Investing term

What is FX markup?

The gap between the true (mid-market) exchange rate and the rate your broker gives you.

FX markup is the gap between the true mid-market exchange rate and the worse rate your broker actually gives you — the hidden way many brokers profit on currency conversion. Because it's baked into the exchange rate rather than shown as a line item, it's easy to miss, yet it directly raises the cost of every foreign-currency investment.

For example

The real rate is 1.10 but your broker converts at 1.094 — that 0.6% FX markup is an invisible fee on the whole amount you exchanged.

FX markup is taught hands-on in Stage 9 — Fees, Scams & Protecting Your Money.

See the lesson →

Related terms

ChargebackA consumer protection on credit-card transactions that lets you reverse fraudulent charges.Fee dragThe cumulative effect of every fee you pay on the return you actually keep.Inactivity feeA fee charged if you don't trade enough times per year.Investment scamAny pitch or scheme designed to take your money without delivering real investment services.
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