FX markup

FX markup: how much worse the rate in your payment is than a benchmark. The benchmark is the exchange rate at the time of the deal or the official Bank of Russia rate on the payment date. When you buy currency to pay a supplier, the markup makes each unit of currency more expensive.

Why you need to calculate it

The markup is income for the bank or agent, just like the fee. It simply does not show up on the “fee” line. An offer with a low fee and a high markup may turn out more expensive than one with a high fee and a rate close to the exchange rate.

How to calculate it

Markup, % = (rate in the payment order / benchmark - 1) × 100.

A hypothetical example: the benchmark is 100.00 roubles, the rate in the payment order is 102.00 roubles. Markup: 2%.

The all-in rate of a payment is made up of the agent’s fee, the FX markup and fixed charges. The easiest way is to calculate it from the total:

all-in rate, % = (roubles debited / (currency amount received by the beneficiary × benchmark) - 1) × 100.

This figure is the price of the payment. It is convenient for comparing banks and agents.

What to watch for

• Compare the rate and the benchmark at the same moment. The rate can move noticeably within a day.
• A rate “on the execution date” does not let you calculate the markup in advance.
• A route may involve several conversions, each with its own markup. The final rate is what matters.
• If the fee is “from 0%”, look for the cost in the rate.

How to compare with us

In the payment order for a payment arranged by VEDmost, the rate is written down before the roubles are debited. Tell us your current rate or send the documents from a past payment. We’ll calculate the full cost, including the FX markup and fixed charges, and look for a lower rate in our pool. If we can’t find one, we’ll say so: Compare your rate.