Before You Start
- Basic understanding of how stock/ETF trading works in Europe
- Active account with a European broker (e.g., DEGIRO, Trade Republic, Interactive Brokers, Scalable Capital)
- Access to multicurrency fintech apps (e.g., Revolut, Wise)
- Willingness to compare fee tables and read broker documentation
Time needed: 30–45 minutes to set up and test your first low-fee transaction
What you'll need: European broker account, smartphone, Revolut or Wise account (optional but recommended)
Currency conversion fees can quietly eat into your investment returns—especially if you regularly buy US or UK-listed ETFs and stocks with euros. This deep dive will show you advanced, actionable ways to avoid currency conversion fees EU brokers often charge, using real platforms, real products, and euro-based examples. We’ll walk through practical case studies, highlight tools like Revolut and Wise, and compare in-broker FX conversion options. You’ll finish with a toolkit to minimise costs whether you invest €200 or €20,000 per month.
Step 1: Understand Where and When Currency Conversion Fees Hit
What to do: Review your broker’s fee schedule and transaction history. Identify every point where your euros are converted to another currency (e.g., USD for US stocks or GBP for UK ETFs).
Why it matters: Many brokers apply hidden markups (0.15%–1.5%) on top of spot FX rates. Over years, these can erode thousands from your returns—especially if you rebalance frequently or use savings plans.
What can go wrong: If you don’t spot the FX fees, you’ll underestimate your true costs. Some brokers only display FX fees in monthly statements, not during each trade.
| Broker | FX Fee (2026) | How Applied |
|---|---|---|
| DEGIRO | 0.25% (auto conversion); €10 + 0.02% (manual FX) | On each non-EUR trade or manual currency exchange |
| Trade Republic | 0.50% (auto conversion) | On each non-EUR trade |
| Interactive Brokers | ~0.002% (manual FX); ~0.03% (auto conversion) | Manual or auto conversion |
| Scalable Capital | 0.15% (auto conversion) | On each non-EUR trade |
Pro Tip
Always check if your broker supports holding multiple currencies. This unlocks advanced FX strategies and can drastically cut fees.
Step 2: Choose the Right Broker and Account Type
What to do: If you buy non-EUR assets regularly, favour brokers that let you hold and convert currencies manually—most notably Interactive Brokers (IBKR). For smaller portfolios or automated savings, compare FX rates and see if the savings justify switching platforms.
Why it matters: Manual FX conversion at IBKR costs as little as ~€0.20 per €10,000, versus €25–€50 for the same trade at DEGIRO or Trade Republic. Over time, these savings compound.
What can go wrong: Some brokers (e.g., Trade Republic, Scalable Capital) do not allow you to hold USD or GBP; all trades are converted automatically, so you always pay their markup. You cannot bypass this with external FX tools.
Platform instructions:
- Interactive Brokers: Go to Account Management → Transfer & Pay → Convert Currency. Enter amount and select EUR → USD or EUR → GBP. Confirm at spot rate + minimal commission.
- DEGIRO: Enable “Active” currency handling under Account Settings to allow manual FX. Then use Deposit/Withdraw → Currency Conversion.
Step 3: Leverage External FX Tools (Revolut, Wise) for Cheaper Conversions
What to do: Use apps like Revolut or Wise to convert EUR to USD or GBP at interbank rates with minimal fees. Then, transfer the foreign currency to your broker account if your broker supports multicurrency deposits (e.g., IBKR).
Why it matters: Both Revolut and Wise typically charge 0–0.4% on FX, better than most brokers. For large conversions (e.g., €10,000+), this can save €20–€100 per transaction.
What can go wrong: This only works if your broker gives you a personal USD or GBP IBAN/account number. Many brokers do not. Never send funds to a pooled account without confirmation—it may be rejected or returned minus fees.
Case Study: Buying $5,000 of Vanguard S&P 500 ETF (VOO) with IBKR
- Convert €4,600 to $5,000 in Revolut (fee: ~€9 at 0.2%)
- Send $5,000 to your IBKR USD deposit account (takes 0–1 business days)
- Buy VOO in USD—no further FX fee
Total FX cost: ~€9. If you’d used DEGIRO auto FX, cost would be ~€12.50; with Trade Republic, €25.
Pro Tip
Revolut’s FX is cheapest on weekdays and for “Standard” users up to €1,000/month. For larger amounts or weekend conversions, check Wise or IBKR direct FX.
Step 4: Use In-Broker Manual FX to Time Your Conversions
What to do: With brokers like IBKR or DEGIRO (Active setting), convert a lump sum of EUR to USD/GBP when rates are favourable, then use your foreign currency cash to invest over time.
Why it matters: By batching your conversions, you minimise the number of FX transactions and can potentially benefit from better rates. Manual FX is almost always cheaper than letting brokers convert automatically per trade.
What can go wrong: You hold currency risk: if the euro strengthens after you convert, your USD/GBP cash is worth less in euro terms. Only convert what you plan to invest soon.
Example: Lump-Sum Conversion at IBKR
- Deposit €10,000 to IBKR EUR account
- Go to Convert Currency, exchange all at once to USD (fee: ~€0.20)
- Buy US stocks/ETFs over weeks with your USD balance
You save on multiple FX fees, and lock in your preferred rate.
Step 5: If You Must Use Auto FX Brokers, Optimise Your Purchase Patterns
What to do: If your broker (like Trade Republic or Scalable Capital) only offers auto FX, reduce your transaction frequency by buying larger amounts less often, or using savings plans with commission-free trades.
Why it matters: Every auto FX conversion triggers a markup. Fewer, larger transactions mean fewer FX hits. Some brokers waive trading fees for monthly savings plans, partially offsetting FX costs.
What can go wrong: You lose some flexibility in timing the market or rebalancing. If you need to sell and buy often, FX costs can add up quickly.
- Trade Republic: Tap Portfolio → Savings Plan → Select ETF. Set up a monthly buy (min. €10). All conversions are auto, so optimise by increasing the monthly amount if possible.
- Scalable Capital: Use Prime Broker for free monthly ETF savings plans. FX markup is always 0.15% per transaction.
Pro Tip
When buying fractional shares of US ETFs, compare total FX costs with those for EUR-denominated alternatives. Sometimes, a EUR-hedged ETF is cheaper overall—even with a slightly higher TER.
Step 6: Compare EUR-Denominated Alternatives for Global Exposure
What to do: For US or UK market exposure, consider EUR-denominated ETFs listed on Xetra, Euronext, or Borsa Italiana. These track the same indices but trade in euros, eliminating FX at purchase.
Why it matters: You avoid FX fees entirely when buying and selling. Examples include:
- iShares Core S&P 500 UCITS ETF (CSPX, ISIN: IE00B5BMR087) – EUR listed on Xetra/Euronext
- Vanguard FTSE All-World UCITS ETF (VWRL, ISIN: IE00B3RBWM25) – EUR listed on Euronext
What can go wrong: These ETFs may have slightly higher ongoing charges (TER) or tracking differences. If you want to receive dividends in USD or GBP, check the currency of distribution.
For more on using fractional shares and building diversified portfolios, see How to Buy Fractional Shares of ETFs in Europe: 2026 Guide With Broker Comparisons.
Common Mistakes
- Ignoring small FX markups: Even 0.15% adds up with regular purchases—always do the math.
- Sending foreign currency to the wrong broker account: Can result in lost funds or extra fees if your broker only accepts EUR deposits.
- Over-converting: Holding large USD/GBP balances exposes you to currency risk. Convert only what you need.
- Assuming all EUR-denominated ETFs are identical: Check for synthetic replication, TER, and liquidity differences.
Next Steps
- Review your broker’s FX policy and enable manual FX if possible
- Test a small manual conversion or external FX deposit with IBKR, Revolut, or Wise
- Compare EUR and USD/GBP ETF options for your target index
- Read our guide on locking in European savings rates vs investing for broader portfolio strategies
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.