Currency Exchange Fee Calculator
Uncover hidden fees in currency exchanges. Compare services, calculate true costs, and understand the real price of converting your money.
Calculate Exchange Fees
The true market rate before any markups
The hidden markup on the exchange rate
Fee Breakdown
Fixed Fee
$5.00
Transaction Fee
$15.00
Spread Cost
$20.00
Total Fees
$40.00
You Send
$1,000.00
You Receive
1,034.88
Mid-Market Rate
1.1000
Effective Rate
1.0349
Rate Markup
5.92%
Total Cost of Exchange
4.00%
Value Lost to Fees
65.12
Ideal: 1,100.00
Understanding Exchange Fees
Fixed Fees
Flat charges per transaction, regardless of amount. More impactful on smaller transfers.
Transaction Fees
Percentage-based fees on the transfer amount. Scales with transaction size.
Exchange Rate Spread
The hidden markup on the exchange rate. Often the largest cost but least visible.
The True Cost of Currency Exchange
Hidden Fees Exposed
When exchanging currency, the advertised rate is rarely what you actually get. Exchange services make money in several ways, and the biggest profits often come from fees hidden within the exchange rate itself.
A service claiming "no fees" or "0% commission" typically makes up for it by offering a less favorable exchange rate. The difference between their rate and the mid-market rate is called the "spread" — and it can cost you 3-10% of your money.
Types of Exchange Fees
- Fixed Fees: Flat charges per transaction ($5-$50)
- Transaction Fees: Percentage of amount (0.5%-3%)
- Exchange Rate Spread: Hidden markup on rate (1%-10%)
- Receiving Fees: Charges on incoming transfers
- Intermediary Bank Fees: For international wires
Exchange Rate Spread Explained
The mid-market rate (also called interbank rate) is the true exchange rate between currencies. It's the midpoint between buy and sell prices in global currency markets.
Mid-Market Rate
1 USD = 0.92 EUR
The true rate
Bank's Rate (3% spread)
1 USD = 0.89 EUR
You lose €0.03 per dollar
Airport Rate (8% spread)
1 USD = 0.85 EUR
You lose €0.07 per dollar
On a $1,000 exchange, the difference between a 3% spread and 8% spread is $50 in lost value!
Compare Exchange Services
| Service Type | Fixed Fee | % Fee | Typical Spread | Best For |
|---|---|---|---|---|
| Online Money Transfer | $0-5 | 0.5-1% | 0.2-1% | Best overall value |
| Bank Wire Transfer | $25-50 | 0-0.5% | 2-4% | Large transfers |
| Credit Card Abroad | $0 | 2-3% | 1-2% | Convenience, rewards |
| ATM Withdrawal | $3-7 | 1-3% | 1-3% | Getting local cash |
| Exchange Booth | $0 | 0% | 5-8% | Avoid if possible |
| Airport Exchange | $5-10 | 0% | 8-15% | Emergencies only |
Tips to Minimize Exchange Fees
Do This
- ✓Use online money transfer services (Wise, OFX, etc.)
- ✓Compare the total cost, not just the exchange rate
- ✓Get a no-foreign-transaction-fee credit card
- ✓Withdraw larger amounts less frequently from ATMs
- ✓Always choose to pay in local currency abroad
Avoid This
- ✗Airport currency exchanges (worst rates)
- ✗"0% commission" offers (hidden in the rate)
- ✗Dynamic Currency Conversion (DCC) at point of sale
- ✗Hotel front desk exchanges
- ✗Multiple small transactions (fixed fees add up)
What is Dynamic Currency Conversion (DCC)?
When paying abroad, merchants may offer to charge you in your home currency instead of the local currency. This seems convenient but typically adds a 3-5% markup. Always decline DCC and pay in the local currency for better rates from your bank or card issuer.
Example: €100 purchase in Paris
Pay in EUR (local)
$109 (1.5% fee)
Pay in USD (DCC)
$114 (6% fee)
Frequently Asked Questions
Why do banks charge such high fees?
Traditional banks have high operating costs and currency exchange isn't their core business. They set rates that guarantee profit without competing aggressively on price. Online-only services have lower overhead and compete on fees.
Is it cheaper to exchange before or after traveling?
Usually it's better to use local ATMs or pay by card at your destination. Exchanging cash at home typically involves worse rates. However, having some local currency for arrival (taxis, tips) is practical.
Are prepaid travel cards worth it?
Some travel cards offer good rates and no foreign transaction fees. Compare the loading fee, exchange rate spread, and ATM withdrawal fees. Cards from Revolut, Wise, and similar services often provide the best value.