Is a "zero-fee" transfer really free? How FX markups work
Every transfer has two costs: the visible fee and the exchange-rate markup. Many "zero-fee" services give you a rate 1–3% worse than the mid-market rate, and that gap never appears on a fee table.
What a 1% markup costs
At the ECB reference rate on 2026-10-07, 1 SGD = 5.2363 CNY. On a 10,000 SGD transfer:
| Markup | Rate you get | Recipient gets less by |
|---|---|---|
| 0.5% | 5.2101 | 261.81 CNY |
| 1% | 5.1839 | 523.63 CNY |
| 2% | 5.1316 | 1,047.26 CNY |
| 3% | 5.0792 | 1,570.89 CNY |
How to check
- Look up the mid-market rate (shown live in our calculator).
- Compute the markup: (mid − offered) ÷ mid.
- Add the fee. That's your true cost.
The simplest comparison
Ignore the fee and the rate on their own; compare only what the recipient finally receives. That one number includes both costs.
Frequently asked questions
What is the mid-market rate?
The midpoint between the buy and sell prices on the wholesale market: the fairest benchmark for comparing transfer costs.
What markup is normal?
It varies widely: some digital services convert at or near the mid-market rate and charge a fee, while traditional channels often add 1–3%.