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- FX trading platforms with 0% commission fees still have costs for customers.
- These providers often have embedded or hidden costs that can add up to amounts comparable to fees charged by FX platforms with transparent pricing/
- At Payset, we offer transparent, tiered pricing so you know your real costs.
Some of the most popular FX trading platforms make a highly attractive promise: 0% commission fees on trading, which seemingly allows you to save money.
But in reality, these commission-free FX platforms often contain the costs within their exchange rate. These hidden FX fees mean your business won’t necessarily save money — and you may even pay more than under a transparent pricing model.
Here’s how it works, and what you should really look for when it comes to FX pricing.
The “0% Commission” Claim, Explained
What does it mean when an FX platform promises 0% commission? It means the provider has removed commission fees, but not necessarily the cost of the trade.
Typically, commission fees are stated separately from the main exchange rate and may include flat fees or percentage-based fees. So a 0% commission fee means that the service has removed some or all of those explicit charges.
But 0% commission doesn’t mean that there is no cost to you. Even without commission fees, you can still expect to pay the cost of the trade, which may be embedded or hidden in the exchange rate, spread, or markup.
In other words, your FX provider may offer you rates that are less favourable than the mid-market rate, thereby earning revenue to help cover their costs. That’s why it’s important to look closely at what you’re really paying on each FX trade.
Learn more about why finance teams miss this.
Where the Real Cost Hides: The Exchange Rate Itself
The true cost of FX transfers is often contained in your provider’s exchange rate, which takes into account several different factors. This includes:
The Real Exchange Rate
Every currency pair has a mid-market rate, which is a rate based on up-to-date currency market values and the midpoint between buy and sell prices.
You’ll see this rate when you search Google or use market tracking sites. However, during real FX trading, this rate usually serves as a reference for your provider. The rate you receive typically reflects the mid-market rate, but is slightly less favourable.
The Buy-Sell Spread
On every currency pair, your FX provider quotes both a buy and sell price. The difference between these two prices is called the spread.
This difference helps the FX provider earn revenue from currency exchanges in either direction. For you as a customer, this means each trade is executed at a less favourable rate, with costs compounding when converting in both directions.
The Margin or Markup
Finally, the margin or markup is the amount that your FX provider builds into its exchange rate compared with the underlying market rate.
This markup often acts as a substitute for other fees, allowing your FX provider to offer 0% commission. However, it’s possible that your provider charges both a markup and separate fees. They’re simply two ways of applying costs to customers.
How Much Does This Cost You?
Costs vary greatly by provider and the details of your transactions. You can calculate the real amount you’re paying for FX, but the first step is understanding the basics.
Simply put, a 0% commission fee doesn’t necessarily mean you’re saving money.
In practical terms, hidden FX fees can cost your business the same as transparent fees that look more expensive at first glance. Sometimes, hidden FX fees might cost more — or they may truly be the most cost-efficient option in some cases.
That’s why you should compare costs and find a pricing model that best suits your needs — and that’s only possible if you know how much you’re really paying.
How to Spot Your True FX Markup
Here are a few tips for determining how much you pay for FX:
- Find your provider’s FX rates: Your FX provider may list its exchange rates on its website. Look at the stated rate and compare it to the mid-market rate on other websites; the difference is the cost to you.
- Calculate from transaction amounts: If your FX service does not state exchange rates, you may be able to calculate rates from past transactions.
- Examine multiple currency pairs: Common currency pairs like EUR-USD often have the lowest exchange rates, while less common currency pairs may cost more. Make sure you compare all currency pairs that you trade or transact.
- Ask your provider directly: FX providers with transparent pricing should be able to explain their pricing structure to you.
- Look for other costs: Your FX provider may also list spreads, markups, and general service fees in its detailed fee schedule.
- Use external reviews: Sites like Trustpilot can help you get a sense for a provider’s affordability at a glance without looking into the details.
No matter how you approach it, the goal is essentially the same. It’s about finding the information you need to compare your provider’s rates to the FX market — and if necessary, choosing a new provider that meets your pricing needs.
What a Transparent FX Rate Structure Looks Like
Transparent pricing should include the following:
- Upfront exchange rates: You should be able to see the current exchange rate offered by your provider before executing any trade.
- Clearly stated costs: Your FX provider should state other costs (such as spreads, markups, transfer fees, or account fees) in its fee schedule.
- How pricing is determined: Your provider should clearly state how it determines its exchange rate from a reference rate — generally the mid-market rate — even though your rate is subject to fluctuations in the forex market.
- Tiered pricing explanations: High-volume customers can take advantage of tiered pricing offered by some platforms. Your provider’s online tools, such as Payset’s tier calculator, should make it clear whether you qualify for lower rates.
- Priser i realtid: Your provider should provide real-time or reasonably current exchange rates (and state whether this rate is locked in at trading time).
- Final costs before the transaction: Ideally, your provider should show all of the above details applied to your trade or transaction before you execute it.
Payset’s FX Pricing Model
At Payset, we provide transparent and tiered pricing. With our rate calculator og gebyrside, you’ll be able to see what rates you qualify for before you start trading.
Our goal is to reward you with reduced rates as you increase your trading volumes while also providing all our customers with affordable costs.
This model provides rates that are lower than many services that charge hidden fees while advertising no fees or “0% commission.”
FX trading is just one of our core offerings: Payset members also get multi-currency IBAN accounts and a variety of integrated business features. Send, receive, and exchange up to 38 currencies in 180+ countries with Payset.
OFTE STILLEDE SPØRGSMÅL
What is the FX exchange rate markup?
The markup or margin is the difference between the exchange rate that your FX provider offers and the mid-market exchange rate.
If there’s no commission, how is the provider making money?
FX providers can make money by increasing their markup, allowing them to collect more revenue on each trade without explicitly charging a separate commission fee.
How do I check if my business is paying hidden FX fees?
Compare the exchange rate quoted by your FX provider to the mid-market rate listed on sites like Google. If your provider’s rate is different, you may be paying hidden costs.
What if my FX provider doesn’t state their exchange rate?
If your provider does not state the exchange rate it offers, you may need to calculate it from the final trade amounts before you compare it to the mid-market rate.
What’s a fair FX margin for a business moving over €300,000 per quarter?
There’s no single FX margin or rate that fits everyone. However, companies that handle large trading volumes can take advantage of offers like Payset’s tiered FX pricing, which offer reduced fees for high-volume traders.
As of publishing (August, 2026) FX volumes of €300,000/quarter would be charged at 0.40% at Payset for a total savings of €19,200/year vs the baseline bank rate.
