Currency Conversion Fee

A currency conversion fee is the charge applied when money moves between currencies inside a trading account — for example when a profit or loss realised in one currency is converted into the account's base currency, or when a deposit arrives in a currency the account is not denominated in. It is usually taken as a margin added to the prevailing exchange rate rather than a stated fee, which makes this forex conversion cost easy to overlook. Traders who deal in instruments quoted outside their base currency pay it repeatedly, on every closed position, so choosing a base currency that matches both the funding method and the pairs traded most often reduces how frequently conversion applies.