US stocks in EUR versions in Xetra like Google, Apple, Tesla, Facebook, Netflix, etc only allow trading in Full Share. Please allow fractional shares for more activity and more liquidity on those existing stocks. Thank you.
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Can you help me understand why we should use EUR version? I’m new at this, so I’m grateful for the explanation. I’m also from Europe so it would help me invest better. Thanks!
Hello.
First is so we can trade these stocks in UK and EU market hours, which is earlier than US market hours.
Another is so we’re not affected by USD exchange rate fluctuations, at least for really famous US stocks. Especially now that USD keeps on swinging so bad.
If USD is so low, even when you’re supposed to be green (gains), you will have a red (loss).
If you buy some US stocks early this week when USD is 1.7+ and late this week, it’s 1.8+, you are particularly affected. And it always happen now, probably because of Trump or US coronavirus situation.
It might not affect those who want long-term holding of stocks.
You may have misunderstood. An investment in APC on Xetra will be identically affected by USD EUR exchange rate fluctuations as investment in AAPL. Their prices of 384 euro and 460 dollars will always be in proportion to the exchange rate. You cannot make better profits by investing in one rather than the other. It would be like running 10km faster than 10000m.
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It could be right. I don’t really track much on the prices yet of these stocks in Xetra because I haven’t traded with them yet. But as I said, the main reason is to trade in EU time and not wait for US market. Also, your other comment to me about exchange rate in other post, you might also misunderstood because timing is also a factor in exchange rate. Not just the conversion rates between the two currencies.
I would only say that if you know how to time the right moment to convert your USD to local currency then you could make millions from trading currency CFD directly. Most people find such advantageous timing of currency exchange impossible to do.
So if I understand right, for example, the only reason Tesla is now available $TL0 oppose to $TSLA is because of the hours?
Yes. But the price is so high for a whole share so having Fractional shares for this and other US stocks would be great.
If you have a Revolut or Transferwise account, you will understand that you can time it accordingly to your favor. It’s not like I’m going to be changing currencies a lot. Only when I deposit and when I will leave Trading 212.
For people who work with a broker who charges a fee to convert between EUR and USD the TLO:GR version of the stock may be less costly to trade. It is the sama as with VUSA and VUSD, But since Trading 212 does not charge a fee, the only significant difference is hours, yes.
I do have Revolut and Transferwise accounts, but you must have better luck than me. If I could reliably time currency exchanges to always be in my favour then changing currencies a lot is exactly what I would want to do!
As I said, I won’t do it a lot. Only when depositing and when I want to withdraw my funds. It’s not a big charge anyway so I’m 100% on Multi-Currency account. It’s better than having currency affects me everytime I trade with US stocks using EUR. To each his/her own, I guess. You cannot force your opinions and beliefs on others. I could be right or wrong, but this is what I want and this is what I believe in so please respect it.
Will it be possilbe to add stocks from the US market to the EU currency?
Such as Royal Bank of Montreal, Bank of Canada, etc?