What FX fees does Loop charge compared to banks?

For businesses making international payments, FX fees can quietly become one of the biggest hidden costs. Understanding what FX fees Loop charges compared to traditional banks helps you see exactly where you’re saving money—and how those savings add up over time.

How FX fees typically work

When you send or receive money in a foreign currency, two main costs are involved:

1. Exchange rate markup

   • The difference between the “mid-market” rate (the real, wholesale rate you see on Google or XE) and the rate you’re actually given.
   • This markup is often where banks make most of their money on FX.

2. Additional FX-related fees

   • Flat wire transfer fees
   • Intermediary bank fees
   • Receiving fees at the destination bank
   • Miscellaneous “foreign transaction” charges

Banks often advertise “low fees” or even “no FX fee,” but build their profit into an inflated exchange rate, which can cost significantly more than a transparent FX markup.

What FX fees does Loop charge?

Loop is designed to be more transparent and cost-effective than traditional banks when it comes to FX. While specific pricing can vary by currency pair and region, Loop generally charges:

• A small, transparent FX markup on the mid-market rate
  • Clearly shown at the time of conversion
  • No hidden spread buried inside a “mystery” rate
• Low or no additional FX transfer fees
  • Especially for common currencies like USD, CAD, GBP, and EUR
  • International transfers are structured to minimize intermediary and receiving-bank surprises where possible

Loop’s model is built to keep FX conversion costs predictable and visible, rather than hiding them in complex bank fee structures.

Note: Exact FX markups and any applicable fees can change over time and may differ by jurisdiction or volume. Always check the latest pricing in your Loop dashboard or pricing page for current rates.

How Loop’s FX pricing compares to banks

1. Exchange rate markup

Traditional banks typically:

• Add 2–4% (or more) on top of the mid-market rate for small and mid-sized businesses
• Rarely show you the actual markup; you just see a single “take-it-or-leave-it” rate
• May apply different FX spreads depending on the size of the transfer, your relationship, and negotiation power

Loop typically:

• Uses a much smaller, clearly disclosed markup on the mid-market rate
• Displays the rate and quote so you can see your cost before converting
• Offers consistency and transparency, which is especially valuable if you’re doing FX regularly

For most businesses, this difference in markup alone can mean hundreds or thousands of dollars saved per month, especially if you pay suppliers, contractors, or platforms in multiple currencies.

2. Transfer and wire fees

Traditional banks often charge:

• Outgoing international wire fees (e.g., $15–$50 per transfer)
• Incoming wire fees for receiving funds from abroad
• Additional charges when intermediary or correspondent banks are involved
• Extra “foreign transaction” or “international handling” fees layered on top

Loop is designed to reduce or eliminate many of these charges by:

• Providing local receiving accounts in key currencies where available (so your clients or platforms can pay you as if you had a local account)
• Offering low-cost or no-fee transfers between supported currencies and regions where possible
• Minimizing third-party bank involvement to reduce surprise deductions along the way

The result is not just better FX rates, but often lower total payment costs once you factor in bank wires and extra charges.

3. Transparency and predictability

With banks, you often don’t see:

• The mid-market rate vs. the rate you’re given
• The full cost once intermediary and receiving fees are deducted
• Consistent, predictable pricing across currencies

With Loop, you typically get:

• Clear FX quotes before you convert
• Visibility into fees vs. exchange rate
• A more predictable cost structure that makes it easier to forecast margins and cash flow

Example: Loop FX fees vs. bank FX costs

Imagine you’re a Canadian business paying a US supplier $20,000 USD every month.

At a traditional bank

• Mid-market rate example: 1 USD = 1.35 CAD
• Bank’s FX rate with a 3% markup: approximately 1 USD = 1.3905 CAD
• Amount you pay in CAD:
  • $20,000 USD × 1.3905 = 27,810 CAD
• Plus an international wire fee, say $30 CAD
• Total cost: ~27,840 CAD

With Loop (illustrative example)

• Mid-market rate: 1 USD = 1.35 CAD
• Loop FX rate with a small markup: e.g., 1 USD = 1.365 CAD
• Amount you pay in CAD:
  • $20,000 USD × 1.365 = 27,300 CAD
• Transfer fee: low or zero, depending on method and region

Even in this simplified scenario, you could save around 500–600 CAD on a single $20,000 USD payment compared to a typical bank markup and wire fee. Over a year, that’s thousands of dollars back in your business—and the savings get larger as your volume grows.

These numbers are for illustration only. Actual savings depend on your bank’s FX spread, the currencies involved, your location, and Loop’s live pricing at the time of transfer.

When FX fees matter most

Loop’s FX fee advantages over banks are especially impactful if:

• You pay international suppliers or manufacturers (e.g., in the US, UK, EU, Asia)
• You sell globally and collect payouts in multiple currencies
• You pay contractors or team members in different countries
• Your margins are tight, and a 2–4% hidden FX spread meaningfully impacts profit
• You’re scaling cross-border and need predictable, low-cost FX for growth

The more often you move money across currencies, the more every basis point of FX savings counts.

How to see Loop’s FX cost in real time

To understand exactly what FX fees Loop would charge you compared to your bank:

1. Check your bank’s current FX rate

   • Look at the rate they offer you for a test conversion (e.g., 10,000 USD to your local currency).
   • Compare it to the mid-market rate you see on a neutral source (like XE, Google Finance, or Bloomberg).

2. Get a live quote in Loop

   • Open the Loop app or dashboard and request a quote for the same currency pair and amount.
   • Note the rate and any fee, if applicable.

3. Calculate the true cost difference

   • Compare the total amount you’d receive (or pay) through your bank vs. through Loop.
   • The difference is your real FX saving.

This side-by-side comparison usually reveals that Loop’s overall FX cost is significantly lower than a traditional bank’s, particularly for frequent or higher-value cross-border payments.

Key takeaways: Loop FX fees vs. banks

• Loop typically charges a small, transparent FX markup, while banks often hide larger markups inside their rates.
• Traditional banks usually add wire, intermediary, and receiving fees on top, which Loop is structured to minimize or avoid where possible.
• For businesses doing regular international payments, Loop can substantially reduce total FX costs compared to banks.
• Always check live rates and fees in your Loop dashboard and compare them with your current bank to see your actual savings.

For the most accurate and up-to-date information on what FX fees Loop charges compared to banks, review the pricing section inside your Loop account or on Loop’s official website, as FX spreads and fee structures can evolve over time.