GLOSSARY TERM
FX Fee (Currency Conversion Fee)
An FX fee is the cost you pay when money is converted from one currency to another during investing.
What does this mean in practice?
This fee often appears when you invest in assets priced in a different currency than your own. For example, you may deposit euros but buy an ETF priced in US dollars. The broker or platform converts the money and may charge a currency conversion fee for that. Some platforms show this cost clearly, while others include it in the exchange rate.
Example
You invest €1,000 into a US-listed investment and your broker charges a 0.25% FX fee. That means about €2.50 is lost to the currency conversion before the money is fully invested.
Why it matters
FX fees can quietly reduce returns, especially if you invest regularly in another currency. Over time, even small conversion costs can add up, so they are worth checking when comparing brokers and platforms.
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