Exchange Rate: What it is and how to get the best rate for transfers from the U.S.
What is the exchange rate?
The exchange rate is the price of one currency expressed in terms of another. Simply put: how many units of the local currency you receive for every dollar you send.
For example, if the exchange rate is 20 units of local currency per dollar, your beneficiary receives 20 units for every dollar sent.
If you send $300 with that rate, they receive 6,000 units. If the rate were 19.80, they would receive only 5,940. A difference of 0.20 in the rate equals 60 fewer units for your family on each transfer.
Market exchange rate and provider margin
Not all rates are the same. There are two you should know about:
- Interbank rate (mid-market rate): This is the "real" market exchange rate, used by banks and financial institutions to trade currencies with each other. It is the fair benchmark, and you can check it on Google by searching for, for example, "dollar price" or in our Dollar price today calculator for Latin America.
- Provider exchange rate: This is the exchange rate that the money transfer service provider offers you. It is almost always less favorable than the interbank rate because the provider applies an exchange margin, which varies by provider. That difference is part of how the provider generates revenue.
A 1% difference on a monthly $300 transfer means $3 less per transfer, or $36 a year that your family does not receive. On larger transfers, the impact is greater.
Types of exchange rates
| Type | Description |
|---|---|
| Interbank rate (mid-market rate) | The exchange rate at which banks and financial institutions trade currencies with each other. It is the market benchmark. |
| Fixed exchange rate | It is locked in at the moment you confirm the transfer. What you see is what your family member receives. |
| Floating exchange rate (live) | It changes throughout the day based on the supply and demand of currencies. |
| Preferential exchange rate | An improved rate that some services offer based on volume, loyalty, or promotions. |
How to check the exchange rate before sending money
- Look for the reference rate on Google ("dollar price today") or in our calculator for the Dollar price today in Latin America.
- Compare the exchange rate offered by the provider against that reference.
- Consider whether the provider charges an additional Fee for sending money.
- Calculate how much your family member will receive with each service, not just how much you pay.
- For large transfer amounts, it is worth comparing two or three services on the same day.
How to know Félix's exchange rate
With Félix, you see the exchange rate applied to your transfer and the exact amount your family will receive in local currency before confirming. That rate already reflects Félix's exchange margin: there is no separate charge for the exchange rate. Check how the rate and the fee are added up in how much Félix charges in fees.
To understand more about how costs and rates affect the real price of your transfers, consult our complete guide: Money transfers and remittances from the U.S.: Everything you need to know in 2026.
