FX Cost Checker FAQ

Answers to common questions about FX costs, spreads and how to check whether a recent FX trade looks fair or competitive.

How do I check my FX costs?

To check your FX costs, compare the exchange rate you received with a relevant market or benchmark rate from around the time of the trade. The difference between those rates can be shown as a spread and translated into a monetary cost. Alto's free FX Cost Checker is designed to make this easier using the details from a recent trade.

How do I know if my FX rate is fair?

To check whether an FX rate is fair, compare the rate you received with a relevant market or benchmark rate from around the time of the trade. The difference between the two rates can be shown as a spread and translated into a monetary cost. One trade does not show everything, but it can show whether pricing is worth reviewing.

What are hidden FX fees?

Hidden FX fees are costs included within the exchange rate rather than charged separately. A provider may not show a separate fee, but the rate offered to the client can still include a spread or margin.

How much is my bank charging me for FX?

The cost may not appear as a separate fee. In many cases, it is included in the exchange rate. To estimate the cost, compare the rate you received with a relevant market or benchmark rate from around the time of the trade.

How do I know if I am being overcharged on FX?

You need to compare the rate you received with a relevant market or benchmark rate and consider the trade size, currency pair, product type and value date. One trade does not prove the full relationship, but it can show whether the pricing is material enough to review.

Can I check the cost from a trade confirmation?

Yes. A trade confirmation usually contains much of the information needed, including the currency pair, trade amount, client rate, trade date and value date. The more accurate the timing information, the more useful the comparison is likely to be.

How do banks and brokers make money on FX?

Banks, brokers and payment providers often make money by applying a spread between the market rate and the rate offered to the client. Some providers may also charge transfer fees or other explicit charges, but in many cases the main cost is built into the exchange rate.

What is an FX spread?

An FX spread is the difference between a market or benchmark rate and the rate given to the client. The spread is one of the main ways FX providers earn revenue from currency transactions.

Can I calculate the cost of an FX trade myself?

Yes, if you know the client rate, trade amount, currency pair, trade direction, trade date, trade time and value date. You also need a relevant comparison rate from around the time of the trade. Alto's FX Cost Checker does this calculation using the details of a recent trade.

What information do I need to use the FX Cost Checker?

You usually need the currency pair, trade direction, amount bought or sold, client exchange rate, trade date, trade time and value date. For forward contracts, the value date is especially important.

Is a zero-fee FX transfer really free?

Not necessarily. A provider may charge no separate transfer fee but still earn revenue through the exchange rate. The true cost is often found by comparing the client rate with a relevant market or benchmark rate.

What is a good FX spread for a business?

There is no single answer. A competitive spread depends on the currency pair, trade size, product type, value date, market conditions and provider model. The best way to assess pricing is to analyse an actual trade and compare it with relevant provider levels.

Can I check forward contract pricing?

Yes, but forward contracts need to be assessed differently from spot trades because forward points affect the rate. A forward comparison should take account of the value date rather than comparing the forward rate directly with the spot rate.

Does one FX trade show the full picture?

One trade does not show everything about an FX relationship. Pricing may vary across currencies, products and trade sizes. However, one trade can show whether the potential cost is material enough to justify a wider review.

Is this tool really free?

Yes. Alto's FX Cost Checker is free to use. There is no charge to run a basic check on a recent FX trade, and you do not need to switch provider to use the tool.

How does Alto Markets make money?

Alto Markets may earn revenue if a client chooses to take further action and trade through one of Alto's selected FX/payment provider partners. The tool is designed to help finance teams understand whether their FX pricing is worth reviewing before they commit time to a wider process.

Do I need to switch provider to use Alto's FX Cost Checker?

No. The tool is designed to help finance teams understand a recent trade before deciding whether any further action is worthwhile. There is no requirement to switch provider.

How long does the check take?

The basic check is designed to take around 30 seconds if you have the trade details available.

Who is the tool for?

The tool is designed for finance teams, business owners and organisations that make or receive foreign currency payments and want to understand the cost included in a recent FX trade.

Is Alto FX a company?

No. alto-fx.com is a free online FX cost analysis tool operated by Alto Markets. Alto Markets is the company behind the tool.

Where can I find more information about Alto Markets?

You can visit the Alto Markets website using the Alto Markets logo link on alto-fx.com.