Investing · General financial education

FX conversion costs

FX conversion costs arise when money is converted from one currency to another: the gap between buy and sell rates (spread) and often an extra fee. Both reduce the amount you finally receive or spend.

In more detail

The mid-market rate in the news is a reference, not the rate you pay. Frequent small conversions add up. Providers and card models differ. Finmon recommends no card and no bank.

Background

Ask whether you can see the spread and the fee on the statement before you convert. This sits next to fees, access to money, shares, and ETFs. Finmon does not pick a product and does not forecast the exchange rate.

An example

The mid-market rate is 1.10. You receive 1.07 and pay 1.13, plus a flat fee. The gap is conversion cost.

A common misconception

Currency conversion is always free at the mid-market rate.

Spreads and fees are common. Mid-market is orientation, not your rate.

Source: BaFin · Einmaleins der Geldanlage. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.