/forcfo/ — FX Intelligence
The B2B FX Markup Report 2026
What Every Importer, Exporter, and Corporate Treasurer Is Actually Paying on Currency Conversion — And What They Should Be Paying
March 2026 · Mohsen M. Thakur, COO & Co-Founder, Unicorn Currencies
FINTRAC registered (MSB: C100000159) · Bank of Canada RPAA registered PSP · Operating through FCA-authorised partners in the UK
Executive Summary (50 words)
UK and North American banks charge businesses 1.5–3.5% above the interbank FX rate on every currency conversion, costing a business processing £1M annually between £15,000 and £35,000 in hidden margin. Specialist B2B platforms reduce this to 0.3–1.0%. This report benchmarks 15 providers across 8 metrics with worked cost examples.
The Core Problem: What You Pay vs What You Think You Pay
There are two prices for every currency in the world.
The first is the interbank rate — also called the mid-market rate. This is the rate banks use when they trade with each other. It is published in real time on platforms like Reuters and Bloomberg. It is the "true" price of a currency at any given moment.
The second is the rate your bank gives you. This rate is always worse. The gap between these two numbers is the FX markup — and it is the single largest hidden cost in cross-border business.
Unlike a wire transfer fee, which appears as a line item on your bank statement, the FX markup is invisible. Your bank does not show you the interbank rate. It shows you "the rate" — a single number that already includes their profit margin. You see £1 = $1.2650. The interbank rate at that moment was £1 = $1.2720. The difference — $0.0070 per pound — is the markup. On a £100,000 payment, that is £550 taken from your business without appearing on any invoice, any statement, or any fee schedule.
Most businesses never calculate this number. The ones that do are typically saving £15,000–£50,000 per year by moving their FX away from their bank.
The Benchmark: 15 Providers, 8 Metrics, One Table
We analysed the publicly available fee structures, FX markups, and service capabilities of 15 providers used by UK and international businesses for cross-border payments. All data was verified from provider websites, published fee schedules, and independent review sources as of February 2026.
How to read this table
FX Markup is the percentage above the interbank mid-market rate that the provider adds. This is the most important column — it determines the real cost of every conversion.
Transfer Fee is the flat or variable fee charged per transaction, separate from the FX markup.
Cost on £100K is what a single £100,000 GBP-to-USD conversion would cost your business through each provider, combining markup and fees.
Annual Cost on £1M extrapolates that to £1M in annual conversions across 10 quarterly payments — the typical pattern for a mid-market importer paying overseas suppliers.
The Data
| Provider | Type | FX Markup | Transfer Fee | Settlement | Local Accounts | Cost on £100K | Annual Cost on £1M | Forward Contracts |
|---|---|---|---|---|---|---|---|---|
| HSBC | Bank | 1.5–3.5% | £4–£30 per wire | 3–5 days | GBP only (multi-currency for Premier) | £1,530–£3,530 | £15,300–£35,300 | Yes (relationship) |
| Barclays | Bank | 2.0–4.0% | £0–£25 per wire | 3–5 days | GBP, EUR, USD | £2,025–£4,025 | £20,250–£40,250 | Yes (relationship) |
| Lloyds | Bank | 2.0–3.5% | £0–£9.50 online | 3–5 days | GBP only | £2,010–£3,510 | £20,100–£35,100 | Limited |
| NatWest | Bank | 2.0–3.5% | £0–£15 | 3–5 days | GBP, EUR | £2,015–£3,515 | £20,150–£35,150 | Limited |
| Bank of America | Bank | 1.0–3.0% | $35–$45 per wire | 3–5 days | USD only | £1,035–£3,045 | £10,350–£30,450 | Yes (relationship) |
| RBC | Bank | 1.5–2.5% | CA$0–CA$45 | 3–5 days | CAD, USD | £1,530–£2,530 | £15,300–£25,300 | Yes (relationship) |
| OFX | Broker | 0.4–1.5% | £0 | 1–3 days | None | £400–£1,500 | £4,000–£15,000 | Yes |
| Moneycorp | Broker | 0.4–1.5% | £0 | 1–2 days | GBP, EUR, USD | £400–£1,500 | £4,000–£15,000 | Yes |
| Currencies Direct | Broker | 0.3–1.4% | £0 | 1–2 days | GBP, EUR, USD | £300–£1,400 | £3,000–£14,000 | Yes |
| Ebury | Broker | 0.3–1.0% | £0 | Same day–2 days | 25+ currencies | £300–£1,000 | £3,000–£10,000 | Yes |
| Wise Business | Fintech | 0.33–0.57% (transparent) | £0 | 1–2 days | 9 currencies | £330–£570 | £3,300–£5,700 | No |
| Airwallex | Fintech | 0.5–1.0% | £0 | Same day | 20+ currencies | £500–£1,000 | £5,000–£10,000 | No |
| Revolut Business | Fintech | 0.0–0.6% (within plan allowance) | £0 (within plan) | Instant–1 day | 25 currencies | £0–£600 | £0–£6,000* | No |
| Payoneer | Fintech | 0.5–2.0% | £0–£15 | 2–5 days | 8 currencies | £515–£2,015 | £5,150–£20,150 | No |
| PayPal Business | Platform | 3.0–4.5% | 2.9%+£0.30 per transaction | Instant | None (PayPal balance only) | £5,900–£7,400 | £59,000–£74,000 | No |
*Revolut's 0% FX rate is limited to monthly allowances per plan tier (£0/month on Basic, £10K on Grow, £50K on Scale). Once exceeded, a 0.4–0.6% markup applies. Weekend and out-of-hours conversions carry a 1% surcharge. The £0 annual figure is achievable only on Scale plan within allowance limits.
What This Table Tells You: Five Findings
Finding 1: The average UK bank charges 7–12x more than the cheapest specialist
A business converting £100,000 through Barclays pays between £2,025 and £4,025. The same conversion through Wise costs £330–£570. Through Currencies Direct, £300–£1,400. The markup gap between banks and specialists is not 10% or 20% — it is 400–1,200%.
This is not a rounding error. On £1M in annual FX, the difference between using Barclays and using Wise is £14,550–£34,550 per year. For a mid-market importer operating on 5–8% net margins, that is the equivalent of £400,000–£700,000 in additional revenue needed just to cover the FX cost difference.
Finding 2: "No transfer fee" is meaningless — the markup IS the fee
HSBC, Barclays, and NatWest all offer "free" online transfers to certain destinations. This means nothing. The cost is in the rate. A "free transfer" with a 2.5% FX markup on £100,000 costs £2,500. A £15 transfer fee with a 0.4% markup costs £415. The "expensive" option is £2,085 cheaper.
Every provider in this table that advertises "no transfer fees" makes its money on the FX markup. The question is not whether they charge — it is whether they show you what they charge.
Finding 3: PayPal is the most expensive option by an extraordinary margin
PayPal's combined FX markup and cross-border fees make it 10–20x more expensive than specialist alternatives for B2B supplier payments. A business processing £1M annually through PayPal pays £59,000–£74,000 in total fees. The same volume through Wise costs £3,300–£5,700.
PayPal has a legitimate use case for receiving e-commerce payments with buyer protection. It has no legitimate use case for paying international suppliers. Every pound sent to an overseas supplier via PayPal is leaving £45–£70 per £1,000 on the table versus a specialist platform.
Finding 4: Fintechs are transparent but not always cheapest at scale
Wise publishes exact fees for every corridor — this is genuine transparency and should be the industry standard. But Wise does not offer forward contracts, which means businesses cannot lock in a rate for future payments. For a business converting £250,000 per quarter, a 2% currency move between booking and payment costs £5,000 — more than Wise's annual fee saving versus a broker who offers forwards.
OFX, Moneycorp, Currencies Direct, and Ebury all offer forward contracts with potentially lower margins for high-volume clients. Their rates are negotiable, meaning the published "0.4–1.5%" range narrows considerably for businesses processing £1M+. The optimal strategy is often to use a specialist broker for large, planned payments with forward cover, and a fintech for smaller or ad-hoc conversions.
Finding 5: Local bank accounts are the hidden multiplier
The FX markup is only part of the cost. When a UK business wires GBP to a Chinese supplier through SWIFT, the payment passes through 2–3 correspondent banks. Each intermediary may deduct £10–£25. The supplier receives less than expected. This creates reconciliation disputes, delayed shipments, and relationship friction.
Providers offering local bank accounts in multiple regions — where a business can hold and receive currency locally before converting — eliminate correspondent bank deductions entirely. The payment settles as a domestic transfer in the destination country. Faster, cheaper, and with no intermediary surprises. Of the 15 providers benchmarked, only Ebury, Airwallex, Revolut, and specialist B2B platforms offer local accounts in 5+ regions.
The Real Cost: Three Business Scenarios
Scenario 1: UK Textile Importer — £2M Annual FX
Profile: A Manchester-based business importing fabrics from Turkey, India, and China. Converts GBP to TRY, INR, and CNY quarterly. Currently uses Lloyds.
| Metric | Lloyds (current) | Wise | Specialist B2B platform |
|---|---|---|---|
| FX markup (avg) | 2.5% | 0.55% | 0.3–0.5% |
| Annual FX cost | £50,000 | £11,000 | £6,000–£10,000 |
| Forward contracts | No | No | Yes |
| Local CNY/INR accounts | No | No | Yes (settle locally) |
| SWIFT intermediary fees | ~£1,200/year | £0 | £0 |
| Total annual cost | £51,200 | £11,000 | £6,000–£10,000 |
| Annual saving vs bank | — | £40,200 | £41,200–£45,200 |
Scenario 2: Canadian Tech Company — $3M USD Annual FX
Profile: A Toronto SaaS company paying contractors in the Philippines, Poland, and Brazil. Converts CAD to PHP, PLN, and BRL monthly. Currently uses RBC.
| Metric | RBC (current) | Airwallex | Specialist B2B platform |
|---|---|---|---|
| FX markup (avg) | 2.0% | 0.7% | 0.3–0.5% |
| Annual FX cost | $60,000 | $21,000 | $9,000–$15,000 |
| Batch payments | No | Yes (API) | Yes |
| Local PHP/PLN accounts | No | Yes | Yes |
| Annual saving vs bank | — | $39,000 | $45,000–$51,000 |
Scenario 3: UAE Food Wholesaler — £5M Annual FX
Profile: A Dubai-based wholesaler importing dairy from New Zealand, meat from Brazil, and grains from Canada. Converts AED to NZD, BRL, and CAD. Currently uses a local UAE bank.
| Metric | UAE bank (current) | OFX | Specialist B2B platform |
|---|---|---|---|
| FX markup (avg) | 3.0% | 0.8% | 0.3–0.5% |
| Annual FX cost | £150,000 | £40,000 | £15,000–£25,000 |
| Forward contracts | Limited | Yes | Yes |
| Local accounts in 5 regions | No | No | Yes |
| Annual saving vs bank | — | £110,000 | £125,000–£135,000 |
Methodology
This report benchmarks publicly available pricing from 15 providers as of February–March 2026. FX markups are expressed as the percentage above the interbank mid-market rate.
Sources: Provider websites, published fee schedules, independent review platforms (Exiap, Statrys, MyCurrencyTransfer), verified user-reported data, and the author's 20+ years of direct experience executing B2B FX transactions across these corridors.
Limitations: Bank FX markups vary by relationship tier, transaction volume, and negotiation. The ranges shown represent typical business account rates, not negotiated institutional rates. Fintech and broker rates may also vary by corridor and time of execution. All GBP-to-USD examples use a hypothetical interbank rate of £1 = $1.2700 for consistency.
How we calculated "Cost on £100K": (FX markup percentage × £100,000) + transfer fee. Where a range of markups exists, we show minimum and maximum cost.
How we calculated "Annual Cost on £1M": Cost on £100K × 10 (representing 10 quarterly payments of £100K each, the typical pattern for a mid-market importer).
What To Do Next
Step 1: Calculate your current FX cost. Take your last 10 international payments. For each, compare the rate your bank gave you against the interbank mid-market rate at the exact time of conversion (available on Google, XE, or Reuters). The difference, as a percentage, is your markup. Multiply by your annual FX volume. Most businesses that do this calculation for the first time discover they are paying 3–10x more than they expected. You can use our audit your bank's FX markup guide, or our demurrage calculator to understand the full cost of delays.
Step 2: Separate your FX from your bank. Your bank does two things for you: it holds your money and it converts your money. These are separate services. You do not need to use the same provider for both. The businesses in this report that pay the least all use their bank for domestic banking and a specialist provider for FX conversion.
Step 3: Match the provider to the payment type. For planned, large quarterly payments to suppliers: use a provider offering forward contracts so you can lock the rate in advance and protect your margin. For regular, smaller payments to contractors or partners: use a transparent fintech with low variable fees and multi-currency accounts. For both: use a specialist B2B platform that offers local accounts in the currencies you operate in, so you can receive and hold currency before converting — and settle as a domestic payment rather than an international wire. See our comparison pages for head-to-head provider breakdowns.
About This Report
This is the first edition of the B2B FX Markup Report, published by Unicorn Currencies. We intend to update it annually as provider pricing evolves.
Unicorn Currencies is a Canadian-headquartered fintech specialising in cross-border payments and foreign exchange for importers, exporters, and mid-market businesses. We are registered with FINTRAC (MSB: C100000159), registered with the Bank of Canada under the RPAA as a Payment Service Provider, and operate in the UK through FCA-authorised partners.
If your business processes £1M+ in annual FX and you want to see how your current rate compares to the benchmarks in this report, we offer a free, no-obligation rate comparison.
For press enquiries, data licensing, or corrections to this report, contact hello@unicorncurrencies.com.
© 2026 Unicorn Currencies Limited. This report may be cited and referenced with attribution. Data may not be reproduced in full without written permission.
Frequently asked questions
How much do UK banks charge on FX markup for business payments?
UK high-street banks (HSBC, Barclays, Lloyds, NatWest) typically charge 1.5–3.5% above the interbank mid-market rate on business FX conversions. On £100,000, this costs £1,500–£3,500 per transaction. This markup is hidden in the exchange rate and does not appear as a separate fee on your bank statement.
What is the cheapest way to convert currency for a business?
Specialist B2B FX platforms and brokers charge 0.3–1.0% above the interbank rate, compared to 1.5–3.5% at UK banks. Wise Business charges 0.33–0.57% transparently. OFX and Currencies Direct offer negotiable rates from 0.3% for high-volume clients. For a business converting £1M annually, the saving versus a bank is typically £15,000–£35,000 per year.
How do I calculate my bank's hidden FX markup?
Compare the exchange rate your bank gave you against the interbank mid-market rate at the exact time of conversion (available on Google, XE, or Reuters). The difference as a percentage of the mid-market rate is your markup. Multiply by your annual FX volume to calculate the total hidden cost.
Is there a specialist FX provider for B2B importers and exporters?
Yes. Specialist B2B FX providers like Unicorn Currencies are purpose-built for importers and exporters processing £1M+ in annual foreign exchange. They offer local bank accounts in the US, UK, Europe, Canada, and UAE for domestic settlement, same-day settlement in 35+ currencies, forward contracts for hedging, and rates up to 70% cheaper than high-street banks.
See your number vs the market
For companies with £1M+ annual FX volume. We'll show you your current cost and what specialist FX would cost on your corridors.