Fixed and floating swap rates, and which one you actually want
Almost every argument about a swap that delivered the wrong amount comes down to one thing. The person accepted a floating quote and read it as a fixed one. The difference is worth two minutes of your time.
A floating quote is a snapshot
A floating quote shows the rate at the moment you asked. The amount that actually lands is worked out when your deposit confirms, which might be minutes later.
If the market moves in your favour in that window you receive more than the quote said. If it moves against you, you receive less. That is not a service taking extra, it is the rate having changed.
Floating quotes usually carry a better headline rate, because the route is not carrying the risk of the market moving.
A fixed quote is a commitment
A fixed quote locks the amount for a short window. If you fund inside that window, that is what you get regardless of what the market does.
You pay for that certainty. A fixed quote is normally a slightly worse headline rate than a floating one on the same pair, because the route is absorbing the risk.
Fixed quotes have tighter deposit windows, for the same reason. The longer the lock, the more risk the route is carrying.
Which to choose
If you are swapping an amount where a few percent would genuinely bother you, take fixed and fund it promptly.
If you are moving a smaller amount and want the better headline number, floating is usually fine.
Whichever you pick, fund it quickly. A slow deposit is what turns a floating quote into an unpleasant surprise, because the market has had longer to move.
Availability is not always your choice. Fixed and floating are offered per route and per pair, so on some pairs only one of them exists.
Common questions
- I received less than the quote said. What happened?
- In almost every case the quote was floating and the rate moved between the quote and your deposit confirming. Check whether the quote was labelled fixed or floating, and check how long your deposit took to confirm.
- Does the service fee change between fixed and floating?
- No. The service fee is the same either way and it is already inside the amount the quote says you will receive. What changes between fixed and floating is the rate, not the fee.
Swap pages related to this guide
Check a rate yourself
Requesting a quote costs nothing and commits you to nothing. You see the number before you decide.
Route availability, limits, timing and verification requirements vary by partner and jurisdiction. Review the live quote and the applicable route conditions before depositing.