I am tax resident in the UK. If I buy an S&P 500 ETF which is in USD currency and listed on the LSE. So the dividends will be paid in USD and I would like it to stay in USD as cash with trading212? I asked the chat bot and it said it is not possible as the USD dividend it will automatically be converted into £ using the fx rate 0.15% unfortunately. So I will be charged an FX rate twice - once when I buy the ETF and then again on the dividend.
The dividends are received in the instrument’s currency, but they’re converted and paid in the primary currency of the account. This will not be subject to an FX fee.
Whenever you place an order with an instrument whose currency is different from the primary currency of the account, then an FX fee will be applied. For the sake of transparency, you’ll be asked to confirm any fees applied to your orders.
So, in other words, if the primary currency on the account is GBP and orders are always placed on the LSE, then no FX fees will apply. Is that right?
If the primary currency of your account is GBP and the currency of the instrument is also GBP, then there will be no need for an FX fee to be applied.