Currency spread
A hidden cost of exchanging currency — the difference between the buy and sell rate.
Definition
The difference between the price at which an institution buys a currency and the price at which it sells it. That difference is its earning on the exchange.
How it works in practice
The bigger the spread, the more you lose on the exchange — even when "commission = 0". Polish banks often do not publish the spread as a percentage (the rate is set in an online exchange), so in the comparison it may show as missing data.
Why it affects your choice
Two "no-commission" products can differ in real cost precisely because of the spread.
Watch out
Look at the total cost (spread + fee), not just the "no commission" slogan.
WTP Finance is for information only; we do not give financial advice.