MONEY GUIDE

Best Broker for Cheapest FX in Europe (EUR → USD Investing)

Q: Is IBKR always the cheapest FX option?

Often, but not always. FX pricing and minimums can change by entity and country. The key is the multi-currency workflow and the ability to convert close to the market rate—verify current pricing before committing.

The biggest “fee” for most European investors buying USD assets is not commissions. It’s repeated currency conversion and hidden FX markups. This guide shows the lowest-friction way to convert EUR→USD and the broker that is the default best choice for cheap FX.

Educational content only. Not personalized investment advice.

FX pricing and eligibility can change by country/entity. Always verify current FX pricing and funding methods on the broker’s official site before acting.

If your goal is “convert EUR→USD with minimal leakage,” the default best answer for most European investors is a broker with multi-currency balances and an institutional-style FX workflow.

Fast decision

Want the cheapest long-run FX workflow: use IBKR and convert in planned chunks.
Blocked from US ETFs: buy EUR-denominated UCITS ETFs and avoid unnecessary USD conversions.

Cheapest FX default: IBKR → Check IBKR pricing → Read IBKR review →

Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.

Educational content only. Not personalized investment advice.

TL;DR

Cheapest FX usually beats “zero commissions.” A tiny FX markup repeated for years can dominate outcomes.
Best default for cheap EUR→USD FX: Interactive Brokers (IBKR) for most Europeans (multi-currency + low-friction conversion).
Second-order optimization: reduce conversion frequency (fewer, larger conversions) if your deposits are small.
If you are EU/UK retail and blocked from US ETFs: your “cheapest FX” plan may become “buy EUR-denominated UCITS ETFs” instead of forcing USD buys.

What “FX drag” is (and why it matters more than you think)

FX drag is the total leakage from converting currencies: markups (spread), explicit commissions, and the behavioral cost of making investing annoying. The silent killer is repeated conversions (monthly deposits) with a small markup each time.

Spread/markup: the rate you get is worse than the true market rate.
Fixed FX fees: some brokers charge a minimum per conversion, punishing small deposits.
Conversion frequency: converting 48 times per year is very different from converting 6–12 times.
Workflow friction: if funding is painful, consistency collapses (and that’s the biggest loss).

Decision framework: choose the cheapest FX setup in 3 steps

STEP 1

Decide what you’re actually buying

If you’re EU/UK retail, you may need UCITS ETFs (not US tickers). Start here: UCITS vs US ETFs.

STEP 2

Minimize conversion leakage

Prefer brokers that support multi-currency and let you convert close to the real market rate.

STEP 3

Match funding cadence to your deposit size

If you invest small amounts, fewer/larger deposits can reduce conversion friction and fixed costs.

Related (queued if not live yet): IBKR currency conversion guide · Fund IBKR from Europe.

FX reality check: where most brokers leak money

Broker / path	Best at	FX risk	Who it fits
IBKR	Multi-currency + low-friction EUR→USD conversion	Low (verify current pricing)	Most non-US investors optimizing FX + long-term workflow
EU app brokers (varies)	Simple UI	Medium–high (markups/spreads can be the hidden fee)	Convenience-first investors who accept FX leakage
Auto-FX models (varies)	“Hands-off” conversion	Medium (you may lose control of rate/timing)	People who value simplicity over optimization
UCITS in EUR (no USD conversion)	Avoiding EUR→USD conversion entirely	Low FX workflow risk (but check spreads/liquidity)	EU/UK retail investors using UCITS ETFs as the baseline

If you only change one thing: stop treating FX as a minor detail. Over decades, it behaves like an extra annual fee.

REFERENCE

EU broker fees glossary (spreads, FX markup, custody, lending)

“Commission-free” is not free. Use this glossary to decode spreads, FX costs, platform fees, and lending policies.

Open the glossary → Why fees matter →

DECISION TABLE

Cheapest FX broker (Europe): quick comparison

You’re optimizing for FX leakage over years. The real cost is repeated conversion + spread + execution mistakes.

If you are…	Best default	Why
Europe investor buying USD assets	IBKR	Multi-currency balances + controlled conversion workflow.
Small deposits / frequent buys	IBKR + batch conversions	Fewer FX events beats “tiny FX” done constantly.
Blocked from US ETFs (PRIIPs/KID)	UCITS ETFs in EUR	Cheapest FX becomes “avoid USD buys you don’t need.”

Open with IBKR → Check IBKR pricing → Read IBKR review →

Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.

Practical playbook: cheapest FX behavior (not just cheapest broker)

Pick the ETF wrapper you can actually buy (EU/UK retail often defaults to UCITS).
Choose one “core” broker that supports multi-currency and doesn’t punish conversions.
Reduce conversion frequency if deposits are small (fewer, larger conversions can reduce leakage).
Keep execution boring: recurring investing beats “timing the perfect FX day.”
Don’t optimize into complexity: the best plan is the one you execute for years.

If you want the long-run numbers behind leakage, use the studies, then pick the broker setup you can keep executing.

Study: Fees compound → Study: Cash drag → Compare brokers →

CALCULATOR

FX drag calculator

Turn FX spread/markup into a long-run cost. Useful for non-US investors buying USD assets on a schedule.

Tools

Open calculator → Read the study →

Best when: you convert currency often, your broker hides FX markup, or you invest monthly.

CLUSTER

Next steps: FX workflow

Study: FX drag Study

The hidden cost of repeated currency conversion and “small %” leakage over time.

Interactive Brokers review Brokers

Multi-currency accounts and explicit FX conversion workflow.

Broker fees glossary Learn

Translate broker pricing pages into real costs: FX, spread, commissions, tiers.

Fees really matter Learn

Why “tiny” costs compound: TER vs spread vs FX, and what to prioritize.

CLUSTER

Next steps: long-term setup

Best broker for long-term ETFs (non-US) Brokers

A long-run pick is about total drag, reliability, and a workflow you’ll stick with.

Best broker for recurring investing (Europe) Brokers

Monthly investing is a process problem: deposits, FX friction, and repeatability.

FAQ: cheapest FX broker in Europe

Why does FX matter more than commissions for many investors? +

Because FX leakage can happen every time you deposit and buy. A small markup repeated for years behaves like a recurring fee that compounds against you.

What is the simplest way to reduce FX drag if I invest monthly? +

Use a broker with low-friction conversion and consider fewer/larger deposits if your monthly amount is small. The goal is consistent investing with minimal repeated conversion leakage.

Is IBKR always the cheapest FX option? +

Often, but not “always.” FX pricing and minimums can change by entity and country. The key is the multi-currency workflow and the ability to convert close to the market rate—verify current pricing before committing.

If I’m EU/UK retail and can’t buy US ETFs, do I still need USD conversion? +

Not necessarily. Many investors use EUR-denominated UCITS ETFs that give the same exposure without needing USD conversion for each buy. Your “cheapest FX” plan can be “avoid FX workflow entirely.”

Should I try to time the “best EUR→USD day”? +

For most long-term investors, no. Consistency dominates. The practical win is reducing leakage and keeping the process repeatable, not guessing short-term currency moves.

Bottom line If you’re in Europe and you care about EUR→USD leakage, choose a multi-currency broker and keep conversions boring and repeatable.

Open with IBKR → Check IBKR pricing → See all brokers →

Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.

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Educational content only. Not personalized investment advice.

Investments can lose value and past performance does not guarantee future results. You are responsible for your own decisions and for confirming tax and legal rules in your country. Always review each broker’s current terms, FX pricing, fees, and eligibility on their official website before opening or funding an account.