A currency charge looks smaller as a percentage than as a cash amount. Multiply it by the amount converted, then ask how many conversions your plan actually needs.
Watch the original Finance Hub video ↗Put 0.5% into euros
A 0.5% charge on €50,000 equals €250. If both conversions are measured on a €50,000-equivalent base, two such charges total €500. That is the simplified round-trip example in the video.
Do not confuse an illustration with a transaction quote
The second charge may apply to a different balance after the first charge, exchange-rate movements or investment gains and losses. With no exchange-rate or investment change and the first fee deducted from the €50,000, the second 0.5% applies to €49,750: €248.75, for a total of €498.75.
Check the conversion rules
Look up the rate or spread used, separate commission, minimum charges and automatic conversions. Confirm whether the account holds multiple currencies and whether converting back is optional. The currency a fund trades in is not the same thing as the currency exposure of its underlying assets.
Compare the full route
Include trading and transfer costs alongside conversion charges. Tax treatment depends on your residence and circumstances; this example does not calculate it.
Sources and method
Arithmetic illustration: 0.005 × €50,000 = €250. Two equal reference bases give €500; sequential fees on a reduced balance give €498.75.