Is it natural to say "He teaches me english and in exchange I help him to improve his spanish" ?
Yo quiero decir algo asi como, "el me enseña ingles y A CAMBIO yo le ayudo con su español"

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He teaches me English and in exchange I help him to improve his Spanish

Your sentence is correct except for the capitalization.

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si! suena natural como lo escribiste. tambien pudieras decir: "He teaches me English and in exchange I help him with his Spanish"....se parece un poquitito mas a lo que traes escrito arriba en esp.

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