the heavy lifting of comparison for you, you can take full control of your international transfers.
Next time you send money abroad, don’t just look at the fees look at the real exchange rate. Make sure it’s working for you, not against you.
Because every cent you save is one more cent that makes a difference where it truly matters.