Why the Exchanger Rate Differs from the Market Price

An exchanger's rate is always a little worse than the market rate. That is normal and explainable. The question is how much worse and what makes up the gap.

Three components

Spread. The exchanger earns on the gap between its buy and sell prices. That is its main income. An exchange also charges a spread, but there it is formed by the market through an order book and is often tighter.

Network fee. Sending your coin anywhere costs a network fee. Some services fold it into the rate; others show it separately. On cheap networks the difference is invisible; on Ethereum at peak times it can be meaningful.

Rate risk on a fixed rate. When a service guarantees a rate for the duration of your transfer, it takes on risk: the market can move against it while it waits for your funds. It charges a small premium for that.

Why the exchanger can still beat an exchange

An exchange adds a withdrawal fee, sometimes a trading fee too. The exchanger holds none of your funds. Once you add up all the costs, the exchanger sometimes comes out ahead.

How to compare honestly

Enter the pair on an exchange, add the trading fee and the withdrawal fee. Compare that total to the final amount from the exchanger. The gap is often smaller than it looks when you only compare headline rates.