There is always some loss when exchanging currencies. You can minimise it quite easily. Let us look at how the process works, what to watch out for, and whether using Revolut makes sense.
Currency conversion fees at XTB
XTB lets you hold your trading account in several currencies, for example GBP, USD or EUR. If you deposit money in a different currency than your account’s base currency, XTB performs an automatic conversion, which results in a loss on the rate.
XTB uses its own FX rate that typically deviates from the mid-market rate by about 0.5%. In other words, if you fund a USD or EUR account with pounds, XTB will convert them with no extra fee, but the rate is less favourable.
It is usually better to set the base currency to the one you actually trade in. If you plan to trade US stocks or ETFs priced in US dollars, it makes sense to hold the account in USD and deposit USD. If you do not, you will face repeated conversions, especially when the trading currency of your instruments (USD, EUR) differs from your account currency (typically GBP).
You can now open multiple currency sub-accounts in the XTB app and trade in several currencies. Having both a euro and a US dollar account is ideal. You can still deposit GBP and convert them once inside XTB for a 0.5% conversion fee, which is likely better than the rate at most high street banks, and you do not need to do anything else. This way you avoid repeated conversions and you will not be losing meaningful amounts over time.
An example of costly repeated conversions
Take an investor with a trading account in pounds who actively buys and sells US shares. These shares are priced in US dollars. With each purchase XTB converts pounds to dollars at its rate. When the shares are sold and the proceeds are converted back to a GBP account, XTB converts again at a less favourable rate. If the investor makes frequent trades in US stocks, these repeated conversions can reduce total returns.
Losses also arise if you open a USD-based account but fund it in pounds. XTB will perform a one-off conversion from GBP to USD using its rate, causing an initial loss on the deposit. Once the funds sit in USD, further trading in USD instruments is not subject to additional conversions by XTB. In this scenario it is best to fund the USD account directly in dollars to avoid the initial conversion. In my view most high street banks will not give you a better overall rate than XTB’s 0.5% conversion, so sending GBP and converting within XTB is still relatively competitive.
Use the XTB promo code when registering your account to get benefits directly from us.
How to fund XTB via Revolut
Revolut is popular for currency exchange because the spread is tight. On weekdays it offers the interbank rate with no markup up to a monthly allowance of around £830 on the free plan at the time of writing.
If you want to send dollars to XTB, you can top up Revolut in pounds, exchange to USD, then make a bank transfer to your USD account at XTB. In Revolut choose Payments, then Bank transfer, and enter the bank details XTB provides for deposits in that currency. Funds usually arrive the same business day. It is very important that the transfer currency matches your base currency at XTB, otherwise XTB will convert again and you will not save anything. Always check that you have the right currency account active in Revolut. In some cases you need to enable a currency such as USD manually.
Is it worth it?
Is it cheaper to go via Revolut, or should you simply send pounds and let XTB convert?
If you exchange in Revolut on a weekday and stay within your free monthly allowance, you get a rate close to the mid-market rate, typically around 0.5% better than XTB’s. On a £350 exchange that is roughly £1.75 saved. Revolut currently charges $4.79 for a USD bank transfer to XTB, which can offset most or all of that benefit on small transfers.
If you exchange at the weekend, Revolut adds a markup of about 0.5%, so the advantage largely disappears. For larger amounts on the free plan, Revolut may apply an additional exchange fee once you exceed your monthly allowance, often around 0.5% to 1% on the portion above the limit.
Also consider the transfer fee charged by Revolut itself. SEPA transfers in euros are usually free. USD transfers are subject to a $4.79 fee at the time of writing.
Fees can change. Always check the current pricing on Revolut’s website or in the app, where the exact fee is shown before you confirm the transfer.
Be aware that incoming USD transfers to the recipient’s bank account at XTB can sometimes incur additional fees charged by correspondent banks. When I sent a payment from Revolut to XTB I was not charged any extra fees. Your experience may differ and fees can change without advance notice. You can ask XTB or Revolut support, although they may not always be able to confirm the exact fees in advance.
Beyond FX conversion, XTB charges other fees, which are listed on its website and also in our review.
How to send euros or dollars from Revolut to XTB
In the Revolut app tap “Payments”, then “Bank”, and add XTB’s bank account details, which you find in the mobile app or after logging in on the XTB website. XTB will then appear among your payees. Select it, enter the amount, and put your reference number in the “Reference” field. You can find this variable symbol in the XTB app or on the website after you log in. Send the payment and it will usually be credited the same working day, often within about an hour for EUR. USD transfers can take longer.
Euro payments are free. USD payments cost $4.79.
How much do you usually invest?
In practice it depends on how often and how much you exchange. For smaller, one-off deposits the difference may be just a few pounds, which may not be worth the time needed to set up and route payments through Revolut.
If you deposit larger sums or plan to repeat deposits regularly, optimising FX with Revolut can pay off. In that case consider switching to a paid Revolut plan such as Plus, Premium or Metal. These plans have a monthly cost but offer higher or unlimited allowances and better terms for larger exchanges that would otherwise exceed the free plan’s limit.
This can help you save on both fees and the exchange rate, especially outside normal market hours. It can also make sense if you already use Revolut for other purposes and would pay for a higher plan anyway.
Summary
Funding XTB via Revolut can make sense if you deposit larger amounts and have at least Revolut Plus, which adds a monthly cost. The benefit can disappear if you exchange at the weekend or exceed the free monthly allowance. On Plus, that allowance is around £2,500 per month in this example. For a one-off large deposit you can upgrade to a paid Revolut plan for a month and then cancel it to avoid ongoing charges.