Short answer: compare the effective customer conversion for each event. A broker may describe one all-in cost as a fee, spread, markup or rate adjustment. Do not add those labels together unless the tariff states that they are separate charges.
Compare the all in conversion event
Start with an exact residence, legal entity, account, currency pair, amount, product and time. Record the customer quote or order preview and then add only separate commissions, minimums and bank charges. A brand-wide percentage is not enough.
Map every conversion event
| Event | Possible conversion | Evidence to save |
|---|---|---|
| Funding | Bank or broker converts the deposit. | Bank receipt and broker ledger. |
| Purchase | Manual conversion or automatic conversion at trade. | Quote and order preview. |
| Income | Dividend or corporate action can convert under separate terms. | Cash report and corporate-action rule. |
| Sale | Proceeds may remain in instrument currency or convert. | Trade and cash statement. |
| Withdrawal | Broker or one of the banks can convert. | Withdrawal preview and bank receipts. |
Fee labels and effective cost
Use effective cost = reference value of currency received - customer value received + genuinely separate fixed charges. A percentage already embedded in the customer rate is not added again as an exchange-rate markup. Apply minimums per conversion event exactly as the tariff states.
Use an audit reference carefully
The ECB says its euro reference rates are for information and strongly discourages their use for transactions. They can support a dated audit comparison when time and currency pair are recorded; they are not an executable interbank quote or a promise of the price a retail customer should receive.
Manual and automatic conversion
Manual conversion can batch cash before trading and may use a commission with a minimum. Automatic conversion can be convenient and may use an all-in rate adjustment per trade. Compare the actual path rather than assuming one method is always cheaper.
Trade and order preview
For a reproducible check choose one order amount, capture the source cash, destination instrument currency, timestamp, reference used, customer quote, amount received, fixed minimum and separate order commission. Repeat at the same time for the second broker where possible.
Dividends and corporate actions
Do not generalise income handling. Trading 212 states that dividends are converted to the primary currency without its normal FX fee under the reviewed multi-currency terms. XTB states that its exchange-rate margin applies to relevant corporate actions. Both are dated entity and product examples rather than universal rules.
Withdrawals and banks
A withdrawal can involve no conversion, a broker conversion, a sending or intermediary bank, or the receiving bank. Record each participant separately. If sale proceeds were already converted to the withdrawal currency, do not add a fictional second broker conversion.
Multi currency accounts
Holding several cash currencies can reduce repeated conversion but adds operational and reporting work. Check which currencies can be deposited, held, used for settlement and withdrawn, plus negative-cash or margin behaviour. Base currency can be a reporting setting rather than a forced conversion instruction.
ETF listing currency and exposure
Buying an ETF line in the account currency can avoid conversion for that order. It does not remove the economic currency exposure of the fund holdings. Keep trading currency, share-class hedging and portfolio exposure separate.
Dated entity specific fee matrix
| Scope | Published method | Boundary |
|---|---|---|
| IBKR manual spot | From 0.20 basis points with USD 2 minimum at the first tier. | Manual spot schedule; auto conversion uses a disclosed 0.03% rate adjustment. |
| Trading 212 Invest | Commonly 0.15%; reviewed AU entity 0.40%. | Entity and account type must be confirmed. |
| XTB reviewed schedule | 0.5% transaction and relevant corporate-action margin. | Account cash conversion has separate timing terms. |
| DEGIRO UK schedule | AutoFX 0.25%; manual EUR 10 plus 0.25%. | Schedule effective 1 January 2026. |
| Saxo UK | 0.60% Classic, 0.40% Platinum, 0.20% VIP. | International and Swiss pages differ. |
| Freedom24 | No separate conversion commission in reviewed FAQ. | Use displayed trading-hours rate; do not call it free FX. |
Annual worked scenario
This is a hypothetical teaching example, not a live quote. An EUR account makes twelve EUR 1,000 foreign purchases, receives EUR 240-equivalent foreign dividends, then sells for EUR 12,240 equivalent and withdraws EUR after conversion.
- Tariff A: automatic 0.25% all-in adjustment on purchases, dividends and sale conversion. Cost = EUR 12,000 × 0.25% + EUR 240 × 0.25% + EUR 12,240 × 0.25% = EUR 61.20. The EUR withdrawal has no second conversion.
- Tariff B: one manual 0.02% conversion with EUR 2 minimum before purchases; dividends and sale remain in foreign currency; one manual exit conversion uses the same rule. Cost = max(EUR 2.40, EUR 2) + max(EUR 2.448, EUR 2) = EUR 4.848.
- Use: replace every assumption with the actual entity tariff and preview. Do not compare the totals until event timing and currencies match.
Red flags
- A fee and its embedded markup are added twice.
- An ECB reference is described as executable.
- Dividend and withdrawal treatment is inferred from trade conversion.
- A country or tier rate is applied globally.
- An ETF trading currency is said to remove fund currency exposure.
- The quote timestamp and minimum fee are missing.
FAQ
Should I add an FX fee and markup?
Only if the tariff identifies them as separate. Otherwise measure the all-in customer rate and add only genuinely separate charges.
Is the ECB rate the price I should receive?
No. It is an informational reference and the ECB discourages transaction use.
Is manual conversion always cheaper?
No. Minimums and amount size can make it more expensive; compare the exact event.
Does a multi-currency account eliminate FX cost?
No. It can reduce repeated conversion but funding, trading, income or withdrawal can still convert.
Sources and methodology
We compare legal entity, event, customer quote, reference time, percentage, minimum and separate third-party cost. Figures below are dated source examples rather than live quotes.
Last checked and update policy
Last checked: 15 July 2026. Recheck after an entity, conversion method, fee, minimum, income or withdrawal-policy change.
Next step
Build one annual event map and save each official tariff and preview. Continue with Broker Fees Explained without duplicating the FX line.