The true cost of currency conversion
for EU investors
Most investors focus on trading commissions — but for anyone buying assets in a different currency, FX conversion costs can dwarf the trading fee itself. This study quantifies the all-in FX cost at IBKR, DEGIRO, Trading 212, Saxo, and Revolut using published fee schedules and live rate observations, and shows what the difference compounds to over a 20-year investment plan.
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What this study found
Data from published broker fee schedules and live rate observations, March 2026. Test pair: EUR/USD, standard retail account on each platform.
- Use IBKR as primary brokerage for any cross-currency investing.
- Pre-convert via Revolut or Wise on weekdays for smaller amounts.
- Buy the ETF share class that matches the currency you already hold.
- Batch conversions above EUR 5,000 to stay below IBKR’s minimum fee.
- Spread markups built into the quoted exchange rate.
- Flat fees that are not shown as a separate line item.
- FX churn — converting back and forth unnecessarily.
- Weekend surcharges on platforms like Revolut.
FX costs are a hidden portfolio drag
Trading commissions have fallen to near zero. FX conversion costs have not — and they now represent one of the largest variable costs for EU investors buying cross-currency assets.
This is most common for expats earning in GBP or USD while investing in EUR-denominated UCITS ETFs, investors buying LSE-listed ETF share classes in GBP or USD, and anyone holding a multi-currency portfolio across equity, bond, and commodity ETFs.
The core problem is that FX costs are rarely presented clearly. Brokers may advertise “no commission on FX” while building a margin into the exchange rate. A 0.25% FX spread on a EUR 50,000 annual investment is EUR 125 — more than most investors would accept as an explicit fee, but invisible when it is buried in the rate.
The performance loss from conversion costs: spread markups, flat fees, and repeated unnecessary conversions. This exists regardless of whether exchange rates move at all.
Currency movement changing the value of your foreign assets. EUR/USD has moved significantly over time. FX risk dwarfs drag in absolute size — but it is not something you can eliminate by choosing a cheaper broker.
How the figures were calculated
All-in FX cost figures are derived from published broker fee schedules (accessed March 2026) combined with live rate observations across multiple test conversions. The all-in cost captures two components:
- Explicit fees: flat FX handling charges, conversion commissions, or per-trade FX fees as published by the broker.
- Spread: the difference between the mid-market ECB reference rate and the rate applied at the point of conversion, measured in basis points.
- Currency pair: EUR/USD (highest volume for EU investors)
- Single transaction, not batched
- Standard retail account on each platform’s default plan
- Revolut: Standard plan, weekday within free limit
- Premium or professional tiers may show lower costs
- Figures represent the standard retail experience
- Rates can vary by pair, market conditions, and time of day
- Always verify current rates before trading
FX cost comparison: all five platforms
All-in cost as a percentage of the converted amount, EUR/USD, standard retail account. Lower is better.
Revolut = Standard plan, weekday, within free monthly limit. Saxo = Classic account. All figures approximate — see methodology above.
| Platform | All-in cost | Cost structure | Key conditions |
|---|---|---|---|
| IBKR | ~0.03% | 0.002% commission + interbank spread | Min $2 fee; interbank spread ~0.01–0.02% |
| Revolut Standard | ~0.05% | Spread only (near mid-market) | Weekday only; free up to EUR 1k/month; 1% weekend surcharge |
| Trading 212 | ~0.15% | Spread built into conversion rate | No explicit FX fee; spread varies by pair and liquidity |
| DEGIRO | ~0.27% | 0.25% explicit fee + small spread | Charged automatically on cross-currency trades; no cap |
| Saxo Classic | ~0.50% | Spread built into quoted rate | Platinum 0.35%; VIP 0.25% (requires EUR 200k+ portfolio) |
What does this actually cost in euros?
Absolute cost in euros at three common conversion amounts. The chart shows a single EUR 10,000 conversion.
Revolut = Standard plan, weekday within free limit.
| Platform | EUR 5,000 | EUR 10,000 | EUR 50,000 |
|---|---|---|---|
| IBKR | EUR 1.50 | EUR 3.00 | EUR 15.00 |
| Revolut Standard | EUR 2.50 | EUR 5.00 | EUR 25.00 |
| Trading 212 | EUR 7.50 | EUR 15.00 | EUR 75.00 |
| DEGIRO | EUR 13.50 | EUR 27.00 | EUR 135.00 |
| Saxo Classic | EUR 25.00 | EUR 50.00 | EUR 250.00 |
The compounding cost over 10 and 20 years
Model: EUR 20,000 invested per year across a currency pair (common for expats or investors buying GBP-listed ETFs from a EUR account). Excess cost vs IBKR, compounded at 7% annual gross return.
| Platform | Annual FX cost | Excess vs IBKR | Lost after 10 yr | Lost after 20 yr |
|---|---|---|---|---|
| IBKR | EUR 6 | — | — | — |
| Revolut Standard | EUR 10 | EUR 4 | ~EUR 55 | ~EUR 164 |
| Trading 212 | EUR 30 | EUR 24 | ~EUR 331 | ~EUR 989 |
| DEGIRO | EUR 54 | EUR 48 | ~EUR 662 | ~EUR 1,977 |
| Saxo Classic | EUR 100 | EUR 94 | ~EUR 1,296 | ~EUR 3,870 |
Key insight: The absolute annual cost numbers look small. But compounded over 20 years at 7% gross, a Saxo Classic investor loses nearly EUR 3,870 more than an IBKR investor on the same EUR 20,000/year plan — purely from FX conversion costs. That is the equivalent of almost two months of contributions, silently eroded.
How each platform handles FX
IBKR is the gold standard for FX efficiency among retail investors. It accesses the interbank Forex market directly and charges a transparent commission of 0.002% of trade value (minimum $2, maximum $100). The underlying spread on major pairs like EUR/USD is typically 0.01–0.02% at the interbank level. IBKR also allows you to hold multiple currencies in the same account — eliminating conversion entirely when buying ETFs denominated in a currency you already hold.
Open an IBKR accountRevolut is not a broker, but it is widely used by EU investors to convert cash before depositing into a brokerage account. The Standard (free) plan offers conversions at close to the interbank rate — up to EUR 1,000 per month on weekdays, with no explicit fee. Beyond the free limit, a 0.5% fair usage fee applies. Weekend conversions carry a 1% surcharge on all plans. The strategy of converting via Revolut on a weekday then depositing EUR into IBKR can produce among the cheapest available workflows.
Trading 212 does not charge an explicit FX fee but applies a spread of approximately 0.15% on currency conversions, built into the exchange rate at the time of the trade. Trading 212 offers multi-currency wallets, which can reduce unnecessary conversions if you actively manage the balance by depositing in the currency you need.
Open a Trading 212 accountDEGIRO applies an explicit 0.25% FX handling fee each time you buy or sell a security denominated in a foreign currency. This fee is charged automatically — you cannot avoid it by pre-holding the foreign currency, because DEGIRO operates a single-currency account model. There is no cap, and the fee applies to every trade that crosses a currency. For frequent investors or those building large positions, this adds up quickly.
Open a DEGIRO accountSaxo is a premium platform with a correspondingly premium FX cost. The Classic account applies a 0.50% spread on currency conversions — the highest of the five platforms. Platinum (0.35%) and VIP (0.25%) tiers require maintaining portfolios of EUR 200,000 or more. For most retail investors, Saxo’s FX spread alone adds a material drag on every cross-currency position.
Open a Saxo accountFive ways to minimise your FX costs
For most investors making regular cross-currency investments, switching to IBKR is the single most impactful action. The 0.002% commission model is transparent, predictable, and far cheaper than any spread-based system. IBKR’s multi-currency account also eliminates conversion when it is not necessary.
For cash conversion before depositing into any broker, Revolut Standard on a weekday within the free monthly limit, or Wise, offer near-interbank rates. Convert the cash externally, then deposit the target currency directly — avoiding the broker’s FX entirely.
UCITS ETFs often trade in multiple share classes — the same fund may be listed in EUR on Euronext, GBP on the LSE, and USD on another exchange. If you hold EUR, buy the EUR-listed share class. The trading currency does not affect underlying returns but eliminates unnecessary conversion friction.
Where IBKR’s minimum fee ($2) applies, small conversions become proportionally expensive. A EUR 200 conversion at the $2 minimum costs 1% effective drag — far above the quoted 0.002%. Batch monthly contributions into a single larger conversion to stay above EUR 5,000 and in the efficient fee range.
Revolut applies a 1% weekend surcharge on FX conversions on Standard and Plus plans. This alone makes Revolut more expensive than DEGIRO on weekends. Always convert on a weekday and hold the converted balance until your trade is ready.
Every round trip — converting EUR to USD then back again — roughly doubles your spread cost. This happens when investors switch brokers, change ETF tickers, or keep restructuring their portfolio. One stable setup beats constant re-optimisation.
Cut your FX costs today
IBKR offers the lowest all-in FX conversion cost of any mainstream broker available to EU investors. DEGIRO and Trading 212 are solid for EUR-denominated ETF portfolios where cross-currency conversion is infrequent. For Saxo users, consider whether the platform’s other features justify the FX premium at the Classic tier.
Go deeper
Frequently asked questions
What is a currency conversion spread?
A currency conversion spread is the difference between the mid-market exchange rate (the true rate) and the rate your broker actually applies when converting your money. If the mid-market EUR/USD rate is 1.0850 and your broker converts at 1.0750, that 0.009 difference is the spread — effectively a fee taken on every conversion. Spreads are rarely disclosed upfront as a percentage, which makes them easy to overlook.
Does IBKR really charge only 0.03% for FX conversion?
IBKR charges a commission of 0.002% of trade value (minimum $2, maximum $100) on Forex conversions, on top of the interbank spread it accesses. For typical retail conversion amounts (EUR 5,000 to EUR 50,000), the all-in cost including the market spread is generally between 0.02% and 0.04%. This makes IBKR significantly cheaper than most retail brokers for currency conversion.
How does DEGIRO’s FX fee work?
DEGIRO applies an explicit FX handling fee of 0.25% on the converted amount whenever you buy a security denominated in a currency different from your account base currency. This is charged automatically and is in addition to the underlying exchange spread. There is no cap — a EUR 50,000 conversion costs EUR 125 in FX fees alone at DEGIRO.
Is Revolut a good option for FX before investing?
Revolut can be highly competitive for converting cash before transferring to a broker — particularly on weekdays within the monthly free conversion limit of your plan. Revolut Standard offers free conversions up to EUR 1,000 per month at the interbank rate; beyond that a 0.5% fair usage fee applies. Weekend conversions carry a 1% surcharge on all plans. Converting via Revolut on a weekday then depositing into IBKR is one of the cheapest available approaches.
What is the cheapest way to convert currency as an EU investor?
For amounts up to a few thousand euros, Revolut on weekdays within the free monthly limit or Wise are the cheapest options, offering near-interbank rates. For larger conversions or regular investing, IBKR’s Forex conversion at 0.002% commission is typically the best all-in rate. Pairing Revolut or Wise for cash conversion with IBKR as the brokerage platform covers both cases at near-minimum cost.
Does the trading currency of an ETF affect my returns?
No — the currency in which a UCITS ETF trades on an exchange does not change your underlying returns. A EUR-listed and a GBP-listed share class of the same UCITS ETF hold identical assets. Buying the share class in the currency you already hold simply avoids the need to convert at the broker level, reducing FX drag without changing the investment itself.