Before You Start
- Basic familiarity with stock investing and ETF terminology
- Active investment account(s) with European brokers (e.g., Trade Republic, DEGIRO, Interactive Brokers)
- Understanding of EUR and USD currency accounts (multicurrency accounts)
- Access to a European bank that supports international transfers
Time needed: 30–60 minutes for research and setup, plus ongoing time to maintain your chosen strategy
What you'll need: European bank account, broker account(s), optional multicurrency account (e.g., Wise, Revolut)
Currency conversion fees can quietly erode your investment returns, especially when buying US stocks from Europe. In this tutorial, you'll learn actionable strategies to avoid currency conversion fees investing Europe, compare fee structures at major brokers, and get step-by-step instructions for minimizing costs. We'll use real EUR examples and focus on platforms accessible to European investors.
For a broader broker comparison, see The Best Low-Cost Brokers in Europe for ETF Investors: 2026 Guide.
Step 1: Understand How Currency Conversion Fees Work (and Why They Matter)
When you invest in US stocks from Europe, you're usually buying assets denominated in USD, but your funds are in EUR. Brokers or banks convert your euros to dollars, often adding a currency conversion fee (sometimes called a "spread" or "FX markup"). Even a 0.5% fee can add up over time, especially with regular investing or large transfers.
- Example: Investing €5,000 in Apple (AAPL) through a broker with a 1% FX fee costs you €50 upfront—money that could have been invested instead.
Why this matters: Lowering or avoiding these fees means more of your money is actually invested and compounding over time. Over years, the difference can be significant, especially if you use compound interest to your advantage.
Step 2: Compare Currency Conversion Fees Across Popular European Brokers
Let's look at how three leading brokers—Trade Republic, DEGIRO, and Interactive Brokers—handle currency conversion fees for European investors.
| Broker | FX Fee | Can Hold USD? | EUR Example: €5,000 → USD | Notes |
|---|---|---|---|---|
| Trade Republic | 1.5% markup | No | €5,000 - €75 fee = €4,925 invested | Conversion is automatic per trade |
| DEGIRO | 0.25% (manual) or 0.25% + €10 per year (auto) | Yes (with manual FX) | €5,000 - €12.50 fee = €4,987.50 invested | Manual conversion recommended for savings |
| Interactive Brokers | ~0.002% (min $2 USD) | Yes | €5,000 - ~€2 fee = ~€4,998 invested | Best for frequent/larger transfers |
Key takeaway: Interactive Brokers offers the lowest FX fees by far, but DEGIRO’s manual conversion is also reasonable. Trade Republic is convenient but expensive for FX.
Pro Tip
If you invest regularly in US stocks or ETFs, the difference in FX fees can easily exceed €100 per year—enough to pay for an extra share or two over time.
Step 3: Use a Multicurrency Account to Convert EUR to USD at the Best Rate
A multicurrency account (like Wise or Revolut) lets you convert EUR to USD at interbank rates with minimal markup (often 0.3% or less). You can then transfer USD directly to your broker, bypassing high broker FX fees entirely—if your broker allows USD deposits.
- Example: Convert €5,000 to USD at Wise at 0.3% fee = €15 cost, saving €60+ vs. Trade Republic.
How to Do It:
- Open a multicurrency account with Wise or Revolut.
- Convert your EUR to USD in the app, checking the exact rate and fee before confirming.
- Transfer the USD to your broker account (only possible with Interactive Brokers and some others; not possible with Trade Republic or DEGIRO).
Expected Outcome: You should see your broker account funded with USD, ready to invest in US stocks without additional FX fees.
Pro Tip
Check your broker’s deposit instructions carefully. Interactive Brokers provides unique USD account details for each user. If you send USD to a EUR-only broker, your money may be rejected or auto-converted at a poor rate.
Step 4: Use Manual FX Conversion (DEGIRO) to Lower Fees
DEGIRO allows you to hold multiple currencies and perform manual FX conversions. This means you can convert a lump sum from EUR to USD when rates are favorable, paying a lower fee (0.25%) compared to “auto FX” (which adds a €10 annual charge for each currency pair).
How to Do It on DEGIRO:
- Log into your DEGIRO account.
- Go to “Deposit/Withdraw” and select “Convert Currency.”
- Choose EUR → USD, enter the amount (e.g., €5,000), and review the fee (should show 0.25%).
- Confirm the conversion. Your USD balance will update, and you can now buy US stocks directly in USD.
Expected Outcome: You should see your USD balance in DEGIRO increased by the converted amount, minus the 0.25% fee.
Why this matters: Manual conversion avoids repeated FX fees and lets you wait for a good EUR/USD rate.
Step 5: Buy EUR-Denominated US ETFs When Possible
Some US-focused ETFs are listed in Europe and denominated in EUR. While the underlying assets are in USD, you buy/sell in EUR, so there’s no FX conversion on your side, and the broker doesn’t charge you a conversion fee.
- Example: iShares Core S&P 500 UCITS ETF (Acc) (ISIN: IE00B5BMR087) is EUR-denominated and tracks the S&P 500. You can buy it in EUR on European exchanges (Xetra, Euronext, etc.).
How to Buy on Trade Republic:
- Open the Trade Republic app.
- Tap “Search” and enter the ETF name or ISIN (e.g., IE00B5BMR087).
- Select the EUR-denominated version and tap “Buy.”
- Enter the amount (e.g., €1,000) and confirm.
Expected Outcome: You’ll own the ETF in EUR, with no FX conversion fee.
Pro Tip
Always check the ETF’s currency and exchange before buying. Some brokers show both EUR and USD versions—choose EUR to avoid FX fees.
Step 6: Consider Broker Choice for Ongoing FX Savings
If you regularly invest in US stocks or ETFs, your broker’s FX policy can make a huge difference. Interactive Brokers is the clear leader for low-cost currency conversion, while Trade Republic is convenient but expensive. DEGIRO is a good middle ground if you use manual conversion.
For an in-depth head-to-head, see Interactive Brokers vs. Trade Republic: Which Broker Wins for Advanced ETF Investors in 2026?
How to Switch Brokers (if needed):
If your current broker doesn’t let you hold USD or charges high FX fees, consider transferring your portfolio. See our guide: How to Transfer Your Investment Portfolio to a New European Broker Without Losing Your Mind.
Common Mistakes
- Using “auto FX” with high markups on every trade (especially at Trade Republic or DEGIRO)
- Trying to deposit USD to brokers that only accept EUR (funds may be rejected or auto-converted at poor rates)
- Buying USD-denominated ETFs on European exchanges when EUR versions exist
- Ignoring minimum FX fees (e.g., Interactive Brokers’ $2 minimum makes small conversions less efficient)
- Assuming all brokers allow multicurrency accounts—many do not!
Next Steps
- Review your broker’s FX fee policy and see if you can switch to manual conversion or a multicurrency setup
- Test a small EUR→USD transfer via Wise or Revolut if your broker supports USD deposits
- Consider switching to EUR-denominated US ETFs for simplicity
- Read How to Use Dollar-Cost Averaging with European Brokers for Stress-Free Investing to combine low FX costs with disciplined investing
- For more on low-cost brokers, see The Best Low-Cost Brokers in Europe for ETF Investors: 2026 Guide
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.