The value one will receive when 10000 eur usd is converted relies on the converting provider and whether commission or hidden charges are imposed. Even though the mid-market exchange rate may appear to represent a single value, banks carry the transaction fees that reduce the value received.
Banks and traditional exchange outlets usually charge a 2%–4% margin on the mid-market rate. At a real exchange rate of 1.035, the effective rate received after commission can drop to 1.014, converting 10000 eur to approximately 10,140 USD rather than 10,350 USD. Fixed transaction charges of 10 to 50 USD are also charged by some banks, which affect the final amount exchanged.
Online money transfer platforms like Wise, Revolut, and PayPal have different business models. Wise, for example, has a percentage-based fee, typically 0.4%–0.6% to transfer EUR to USD, so a transfer of 10000 eur would cost anything between 40 and 60 USD in charges. PayPal is a 3%–4% margin-based exchange rate, and it becomes less competitive when there are large transfers.
Overseas ATMs and credit card corporations often sneak currency conversion charges in without disclosing the charges at the time of a transaction. There are foreign transaction charges of 1% to 3% imposed by some credit card firms, which can mean an additional 100 to 300 USD as charges for withdrawals or disbursals in USD. ATM withdrawals themselves are sometimes followed by a flat fee and a 3 to 10 USD per withdrawal conversion charge.
Cross-border money transfers have intermediary banks that incur charges as processing fees. It is common for a SEPA transfer inside the EU to be free or less than 10 EUR, yet cross-border money transfer outside the EU through SWIFT may cost between 15 and 50 USD.
Additional fees are also incurred by some banks if the recipient wants the entire amount transferred without deductions.
For larger currency exchange transactions, commission-free services like forex brokers or professional money transfer bodies might offer more favorable exchange rates than banks. A few brokers allow clients to lock in the exchange rate in advance for subsequent money transfers to control the risk of volatility. Bank business accounts usually get favorable rates with reduced fees, offering a higher net conversion rate.
To cut the cost of the commission, the providers have to be compared before they exchange 10000 eur usd. There are providers who offer a commission-free exchange but adjust their fees in such a manner that there is a loss and therefore overall the cost is more. The mid-market rate and the difference between the exchanged rate and the potential charges are verified in order to estimate the best value.