The fee on your statement isn't the fee you paid.
At least not all of it.
Every time your company converts money, say euros to francs or francs to dollars, there are usually two costs. One is printed on the statement. The other is built into the exchange rate, and most founders never look at it.
This article shows you how to find both, using nothing but your own statement and a reference rate. Then it shows you how to make fewer conversions in the first place.
The two costs of every conversion
Cost 1: The visible fee
This is the line item: "FX fee CHF 15", "Payment fee CHF 10", and so on. Easy to see, easy to compare.
Cost 2: The spread (the one you don't see)
The mid-market rate is the midpoint between the buy and sell prices for a currency at a given moment. It's the "real" rate you see on financial data sites.
The rate your provider gives you is usually worse than mid-market. The gap is the spread or markup. It isn't listed as a fee because it's baked into the rate.
On a small payment, the spread looks like nothing. Applied to every franc and euro, every month, it often adds up to more than the visible fees.
The 3-step method to find your real cost
All you need is one conversion from your statement.
Step 1: Write down what actually happened
From the statement, note:
- Amount sent (e.g. CHF debited),
- Amount received (e.g. EUR credited to the supplier),
- Visible fees,
- Date and time of the conversion.
Step 2: Find the mid-market rate for that moment
Look up the mid-market rate for that currency pair on that date, as close to the time as you can get. For EUR, the European Central Bank publishes daily euro reference rates. These are a useful sanity check, but they're published once a day, so they're a reference point, not the exact market rate at your minute.
Step 3: Do the maths
- Cost at mid-market = amount × mid-market rate
- Spread cost = what you actually paid − cost at mid-market
- Total cost = spread cost + visible fees
- Total cost % = total cost ÷ cost at mid-market
A worked example (hypothetical numbers)
All numbers here are made up to show the method. They aren't real rates or any provider's actual pricing.
Your GmbH pays a EUR 10,000 invoice from a CHF account.
- Assume the mid-market rate at that moment: 1 EUR = 0.9300 CHF
- Cost at mid-market: 10,000 × 0.9300 = CHF 9,300.00
- Your account was debited: CHF 9,420.00
- Visible fee on the statement: CHF 15.00
Now the maths:
- Spread cost: 9,420 − 9,300 = CHF 120.00
- Total cost: 120 + 15 = CHF 135.00
- Total cost %: 135 ÷ 9,300 ≈ 1.45%
The statement said "CHF 15 fee". The real cost was CHF 135, nine times as much.
Do that once a month and it's CHF 1,620 a year on one supplier. Add customers, tools and contractors in other currencies, and you can see why the number deserves ten minutes of your time.
Where the hidden conversions hide
You may be converting money without ever clicking "convert".
- Incoming payments credited in the wrong currency. A client pays euros, and your account only holds CHF, so it's converted automatically.
- Outgoing payments from the wrong balance. You pay a EUR invoice from a CHF account.
- Card payments abroad, or in foreign currency online (software subscriptions in USD, for example).
- Round trips. Euros come in, get converted to CHF, then a week later get converted back to euros for a supplier.
The round-trip trap (hypothetical)
Suppose each conversion costs you 1% all-in. EUR 5,000 comes in from a client and is converted to CHF. Then you pay a EUR 5,000 supplier invoice and convert back. You've lost roughly 2%, about EUR 100, to move euros back to euros.
For the payment side of this, see How to Pay EU Suppliers from a Swiss GmbH (SEPA vs SWIFT).
How to cut FX costs (in order of impact)
1. Don't convert what you don't need to
The cheapest conversion is the one you don't make. If your company earns and spends a currency, hold an account in it:
- EUR revenue from EU clients → pay EU suppliers from the EUR balance.
- USD revenue from US clients → pay USD tools and contractors from the USD balance.
This is sometimes called a natural hedge: your income and costs in the same currency offset each other.
2. Invoice in the right currency, into the right account
Give EU clients your EUR account details and US clients your USD details. That way the money arrives in the currency it was sent in.
3. Convert on purpose, not by default
Convert only the surplus you actually need in CHF (salaries, rent, taxes), on a day you choose, in one go rather than in dozens of small automatic conversions.
4. See the price before you send
Use a provider that shows you the fee before you confirm a payment. If you can't see the rate and fee up front, you can't make a decision. You just find out later.
5. Measure once a quarter
Run the 3-step method on a few conversions every quarter. If the total cost % surprises you, that's your signal to change something.
What not to do
- Don't try to time the market. Saving a fraction of a percent on the spread is worth more than guessing where EUR/CHF goes next week.
- Don't assume "no fee" means free. A provider can advertise no fees and still use a wide spread.
- Don't compare providers on visible fees alone. Compare on total cost for the same transaction.
Bottom line
You can't cut a cost you've never measured.
Measure one conversion this week. Then hold the currencies you earn and spend, and convert the rest deliberately.
FAQ
What is the FX spread?
The difference between the mid-market exchange rate and the rate a provider gives you. It's a cost even when no "fee" is shown.
What is the mid-market rate?
The midpoint between the buy and sell prices of a currency pair at a given moment, commonly used as the benchmark for comparing exchange rates.
How do I calculate the real cost of a currency conversion?
Multiply the amount by the mid-market rate at the time, subtract that from what you actually paid, then add any visible fees. Divide by the mid-market cost to get a percentage.
Should a Swiss company hold EUR and USD accounts?
If you regularly earn and spend in a currency, holding it usually means fewer conversions. If you only occasionally pay in it, converting when needed may be simpler.
Does Firma charge for currency conversion?
Firma converts at the Reuters rate, and the fee is shown before you send a payment, so you can check the total cost before you confirm.
Hold the currencies you actually use
Firma gives your company dedicated accounts in USD, EUR, CHF, GBP, CAD, MXN and BRL, all in the company's name. Customers pay into the currency they use, you pay suppliers from the matching balance, and conversions use the Reuters rate, with the fee shown before every payment. Money in is free. Plus is Fr. 499 a month with 25 bps on outgoing payments. Platform is Fr. 1'000 a month with 20 bps.
More reading: 7 Money Mistakes Swiss Founders Make in Year One, How to Open a Swiss Business Account in Days, Not Weeks, The QR-Bill, Explained for Busy Founders, Forward a Bill, Click Approve: Accounts Payable on Autopilot and How a Swiss Company Can Receive USDC (and What to Do Next).
This article is general information, not legal, tax, or investment advice. Talk to a qualified adviser about your situation.
Firma is a regulated financial technology company, not a bank. Banking services are provided through banking partners. Balances are digital stablecoin tokens, not bank deposits, and are not covered by esisuisse.
Sources: European Central Bank, euro foreign exchange reference rates; Firma pricing.
