Currency conversion (FX)
Every time you pay or transfer in a currency you don't hold on your account, a conversion happens — usually at a cost.
Definition
Exchanging one currency for another at some rate.
How it works in practice
The cost of conversion is the FX fee/markup plus the spread added to the rate. The closer to the mid-market rate, the cheaper it is.
Why it affects your choice
If you pay and transfer in foreign currencies often, the FX cost can be the most important factor — different products charge it differently.
Watch out
"No commission" does not mean "free" — the cost can be hidden in the spread.
WTP Finance is for information only; we do not give financial advice.