Multi-currency accounts vs traditional FX: cutting cross-border costs

If your business buys, sells, or pays across borders, foreign exchange is probably costing you more than you think — and most of it is invisible. The fee is rarely a line item; it is baked into the rate. Multi-currency accounts offer a different model.

The hidden cost of FX markups

Traditional bank FX typically adds a margin on top of the mid-market rate, often 1–3% per conversion, plus transfer fees. Because the markup is embedded in the exchange rate, it does not appear on an invoice — but across a year of supplier payments and customer receipts, it adds up to real money leaving the business.

How multi-currency accounts work

A multi-currency account lets you hold balances in several currencies — EUR, USD, GBP, SEK, and more — each with its own account details. You receive in a currency, hold it, and pay out in the same currency without converting. You only exchange when you choose to, ideally at a transparent rate close to mid-market.

When to hold versus convert

If you have both income and costs in a currency, holding lets you net them off and avoid converting twice. If you only ever pay out in a currency, converting in larger, planned batches usually beats lots of small ad-hoc conversions. The key is that the decision becomes yours, rather than being made automatically at whatever rate your bank applies.

What to look for

Prioritise transparent pricing (a clear rate plus a visible fee), dedicated local account details per currency, and same-day settlement. Treat any provider that will not show you the mid-market rate with caution — opacity is usually where the cost hides.

Eduvo gives European businesses dedicated IBANs across ten currencies, so you can hold, receive, and pay in local currency and convert on your terms.