When sending money internationally, most people focus on fees—yet the exchange rate often has a bigger impact on how much your recipient ultimately receives. Even a small difference in the rate can significantly change the payout amount, especially for regular senders.

In this guide, we break down what exchange rates are, why they fluctuate, and how you can make smarter transfer decisions to get the best possible value.

1. What Exactly Is an Exchange Rate?

An exchange rate is the price of one currency compared to another.

For example:
1 GBP = 1200 NGN means one British pound is worth 1200 Nigerian naira.

This rate determines:

• How much your recipient receives

• Whether your transfer is cost-effective

• How fees and markups affect your total payout

Understanding this helps you choose the best time and method to send money.

2. Why Exchange Rates Change Constantly

Exchange rates fluctuate throughout the day due to global economic factors. Some of the strongest influences include:

• Inflation

Countries with lower inflation usually have stronger currencies.

• Interest Rates

Higher interest rates attract foreign investors—strengthening a currency.

• Political Stability

Uncertainty causes currencies to lose value, while stability strengthens them.

• Market Demand

If businesses or investors want more of a currency, its value rises.

• Global Economic Conditions

World events, oil prices, and economic data all influence currency behavior.

These fluctuations can work for or against you depending on when you send money.

3. The Hidden Impact of FX Markups

Many traditional banks and money transfer services apply hidden exchange rate markups. This happens when a provider offers a rate much lower than the actual market rate.

For example:

• Real market rate: 1 GBP = 1200 NGN

• Provider’s rate: 1 GBP = 1100 NGN

That difference means your recipient loses value, even if the service advertises “low fees”.

Always check the rate before you send—not just the transfer fee.

4. How to Get the Best Exchange Rate

Here are smart strategies to maximize your payout:

• Compare different providers

Not all platforms offer the same rate. Digital remittance services usually have better FX rates than banks.

• Transfer during stable market hours

Rates are often more favorable during global trading hours (Mon–Fri).

• Avoid weekend or after-hours transfers

Market pauses can lead to less favorable rates.

• Use platforms with live rate locking

Some services lock your rate instantly once you initiate the transfer.

• Monitor rate movements

Use apps or alerts to track currency trends.

Small timing adjustments can lead to bigger payouts for your loved ones.

5. Why Digital Remittance Platforms Offer Better Rates

Modern digital platforms like M’Cube Global operate with lower overhead costs and real-time FX systems.

They provide:

• Transparent, competitive exchange rates

• Lower markups

• No hidden charges

• Real-time rate refresh

This ensures your recipient receives more money for every pound you send.

6. How Poor Exchange Rates Reduce Your Transfer Value

Here’s a simple example to show the impact:

If you send £200:

• With a strong rate of 1 GBP = 1200 NGN, recipient gets £200 × 1200 = 240,000 NGN

• With a weak rate of 1 GBP = 1100 NGN, recipient gets £200 × 1100 = 220,000 NGN

That's a 20,000 NGN difference—caused solely by the exchange rate.

This is why understanding FX is essential.

7. Why Regulated Platforms Protect You From FX Manipulation

FCA-regulated platforms must:

• Use fair pricing

• Show fees transparently

• Avoid misleading rate manipulation

• Provide accurate payout estimates

Regulation ensures fairness and protects consumers from abuse.

Final Thoughts

Exchange rates play a major role in the real value of your international transfer. By understanding how they work—and choosing the right time and provider—you can ensure your loved ones receive more money, faster, and safely.

Modern remittance platforms like M’Cube Global offer competitive FX rates, transparent pricing, and fast transfers—helping you get better value with every transaction.