What that "zero fee" transfer actually costs
Most providers advertise the upfront fee. The larger cost is usually the margin added to the exchange rate, which never appears as a line item. This works out both, and shows the arithmetic.
Why the spread is the part that matters
A provider quoting no fee and a 2% spread on €1,000 costs you more than one charging a €5 fee at the mid-market rate. The first looks free. The arithmetic above is the only way to compare them, and it is the reason "no fees" is the most reliably misleading phrase in this industry.
Check the offered rate at the moment you are about to send, not from a marketing page. Rates move, and the rate a provider advertises is not always the rate it fills at.
What this does not include
- Receiving-bank charges. Some correspondent and receiving banks deduct their own fee. Ask the recipient what actually landed and compare it against the figure above — the gap is a cost nobody quoted you.
- Card funding fees. Funding a transfer by credit card can add a percentage, and some issuers treat it as a cash advance.
- Weekend and out-of-hours markups. Several providers widen the spread when markets are closed.
This is arithmetic, not advice. It compares the cost of transfer options using figures you enter; it does not recommend a provider and is not financial advice. Confirm all rates and fees with the provider before sending.