Foreign Exchange Fee
From Open Risk Manual
Definition
Foreign Exchange Fee. They are the charges to mark up to the mid-market (also known as interbank) rate.
The midpoint between the purchase and the sale prices of the two currencies on the global currency markets determines this rate. Providers that process FX payments often add a high commission to this rate in order to make a margin from the transaction and cover its risks. Fees may also be added when a transaction has to pass through multiple correspondent financial institutions to reach the recipient.
