Spread cambiario

Definition

The gap between the buy and sell price a bank, broker or exchange house quotes when converting currency — a hidden cost separate from any stated commission.

Why it matters

A real, often-overlooked cost across the region for anyone converting between local currency and dollars — compare the actual spread, not just the advertised fee, before converting large amounts.

How it works in practice

Every currency counter quotes two prices: the one at which it buys from you and the higher one at which it sells to you. That difference is the counter's margin, and unlike a commission it never appears as a line item. It applies far beyond a cash exchange booth — it is embedded in card purchases abroad, in international transfers, in buying dollar-denominated assets through a local broker, and in any app that advertises "no fees" while quoting its own rate.

A concrete example

A counter buys dollars at 18.00 and sells them at 18.60. Convert 1,000 dollars to local currency and immediately back, and you end with roughly 968 dollars — around 3.2% gone, with no fee ever charged. Doing that round trip four times a year costs more than the annual management fee of most low-cost funds.

What people most often get wrong

"Zero commission" and "cheap" are not the same claim. The only fair comparison is how many units of local currency you actually end up with, all-in, from two providers on the same day. Airport counters and hotel desks tend to have the widest spreads; the spread also widens in volatile periods, exactly when people rush to convert.

Frequently asked questions

How do I see the spread if nobody publishes it?

Ask for both the buy and the sell price at the same moment and compare them. The percentage difference between the two is the round-trip cost. Any provider unwilling to quote both sides is telling you something useful.

Does the spread matter for small amounts?

Proportionally it costs the same on any amount, but in absolute terms it is trivial on a holiday budget and significant on savings. Treat it as a cost to shop around for when the amount is large or when you convert regularly.

Educational content only — not financial or tax advice. Rates, limits and tax rules change: confirm current figures with the regulator or tax authority before deciding.