Most currency exchange services advertise zero commission or no fees — but they profit from the exchange rate itself. The mid-market rate is the real rate (the one shown on Google or this site). When you exchange, you receive a worse rate. The gap between the mid-market rate and what you receive is the markup, and it is often 2–5% at banks or 10%+ at airports.

How to Calculate the Hidden Markup

Check the mid-market rate on Serafa before any exchange. Then compare it to the rate you are being offered. If USD/SAR is 3.75 and a bank offers you 3.65, you are losing 2.7% on the exchange. On a $5,000 transfer, that is $135 lost silently — more than any flat fee.

Worst Places to Exchange Currency

Airport exchange desks charge the highest spreads — often 8–12% above mid-market. Hotel desks are similarly expensive. Dynamic currency conversion (when a foreign ATM or card terminal offers to charge you in your home currency) almost always uses a terrible rate — always choose to pay in the local currency.

Best Ways to Exchange Currency

Online money transfer services like Wise, Remitly, and Revolut offer rates very close to mid-market (often within 0.5%). Your bank's international wire transfer is usually cheaper than cash exchange but still carries a markup plus a flat fee. For cash, order from your bank in advance rather than at the airport — rates and fees are significantly better.

Questions to Ask Before You Exchange

Always ask: What is the exchange rate you are giving me? Is there a flat fee on top? Are there any receiving fees at the other end? For international transfers: is the rate locked when I confirm, or does it change before the transfer settles? Getting clear answers to these questions before committing will save you significant money.