You put in €1,000. Only €996.50 buys shares.
Buying a US share from Europe, your money meets a commission first.
Then it is changed into dollars, and that costs a fee too.
Then the spread, which is not on the bill at all.
In this example, 0.35% is gone before you own anything.
Do you know what your last trade really cost you?
Education, not investment advice.
Read the sheet as text
Where Your €1,000 Goes.
Buying a US share from a European account, for example.
You.
- You send your order. Buy US shares. €1,000.
Your broker.
- Commission. Set by your broker. €1.
No payment for order flow. Brokers can't be paid to route your order. EU-wide since July 2026.
Your €1,000: Commission, minus €1.
Currency exchange.
- Euros become dollars. FX fee: 0.25%. €2.50.
Your €1,000: FX fee 0.25%, minus €2.50.
Stock exchange.
Your €1,000: Buys shares, €996.50.
- Matched, then settled the next working day (T+1, US since 2024).
Depository.
- Shares held for you. Custody fee: €0 at some, a fee at others.
What you paid = commission + FX fee.
€3.50 = €1 + €2.50.
0.35% of your money is gone before you own a single share.
Not on the bill: the spread, the gap between buy and sell prices.
redstartjournal.com · Education, not investment advice · CC BY-NC-ND 4.0
