For a modelled $1,000 US-dollar-to-euro conversion, a typical bank costs about $63.95, while Interactive Brokers estimates about $2.00 before execution and withdrawal costs. The bank model combines a 3% FX markup with a $35 outgoing-wire fee. IBKR instead charges a very small percentage commission with a USD 2 equivalent minimum per order.
That is not a direct service match. A bank can convert and send to an eligible recipient in one flow. Some current IBKR agreements reviewed here restrict unrelated currency conversion, so IBKR is best used when the trade supports investing, trading or hedging inside the brokerage. The tables compare the modelled currency cost, not recipient eligibility, settlement or the delivered total.
- In this fee model, IBKR ranks below the typical bank. Its Tier I commission is 0.002%, subject to a USD 2 equivalent minimum per order.
- With a typical bank, about a 3% markup is hidden inside the rate, and a wire fee of around $35 sits on top.
- Execution matters at IBKR. Convert Currency submits a market order, so the bid/ask spread and slippage are not captured by a mid-market benchmark.
- The products do different jobs. A bank wire can pay a recipient directly; IBKR's strongest use here is exchanging currency for investing, trading or hedging inside the brokerage.
How Interactive Brokers charges
Interactive Brokers charges its Tier I spot-FX commission at 0.20 basis points, or 0.002% of trade value, with a USD 2 equivalent minimum per order. That minimum is not a permanently flat fee: the percentage overtakes it at about USD 100,000 of trade value. Convert Currency submits a market order, so the executable bid/ask spread and possible slippage sit outside the commission-only model.
At $1,000, the model estimates $2.00 before execution and withdrawal. That USD order is below IBKR's published USD 25,000 standard-order minimum, so it is an odd lot whose price is not displayed in the interbank market. A $25,000 USD order reaches the standard-size band. The site therefore shows the published commission at both amounts, not a guaranteed executable all-in quote.
You also need a funded, eligible brokerage account and a supported pair. Trade settlement does not promise that a later withdrawal reaches a bank on the same timetable. Withdrawal method fees, correspondent-bank deductions, tax, and third-party-payee approval can all affect the real outcome.
How a typical bank charges
A typical high-street bank does not show you a separate FX fee. It rolls the cost into the exchange rate and adds a wire charge on top. On a modelled transfer like US dollars to euros, the two charges look like this:
- Exchange-rate markup: about 3%, hidden inside a rate that is worse than the mid-market one. You never see it as a line item.
- Outgoing wire fee: around $35, a flat charge the bank adds for sending the money out.
These figures are a modelled estimate of a typical bank, not a quote from any one institution. Real bank prices depend on account tier, route, payment rail, correspondent banks, and recipient charges. The percentage markup grows with the amount, while the modelled wire fee stays flat. Compare the rate your bank actually offers and its complete wire-fee disclosure before deciding.
Head to head, by amount
The commission model ranks IBKR below the typical-bank baseline at both displayed amounts. That does not prove that IBKR is the cheaper delivered payment, because execution, withdrawal, and recipient costs are outside the widget. The full comparison lets you test another amount and route.
$1,000: the bank's flat fee flatters it
The widget puts IBKR at about 0.20% of the amount and the typical bank near 6.39%. In dollars, that is about $2.00 against $63.95. The IBKR row is an odd-lot commission estimate, while the bank row includes the modelled outgoing-wire fee.
$25,000: the markup takes over
At USD 25,000, the order reaches IBKR's published standard-size minimum. The model still estimates about $2.00 in commission-based cost, while the typical-bank baseline is about $783.95. For a house purchase, invoice or other beneficiary payment, use a bank or transfer provider built for the job; IBKR third-party withdrawals are subject to approval and not every payee or purpose is eligible.
Who should pick what
Check Interactive Brokers first if the large conversion supports an investment, trade or currency hedge inside the brokerage and the pair is supported. Its commission can be exceptionally low. Use the bank or a transfer provider when the purpose is paying a beneficiary. The Interactive Brokers provider page has the full breakdown.
Check your bank if you need to pay a beneficiary directly, want one institution responsible for the wire, or receive relationship pricing that differs from our baseline. Ask for the final recipient amount, not only the stated fee.
Pick a specialist transfer service if you want most of the savings without the brokerage hassle. Providers like Wise and Revolut sit between the two: cheaper than a bank, simpler than a broker. Our Wise vs Revolut comparison and our guide to cutting FX fees walk through those options.
Frequently asked questions
Is Interactive Brokers really cheaper than a bank?
IBKR's published commission is lower than the modelled bank cost shown here. The commission is 0.20 basis points with a USD 2 equivalent minimum, while the bank baseline uses a 3% markup and a $35 wire fee. Only a live executable IBKR order plus the full withdrawal path can establish the final cost for your case.
Do I need a brokerage account to use Interactive Brokers?
Yes. IBKR is a brokerage first, so you open and fund an eligible account, and the exchange should support genuine investing, trading or hedging there. Convert Currency submits a market order, and trade settlement varies by product and pair. A later withdrawal has its own processing, eligibility and banking-chain timetable, so do not interpret a spot settlement convention as a delivery promise.
Can I execute the IBKR conversion on a weekend?
Do not treat the commission row as a weekend quote. The comparison intentionally ignores weekend-specific adjustments, and an IBKR market order depends on an open market. If timing is flexible, compare the executable prices and convert on a weekday.
Are these bank figures exact?
No. The bank numbers are a modelled estimate of a typical high-street bank, built from a roughly 3% exchange-rate markup and a wire fee of around $35. Real banks vary, and your own bank may be cheaper or dearer. Interactive Brokers' pricing is taken from its published commission schedule. Always confirm the final figure on the provider's own site before you send.
Cost figures are worked out from each provider's published fee structure applied to the current mid-market reference rate, modelled estimates for typical major-currency routes. The bank figures are a modelled baseline for a typical high-street bank, not a quote from any one lender; real banks vary. Always confirm the final quote on the provider's own site before you transfer. We may earn a commission from affiliate links at no extra cost to you; this never affects rankings. Nothing here is financial advice.
Sources: Interactive Brokers spot-FX commissions (opens in a new tab), Interactive Brokers FX order sizes (opens in a new tab), Interactive Brokers Convert Currency guide (opens in a new tab), IBUK and IBLLC Client Agreement (opens in a new tab), Interactive Brokers withdrawal fees (opens in a new tab), Interactive Brokers third-party withdrawals (opens in a new tab), CFPB sending money guide (opens in a new tab). Accessed 22 August 2026.