Sending Euros from a Local-Currency Account

When you want to send euros from a non-euro currency account (zloty, krona, lira, etc.), the bank first converts your money into euros. This conversion is often done "automatically" and is extremely practical; but it is usually the path where the highest exchange-rate margin is applied. In this guide we compare the cost of sending euros from a local-currency account with cheaper alternatives.

The hidden cost of automatic conversion

When you say "send euros" from a local-currency account, the bank converts your local currency into euros in the background and applies its own standard rate — that is, a rate deviating from the market rate — in this conversion. Because this deviation is not shown as a separate line, it goes unnoticed; but it is quietly deducted from every amount you send. Even if the transfer fee is zero, this margin can determine the total cost. For the mechanics of the margin, see the what is a bank exchange-rate margin page.

Alternatives

• Switch to a euro account first: Convert your local currency into your euro account and send from there as euros. This lets you control the timing and rate of the conversion.
• A conscious conversion at the bank: Instead of automatic, question the offered rate and compare it with the market rate.
• Fintech providers: Some providers can offer a lower margin; compare the conditions and the "amount you receive".

To see which option is cheaper, compare the bank with the alternative using the exchange-rate margin tool; the tool shows which leaves more euros for the recipient. For the euro account decision, see the do I need to open a euro account page.

Summary

Sending euros from a local-currency account is practical but usually the path where the highest margin is applied. If you send euros regularly, switching to a euro account or using a low-margin provider can reduce the total cost. The decision should rest on a comparison made over the "euros the recipient receives".