In this lesson
- compare depositing by bank transfer and by card
- work out what a deposit really costs you
- avoid the most common mistakes that make money "disappear"
Depositing money is the most boring part of trading – and yet you can lose more on it than on your first trade. Money can flow through a wide pipe for free, or through a narrow pipe with a toll booth.
Ways to deposit#
| Method | Speed | Typical cost |
|---|---|---|
| bank transfer in euros (SEPA) | within one working day, instant payment in seconds | often free or a few tens of cents |
| bank transfer in your local currency | depends on the exchange | free to a small fee |
| payment card | immediate | usually 1.5–3.5% of the amount |
Indicative ranges – the exact price list is in the Fees section of the exchange's website.
A bank transfer in euros is called SEPA. If your bank supports it as an instant payment, the money is on the exchange within seconds.
Where money gets lost#
If your money is in another currency and the exchange only accepts euros, something has to convert it:
- Your bank, when transferring – the rate is often 1–2% worse than the mid-market rate.
- A card – on top of the exchange's fee there may be the card issuer's currency conversion.
- An exchange with a local-currency account – some exchanges accept your currency directly; the conversion then happens only when you buy.
Example for a 200 € deposit:
| Route | Loss (roughly) |
|---|---|
| card with a 2.5% fee | 5 € |
| local currency converted by the bank (1.5%) | 3 € |
| transfer from a euro account, free SEPA | 0 € |
Sample numbers.
Three mistakes that make money "disappear"#
- Someone else's account. The money must come from an account in your name. The exchange returns – or blocks – a payment from a friend or partner.
- A missing reference code. The exchange shows you a code to put in the message for the recipient. Without it the exchange does not know whose money it is, and tracing it takes days.
- Wrong recipient details. Copy the exchange's account number (IBAN) straight from its app, not from an email "someone sent you".
A small test payment
For your first deposit, send a small amount. Once it arrives, you know the details and the reference code are right, and you can send the rest.
Common myths#
- "Card is faster, so why not." You may pay 2–3% for the speed – more than the fees on many trades.
- "I will send it from my partner's account, it is shared anyway." The exchange needs a payment from an account in the exchange account holder's name.
- "The reference code is optional." Without it, the money gets stuck.
Summary
- A SEPA bank transfer in euros is usually cheapest; a card is fast but usually costs 1.5–3.5%.
- Converting currencies loses 1–2% in the rate – look for the cheapest route.
- Pay from an account in your name and do not forget the reference code.
- Send a small test payment first.