Exchange Fees on Bank Transfer

Hi,

I transferred 5500€ and received 6095$ instead of 6205$ according to the daily FX rate. Which means that I effectively paid a 1.75% transfer fee. My bank (Boursorama) supposedly doesn’t charge any fee, I asked them for clarifications and still waiting for their answer.

(i) Did someone experience anything similar? (ii) Do you know where the missing 100$ could be? (iii) What if I withdraw my desposit? Am I going to pay a similar fee?

Thank you for your help.

There is a high chance that your bank charged the conversion fee for it (1,75% it’s not even that bad for the average old banks).
If you live in Europe and your daily life is in Euro but invest in Dollars, I would advice you to use platform like Transferwise or Revolut to reduce or even cancel your costs in the conversion when sending money to T212, at least until they will offer multicurrency accounts (in the pipeline but with not specific ETA yet).

Hey Francesco,

Thank you for the headup. I am still waiting for clarification from their side. If they indeed charged a conversion fee on the transfer, they’ll probably also charge the repatriation of the fund (when I withdraw).

(i) I have heard that T212 sends withdrawal amounts to the first bank account that have been used. Can I choose another bank like N26?
(ii) Does it make sense to invest in DOL if I am investing in US stocks and live in Europe? In which situation would I be more likely to lose money? I am sure someone already made the calculation on the cost-opportunity of Transferwise vs Deflation of DOL stocks invested in EUR.

Thanks.

It is not very smart to fund a USD brokerage account with EUR. Why don’t you open a EUR account with Trading 212? USD transfers are usually quite expensive while bank transfers denominated in euro are free due to SEPA.

Actually it does make sense if I am planning to invest in USD. If the $ devalue against the € I would lose money even if the stock goes up.
The fees I have paid are too high though… I’ll just use transferwise next time I guess :sweat_smile:

Hi Mik

1 - If you start funding your account with another card or bank account, later on when you wanna withdraw money you can choose between the two (there are certain rules with it). In case you have trouble you can always email the team and they will help you where possible.

2 - I personally prefer to invest in local currency, I started with T212 only in December and at the moment my main portfolio is with another broker with multicurrency accounts. As soon as T212 will offer in specie transfer I will move everything here and I hope in the same time they will have also multicurrency accounts.

In your case I would stick with the USD account for now but funding it with TW or Revolut. And like me and others wait for the MC accounts.

I leave you this thread where was said that is something that will be considered in Q2, but with Corona, the new releases and everything I’m not expecting the team will have time before the end of Q3 at least.

Thank you Francesco, very insightful !