FX conversion fee

When I buy and sell shares the money that are taken for FX conversion fee aren’t calculated in the total return. So basically they disappear and I don’t know how much in total I spend for FX fee only.
Could you add this as a feature similar like FX impact?

3 Likes

Yes I know about that but the FX fee is not deducted from the total return in the history

1 Like

the ‘FX fee’ is baked in to the rate, so there is no deduction to the return.

1 Like

Your FX fee is 0.15% on the buy and 0.15% on the sale.

As others have said it should be baked in to the value of shares purchased and sold so the net return should be correct.

Do you have an example when it differs?

Column P of the csv download clearly shows the fx fee for each trade. I can see I have had 44 such fees since they were introduced, average £0.078, and total £3.44.

The csv contains all the information that I need to calculate anything I want to know about my returns.

I am still not sure whether this fee can be taken as an allowable cost when figuring taxable gains, as a broker commission would be, under HMRC rules. Because it is now designated as a “currency conversion fee”, rather than “fx transaction cost”, it may in fact be deductible.

HMRC is clear that costs arsing making currency exchange are not deductible, but broker commissions/fees are deductible. I have tried to find a definitive answer in respect of this Trading 212 currency conversion fee, but have asked several people (UK tax accountants and HMRC chat agents) who should know and have heard different things.

average

Its probably just the fact that its still early doors, but at first I read that as savage.

This post was flagged by the community and is temporarily hidden.

1 Like

Not sure why the system flagged my post above as it’s not violating any of the community rules.

1 Like

Surely any returns should capture “all in” costs?

Prior to the introduction of the fx fee, my Total Returns was my net profit excluding dividends. Post introduction of fx fee, the Total Return figure is much higher than my calculated profit in my spreadsheet, because it seems to be including the fx fee as a return. Returns shouldn’t include costs.

The fee isn’t ‘baked into’ the fx rate from what I can see.

1 Like

Okay, I didn’t know re: accounting practices including costs.

It would be helpful if Trading212 could add a separate Total Return figure (could be called Total Profit) in the History tab that shows the profit excluding the fx charges.

Cc: @Bogi.H

1 Like

That seems to be the issue… the fx fee needs to be deducted from the total return otherwise is inaccurate

2 Likes

Yes, exactly. One of the team got in touch and I’ve provided screenshots and explained the issue, so fingers crossed.

1 Like

Hey,

We are looking into it, I will keep you posted.

2 Likes

Hello. I want to clarify something… I know the exchange fee is baked in the exchange rate, but the interface is showing a higher tax. For example for a 3.6€ order I got a tax of 0.01€ which of course is much higher the expected 0,15%. Is that only an interface thing?

Are you talking about the FX fee, or Tax here?

If the FX fee, have you considered it might be a rounding thing. We are talking about rounding to the nearest cent.

3.6EUR x 0.15% FX fee is 0.0054cents which rounds to 0.01Cent.

I am referring to the FX tax. I just want to confirm the actual amount is 0.054 not 0.01.

Something doesn’t sound right.

You should probably have a 0.01cent fee shown separately on your trade for the 0.15% FX fee.

I don’t think any country charges an FX tax and 0.054 works out at 1.5%, so I would query this in the app to get an answer.

Sorry I was referring to the FX fee. It is wrong for me to say tax. So it is expected to round in the UI while the actual amount is half of that right?