FX Fees

What are FX Fees?

FX fees (foreign exchange fees) are charges applied when converting one currency to another - usually during international payments. These fees often include both:

• Flat transaction charges (e.g., $10–$50)

• Hidden markups on the exchange rate (2–4% above the real mid-market rate)

They commonly affect international payroll, global hiring, and cross-border contractor payouts.

How FX Fees Work

FX fees typically include:

• Flat fees: Fixed per-transaction costs charged by banks or processors (e.g., $25 per wire).

• Exchange rate markups: A hidden 2–4% increase over the real mid-market rate.

Some platforms claim “no fees” but profit from these markups behind the scenes.

Example:
Paying $2,500 to a contractor with a 3.2% markup = $80 per transaction
→ That’s $960 per year lost, per contractor.

Why FX Fees Matter

FX fees quietly drain money across every international payment:

• Budget loss: Hidden fees cut into growth funds

• Talent friction: Contractors receive less than promised

• Reduced appeal: Global offers become less competitive

• Scaling pain: Costs compound as your global team grows

Platforms like SigmaRemote avoid these fees using USD wallets and stablecoin infrastructure - so your team keeps more of what you pay them.

Example Use Case

A U.S. startup pays an Argentine contractor $2,500/month.
With a 3.2% FX markup, they lose $80/month → $960/year.
By switching to a USD wallet, the full $2,500 is received with zero fees, improving satisfaction and retention.

Related Glossary Terms

• USD Wallet

• Stablecoin Payroll

• Cross-Border Compliance

• Global Payroll

Explore More

Learn how SigmaRemote eliminates FX fees →
Read our LATAM Payments Guide →
Compare us to Payoneer and Deel →