Investing term

What is FX fee?

The markup applied when your broker converts your home currency to the currency of a foreign stock.

An FX fee is the markup your broker charges to convert your home currency into the currency of a foreign investment. It's often buried and easy to overlook, but on international trades it can dwarf the headline commission. Repeated currency conversions — buying and later selling a foreign stock — mean you pay it more than once.

For example

Buying a US stock with euros, a 0.5% FX fee quietly adds €5 to every €1,000 converted — on top of any trading commission.

FX fee is taught hands-on in Stage 7 — Brokers, Accounts & Getting Started.

See the lesson →

Related terms

Account statementThe monthly or quarterly document summarising your account activity, balances, and realized gains.BrokerThe licensed firm you go through to buy and sell investments on an exchange.Brokerage accountThe account you open at a broker to hold your investments.CommissionThe per-trade fee some brokers charge to execute an order.
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