Introducing multi-currency support to Trading 212 Invest

Hey, @trade :wave:

For the time being, the base currency can’t be changed, but if this feature is implemented in the future, I’ll let you know.

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However, Interactive Investor have an outrageous fx fee of 1.5%. This is ten times the rate of 0.15% that Trading 212 propose to charge.

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agree the ii fx fees are high but at least once you’ve converted some money you can hold it in the other currency and they have a SIPP product. It would be great if T212 had a SIPP and allowed you to hold multiple currencies within the account

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And it would be possible to have fractional shares on it? :crazy_face: (just see the HMRC “view” about fractional shares inside ISA, if one consider the Telegraph’s article as valid):

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Excellent addition!

I personally don’t think I’m going to use it, as converting GBP to EUR/USD via other services such as Wise is still more expensive than using T212’s service with 0.15% fee.

But for those who already have other currencies laying around, this is great news!

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The T212 0.15% FX fee is very competitive comparing even with the currency brokers, like Wise and others alike. And T212 leaves the other brokers and banks, thousands of miles away. Congrats. T212!

Let me see, :thinking:, next I want mutual funds (UK and EU-based). It would disrupt even more the competition. :smiley:

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With you on that, but it’s already a fairly saturated market and would require 212 to charge a platform fee on them. It would be difficult to grow to scale imo to break even / become profitable. I’m not sure if IB support it, Fidelity do, but you would then be stuck with a minimum platform fee that is not very competitive.

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In Portugal, there are some fund supermarkets with zero fees. They take a % of the fund annual fees.

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Ooh now that’s interesting - although what share classes are offered in Portugal @RLX ?

In the UK it varies but normally you have let’s say:

Class A(or similar) - highest AMC for small investors or advisors say 1.5-2% typically and the advisors take a cut.

Class B(or similar) - high net worth individuals can invest directly with the AMC to get a discounted AMC - say 0.75%. Fund platforms such as Hargreaves and Fidelity use their AUM/scale to offer this class to retail investors as well.

Class C(or similar) - a zero management fee class where fees are negotiated separately.

Now if what you say in Portugal you have zero platform fees, and access to Class B shares, then that is excellent. If it is zero platform fees, but Class A shares, then not so much.

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Each asset management firm has its own Classes categorization, e.g. “R” and “I” for retail and institutional investors respectively. Or for retail “A”, “B”, “C”, “E” and institutional “I”, each own characteristics, minimum amounts and maximum TER.

From the former available GB ISIN-domiciled funds, Threadneedle/Columbia Threadneedle used the “R” class and M&G used the “A” class for retail investors. Other countries ISIN-domiciled funds (from Luxembourg or Ireland mostly) have other nomenclatures for their classes.

But using your classes examples, I would say that the fund supermarkets would use the Class “A”, with 1.5-2% TER (for equity funds, as other asset classes could have lower TER, 0.01-1%), they take a cut from that annual fee, as distribution fees. And they could also have incentives to market some funds if they have goals that could provide them higher distribution fees %.

An example of a former GB fund available to us before the Brexit (GB funds are now not available to EU investors, mostly the asset management firms have created EU versions, domiciled for example in Luxembourg):

But this, is now a huge off-topic. :wink:

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While this is awsome news…

When reading small print:

What happens to proceeds from dividends and other corporate actions?

Dividend payments will continue to get credited in your primary currency. Dividend payments will remain exempt from the FX fee.

It seems we will still not have benefit as dividends will have to be again converted back to USD/GBP/EUR , so we end up paying 0.15% from dividend to reinvest in same company.

Can you explain why this choice in design?

Thanks

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It is our business decision to credit the dividend payments in your account’s primary currency for the time being. However, if this changes in the future, I will update the thread accordingly :pray:

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What do you mean by fund supermarket?

“Fund supermarket” is a classification of financial institutions that provide mutual/investment funds to investors as opposite to investors buying the funds directly from the asset management firms.

Examples PT: Banco Best; ActivoBank; Banco BiG.

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Hi

Is there an ETA for this feature to be released?

If I currently hold stocks in a different currency, when it’s time to sell them; will I get the return in my primary currency or can I choose to have the returns in the currency of the stock being sold?

Thanks

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Hey, @Slinxy :wave:

Multi-currency Invest accounts will become live at the beginning of August.

Yes, you will be able to select the currency when placing each order.

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Awesome news, well done team!

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Will this be available for ISA accounts or just investing accounts?

The latest emails says you will gradually roll this out. How will users know if they have this enabled e.g. will we get a notification or will we need to keep checking.

Thanks

Not elligible for ISAs.

Yes, you’ll receive a notification :v:

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