Začínáme s investováním
How to Send Money to Your Broker Without Losing on Conversion
Key takeaways
- Most ETFs trade in euros, so CZK has to be converted — either at the broker or before sending.
- The broker offers its own exchange rate, which is usually less favorable than the market rate — so it pays to compare.
- The fee for a SWIFT transfer abroad can be 200–500 CZK per transaction — check with your bank.
- An alternative is a SEPA transfer in euros or using a payment app with a favorable conversion rate.
You send money to your broker by bank transfer — but if you have CZK and the broker works in euros, you need to account for conversion.
Why conversion arises at all
ETFs traded on European exchanges (Xetra, Euronext) are priced in euros. If your money is in CZK, someone has to exchange CZK for euros. This exchange can be done by your bank when sending, by the broker when receiving, or by you yourself through a specialist app.
Three ways to send money
- SWIFT transfer in CZK — the bank sends CZK, the broker converts at its own rate. The SWIFT fee is usually 200–500 CZK and the broker's rate has a markup. Check current terms from both your bank and broker.
- SEPA transfer in euros — if you have a euro account at your bank, you send euros directly. SEPA transfers within the EU are usually free or very cheap. You first exchange CZK for EUR — ideally through a cheap app or euro account.
- Specialist payment app — apps like Revolut or Wise offer conversion at the interbank rate (or close to it) and a low fee. You then send euros directly to your broker.
What to watch out for
Always send only from a bank account in your own name — brokers will refuse or return other deposits. Also note whether the broker accepts SEPA transfers or only SWIFT — it depends on the specific platform. How to choose a broker is discussed in how to choose a broker from the Czech Republic.
How to set up regular transfers without stress
Once you've been through the whole process once, set up a standing order — every month a fixed amount is automatically sent. More detail in the article what is a standing order for an investor.
FAQ
How much will I approximately lose on converting CZK to EUR?
It depends on the method. A standard bank charges a conversion markup of 1–3 % plus a SWIFT fee. Specialist apps are usually under 0.5 %. On a monthly investment of 5,000 CZK, the difference can be tens of CZK — for larger amounts significantly more. Check current rates.
Can I keep a euro account with my broker and not convert back to CZK?
Yes, most brokers hold cash in the currencies you send them. You can send euros and leave them as euro cash at the broker for the next purchase. You don't have to convert back to CZK every time.
What is a currency spread and how do I recognize it?
A currency spread is the difference between the market rate (interbank) and the rate at which your bank or broker exchanges money for you. If the EUR/CZK market rate is 25.00 and the bank offers 24.50, the spread is 2 %. You can find this information in the fee schedule or exchange rate list of the institution.