We understand that if you are a wholesale customer trading internationally, you may wish to assess the currency conversion rate offered for your payments and transfers. The information below explains how we determine the rate you receive, and the related information we provide.
In some markets we may provide additional information about foreign exchange rates applied to transactions for our wholesale banking customers. This additional information may include the mid-market rate and the timestamp associated with a currency conversion, and may be provided online at the time of authorising a payment transaction, or in your statements or transaction advices. The provision of mid-market and timestamp information is not yet available across all HSBC platforms and in all markets.
Please do contact your HSBC Client Service representative if you have any questions about our foreign exchange rates.
What exchange rate will I get?
We use the HSBC exchange rate to convert payments to and from currencies that differ to your account currency. The rate is based on the exchange rate market for each currency we offer, so it fluctuates in accordance with market conditions.
What is the mid-market rate?
The mid-market rate indicates the midpoint between the prevailing rates at which HSBC could buy or sell one currency against another in the interbank market. It’s based on the exchange rate market for each currency we offer, so it fluctuates in accordance with market conditions. We provide this rate for information purposes only, as it doesn’t include the costs and charges we incur when conducting the currency conversion and our commercial return on the risk we assume under the transaction.
How does the mid-market rate help me?
We provide the mid-market rate information to help you assess the rate at which the currency conversions for your payments and transfers are offered. You can do this by comparing the mid-market rate to the HSBC exchange rate, which includes:
- the costs and charges we incur when conducting the currency conversion
- our commercial return on the risk we assume under the transaction
Why am I not offered the mid-market rate?
The mid-market rate does not include our costs. The HSBC exchange rate includes our risk appetite, the costs and charges we incur when conducting the transaction, and our commercial return on the risk we assume under the transaction.
How does the FX conversion timestamp help me?
The timestamp gives the exact day and time at which we performed the FX rate conversion. As rates fluctuate throughout the day in accordance with market conditions, the timestamp can help you compare the HSBC FX rate with rates from other sources.