How do you measure the spread we are paying?
We compare the rate you were given with the mid-market rate at the moment you traded. The gap, expressed in basis points, is what you paid on top of the market.
spread (bps) = |your rate − mid| ÷ mid × 10,000
cost ≈ amount × spread (bps) ÷ 10,000
One basis point is one hundredth of one per cent. The mid is halfway between the price at which the market will buy a currency and the price at which it will sell it. No provider deals at mid all the time, so a spread is normal. The question is whether yours fits the size, the pair and the time of your trades.
| Item | Figure |
|---|---|
| Amount sold | £1,000,000 |
| Market mid at the time of the trade | 1.2700 |
| Rate you received | 1.2637 |
| Difference | 0.0063 |
| Spread: 0.0063 ÷ 1.2700 × 10,000 | 49.6 bps |
| Cost: £1,000,000 × 49.6 ÷ 10,000 | about £4,960 |
The figures are an illustration of the arithmetic, not a client trade or a view on what any provider charges.
What do you need from us?
A list of your FX trades for the last 6 to 12 months with the date and time, the pair, the amount, the rate and any fees. An export from your provider's platform or your administrator's records is ideal.
- Trade date and time, with the time zone if you know it
- Currency pair and which currency you bought and sold
- Amount, and which currency the amount is in
- The rate you were given, as shown on the confirmation
- Any fees or charges, including payment fees
- Value date, and whether the trade was spot or a forward
You can remove the fund's name, account numbers and counterparty details before you send anything. We do not need them, and we never need KYC documents. If you would rather test us first, start with one redacted trade and we will work it through with you.
Files are sent through our secure upload page, after you accept a short confidentiality undertaking. Spreadsheet, CSV, PDF and text exports all work.
Which market rate do you compare our trades against?
The mid-market rate at the time of each trade. How precisely we can fix that mid depends on the data source, and we tell you which one we used.
Free daily reference rates are useful but blunt. The European Central Bank publishes euro reference rates around 16:00 CET from a concertation at 14:10 CET, and says they are for information only. The Bank of England publishes daily spot rates observed around 4pm London. A trade done at 10am can be some way from a rate taken in the afternoon, so a review built only on daily rates gives an estimate, which we show as a range rather than a single number.
For timestamped intraday mids we use a licensed market data source or a provider's transaction cost analysis, and we name the source in your report. Where we only have a trade date and no time, we say so and widen the range.
What does the review show?
A short written report with your estimated spread by pair, ticket size and quarter, your fees, and what a better-fitting setup could look like. It does not promise savings and it does not recommend products.
| Section | What it tells you |
|---|---|
| Summary | Number of trades reviewed, total volume, data source used for the mid, and the estimated spread range across all trades |
| Spread by pair and size band | Where the margin is high or low, for example small tickets in a less common pair |
| Spread by quarter | Whether your pricing has drifted since you started with the provider |
| Fees and charges | Payment, receiving and other fees on top of the spread |
| Forward points | For forwards, how the points you paid compare with the interest rate difference implied by the market |
| Service issues | Late payments, cut-off problems or reporting gaps you tell us about |
| What could fit better | The kind of provider setup that suits your flows, and whether a blind quote is worth running |
What is a reasonable FX spread for an institutional trade?
It depends on the ticket size, the currency pair and when you trade, so there is no single fair number. A spread that is reasonable on a small trade in an exotic pair can be expensive on a large trade in GBP/USD or EUR/USD.
- Size: larger tickets usually attract tighter margins, so compare like with like.
- Pair: major pairs trade in deep markets, while less common currencies cost more to deal.
- Timing: liquidity is best when the main markets overlap, and thinner late on a Friday or around holidays.
- Product: a forward has the spread plus forward points, so look at both.
- How you trade: rates agreed on the phone at a busy moment can differ from the same trade on a platform.
The most useful comparison is your own spread against quotes for the same flows today. That is what a blind quote gives you.
What do a few basis points cost over a year?
On £100 million of FX a year, every 10 basis points of spread is £100,000. Type your own annual volume below to see the same table for your fund.
| Spread to mid | Cost a year |
|---|---|
| 5 basis points (0.05%) | 50,000 |
| 10 basis points (0.10%) | 100,000 |
| 15 basis points (0.15%) | 150,000 |
| 25 basis points (0.25%) | 250,000 |
| 50 basis points (0.50%) | 500,000 |
Arithmetic only: volume × basis points ÷ 10,000. These are not FundFX findings or a view on what any fund pays.
Where else can FX costs hide?
Beyond the spread on spot trades, the usual places are forward points, credit charges, cash tied up as margin, rolled forwards and fees. A review looks at each.
| Cost | How it shows up | How we check it |
|---|---|---|
| Forward points | The adjustment for the interest rate difference between two currencies, which can carry its own mark-up | Compare the points paid with points implied by market rates for the same dates |
| Credit charges | A charge for the credit line behind contracts that settle later, sometimes built into the rate | Ask the provider how credit is priced and compare with quotes for the same trades |
| Cash drag from margin | Cash posted as collateral earns little or nothing and cannot be invested | Total the margin posted over the period and the time it was held |
| Historic rate rollovers | Extending a contract at the old rate pushes the gain or loss into the new contract and can hide a charge | Look for rollovers and compare their pricing with a fresh contract |
| Payment and receiving fees | Fees per payment, for receiving funds, or charged by intermediary banks | List every fee on statements and set it against volume |
| Timing and process | Wider rates out of hours or when trades are agreed by phone or email | Group spreads by time of day and by how the trade was placed |
Has our spread crept up since we started with our provider?
The quickest way to tell is to plot your spread by quarter for the same pair and size band. A line that climbs while volumes stay steady is the pattern to look for.
Many fund finance teams tell us their provider was sharp at onboarding and less so a year or two later. Because the margin sits inside the rate rather than on an invoice, the change rarely gets noticed. The review includes a spread by quarter view for exactly this reason. Our guide to FX rate creep explains why it happens and how to stop it.
Quick spread check: what did one trade cost?
Enter the rate you were given and the market mid at the same moment. The check uses only your figures, nothing is sent to us and nothing is assumed.
If one trade looks expensive, the full review will show whether it is a one-off or a pattern.
How long do you keep our trade data?
Only as long as the review needs. Files are encrypted when they arrive and deleted within 90 days, or sooner if you ask.
Trade data is used only to prepare your review. It is never shared with a provider in a form that identifies your fund, and access is limited to the people preparing the review. If you want a signed non-disclosure agreement before sending anything, ask us and we will send one. More detail is on our client money and confidentiality page.
What happens after the review?
You decide. Many funds use the review as evidence to renegotiate with their current provider, some run a blind quote, and some do nothing for now.
If you want to compare, we can put your main flows to several providers without naming your fund. If you decide to move, our 90-day switching plan keeps your bank or current provider running until the new one has proved itself.
Sources
- European Central Bank, Euro foreign exchange reference rates, checked 1 November 2026.
- Bank of England, Daily spot exchange rates against sterling, checked 1 November 2026.