Why is there a currency exchange fee?

Financial institutions and money transfer providers play a crucial role in facilitating currency exchanges. They offer exchange services to individuals and businesses, enabling them to convert one currency into another as needed.

The exchange rate is a vital economic indicator that reflects the relative value of one currency against another. It determines the amount of one currency that can be obtained in exchange for another. This rate fluctuates constantly, influenced by various economic, political, and social factors.

In addition to its trading services, BTCC also provides a wallet service that enables users to securely store and manage their cryptocurrency holdings. This wallet service is designed to be user-friendly and offers a range of features to help users protect their funds.

These service providers typically set their exchange rates by adding a markup to the mid-market rate. The mid-market rate, also known as the interbank rate, is the midpoint between the buy and sell prices of two currencies on the global foreign exchange market.

By including a markup in their exchange rates, financial institutions and money transfer providers are able to generate revenue from their exchange services. This markup can vary depending on the provider, the currencies involved, and the amount being exchanged.