Banks vs Currency Brokers for Property Transfers

The interbank rate — sometimes called the mid-market rate — is the rate banks trade with each other. It is the most accurate measure of a currency's value at any moment. When you transfer money through a bank, you never receive this rate. Instead, the bank adds its margin, typically 2–4% for personal customers. That margin is rarely disclosed upfront and is where the vast majority of the real cost hides.

Currency brokers operate differently. They specialise exclusively in foreign exchange and compete on rate quality. Their margins are typically 0.3–0.5% above the interbank rate, and most charge no fee at all on transfers over €10,000. The practical difference is significant: on a €250,000 transfer, a bank charging a 2% margin costs you roughly €5,000 in hidden fees, while a broker at 0.5% costs around €1,250. That is a saving of €3,750 on a single transfer — more than many buyers pay in legal fees.

The table above uses realistic estimates based on average bank spreads of 2% and broker spreads of 0.5%, including typical transfer fees. Individual costs vary by provider, currency pair, and transfer timing — but the pattern is consistent: the larger the transfer, the bigger the saving.

For property buyers, these savings appear at every stage. A reservation deposit of €20,000–€50,000 might save €300–€750 with a broker. The completion payment — often €200,000–€400,000 — is where the real difference shows. Even ongoing transfers for tax payments and community fees add up over time.

Both options are safe for large transfers when properly regulated. Banks offer deposit insurance and heavy supervision. Regulated brokers — those authorised by the FCA, ESMA, or equivalent bodies — must segregate client funds, meaning your money is protected even if the broker faces difficulties. The idea that brokers are riskier than banks is a common misconception: regulated brokers handle billions in property transfers annually and follow the same anti-money laundering requirements as banks.

For speed, brokers often have the edge. Most large transfers arrive within 1–3 business days, compared to 3–5 days for SEPA or 5–7 days for SWIFT through banks. For time-sensitive completions, this can make a real difference. See our buying process guide for the full timeline.