Iām ok with fees as well, I actually believe in them in order to make a business successful, the problem is not that. The problem is that a so called free service is adding fees without giving the option to avoid them for everybody.
The transfer fee I totally agree with it, if you want an instant transfer you have to pay, but there are some countries which donāt have that option without doing a swift transfer, ad that isnāt nice, because when they signed app they had the possibility and it has been removed.
This fx fee which is low and not a big deal has been introduced without giving you the option of a multicurrency account or change you base currency, and that again is not nice.
As you see I use the world āniceā because what they are doing is legal and a business choice, but isnāt nice to certain customers which would probably move away immediately if they only had the option to transfer shares (thing that is still not possible). This is one of the things I like less, because they prioritised a Social Network functionality over a Basic Broker functionality. In this way they locked people that decided to invest more on the platform and now facing a choice to pay taxes to move to a different broker or stick with a broker that doesnāt make them happy and charging them with new fees every month (Yes, because in 2021 two months have passed and two new fees have been introduced).
It appears others have received email communication about this. I havenāt received any comms as at this morning nor seen anything pop up in the Notifications tab.
@David could you please confirm - will all users receive this notification and subsequent updates via email? Thanks
Edit: I just received the email now and a notification in the app.
Will the conversion fee apply to LSE ETFs listed in foreign currencies such as USD? I know other brokers donāt charge a fee for LSE ETFs, they only charge for foreign exchanges.
@David @Team212 I share the sentiment of many other users - this is very disappointing, especially given the previous posts about the service being profitable and now both the payment cap on payment cards etc and this FX fee.
At least the payment cap has an alternative - use other means of payment. This is completely unavoidable and for someone who has the majority of their (small) portfolio in US dividend stocks, this will hurt.
Please rethink this strategy. Please decide itās not right and consider something else. I would be happy paying a nominal āmembership feeā each year to cover fees such as FX/payment processing in lieu of this horrible strategy.
Please donāt push your customers elsewhere with thisā¦
This is a shame.
In less than a year youāve added the taxation for the credit card transfer (which for non UK customers is unavoidable if they want instant money transfer) and now this new tax.
Whatās next?
Iād wager you will introduce a commission on the withdrawal before the end of 2021!
Though this is the case T212 would profit much less on say a 4% dividend stock, than someone swing trading the value of that same held value weekly.
For example Ā£1000 held with a 4% yield would be ~Ā£0.12 a year depending on how its rounded and withdrawn vs Ā£1000 swing traded weekly (assuming net 0 profit) is ~Ā£156 a year (naturally these numbers compound with time which is why % fees are irritating) and what I mean by dissuading trading on their platform
For myself I am going back on myself a little and considering leaving my long term investments with T212 and opening a USD account with Degiro
I am quite disappointed. No need to cover the reasons as they are obvious and well covered in this thread already.
ā0 comissions 0 feesā has caught my attention and brought me to trading212. I do not like the direction this is going. Not just another set of fees after the card deposit fees worrying me but the overall āfeelā I am getting is discomforting
We should at least be given the option to convert our accountās currency. Let say for those mainly trading USD stocks it would be beneficial to run the account in USD.
Yes agree, I could convert/fund my USD account the way I choose. This gives me more freedom and flexibility but yeah what can I say without my post being flagged and/or removed
So when I chose to invest for 10 years I was agreeing to be victim to any additional fees t212 decided to impose during that period? So in 10 years time my fees could potentially be HUGE. When I bought my shares I entered an agreement that would allow me to sell them at a later date without fees.
Hi
Does Fx fees apply on USD Account if I trade on US Market? Thank you
If you feel you can get a better deal elsewhere you can of course sell them now and move, fee-free.
This is capitalism, you have choice without prejudice. Vote with your feet, but be aware the grass isnāt any greener.
Iām unclear what the recent charges, including this one, are supposed to be doing for userbility? Some clarity on that would be good. As far as Iāve experienced, trading 212 has actually got consistently worse recently, with more restrictions, more charges and more downtime. At least weāve got a month for the market to go green again and hopefully get out of positions with a profit.
@David @AlexK @Team212 I really enjoy using Trading212 and itās been a positive experience so far.
I do a large number of trades buying and selling US/EUR stocks for a small profit - around 0.25-0.50%. As I understand the new 0.15% currency conversion rate will be applied twice in my case (when buying and selling).
Therefore I will only start making any profit on my trades that are rising by at least 0.30%. For example, using my strategy I was making around Ā£2.5-5 for Ā£1000 of stocks. Now I will be loosing money if the stock rises by only 0.25%. So the outcome of my trading will be now from negative Ā£0.05 to positive Ā£2.5. So although it is only a 0.15% charge. It actually reduces my profit by 50%.
The new currency fee just makes my trading pattern no longer suitable for trading212 and regular trading was the main driver that led me to trading212
If necessary, can we instead introduce a paid tier account, for example?
Trading212 - Ā£0 monthly charge
- 0.15% currency conversion charge
Trading212 - Ā£3 monthly charge
- 0% currency conversion charge
What do you think?
Iāve been saying this since 1929.
Plusā¦ I will happily pay 1,000ā¬ monthly if T212 does all the tax part automatically with German authorities as all german brokers does.
Remember Nokia, Yahoo, GEā¦ a leader can always fall, and usually they do.
If you are mostly trading US stocks, it is logical to open an account in USD. So for most transactions there will be no fees. I just need to change vusa to vusd (sell vusa and buy vusd) and thatās it. Who trades on multiple markets should choose in which currency to open an account, but in the worst case he will pay a fee for half of his transactions.
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I would assume this to be the case within error of pieās allocating funds as they are all orders that are subject to fx conversion.
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This isnāt the case, the text is more or less a legal cover in the case this does somehow occur.in the future. all client funds are with an FCA approved bank and thus receive the protections.
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this would apply to the ability to make new orders, existing ones would either be untouched or rejected if the order failed to go through due to the change. so just because the minimum was 0.1 yesterday, thereās no guarantee it may not be 0.2 or 0.3 or 0.05 today/tomorrow and clients are responsible for checking themselves when they wish to make a trade. I am assuming that once an order has been processed and is pending, it should not be subject to any changes in minimum size.
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constructive criticism is welcome, however there have been many cases of abusive language and behaviour to other community members and staff over the last year which has led to this line. opinions and statements must be backed by the facts to avoid issues, otherwise its just someone trying to damage T212ās reputation.
My money already quickly disappears if I sell lots of stocks at once and ends up much lower than it should have been. I already presumed there was a fee, I canāt believe itās going to charge even more now.
Dear David
I understand you have to fund your operation. My Feedback is a request regarding dividend payments. I have an Interactive brokers account and they allow you to have multiple currencies in your account.
When holding US stocks, I assume your new policy would convert dividends into pounds. Then when reinvesting It back into US stocks It will have to convert again from pounds to dollars. Effectively being charged twice if the dividend is to be reinvested.
Please can you look into direct reinvestment of dividends without FX fees. Or consider Allowing users to hold multiple currencies in their account as is done with Interactive Brokers.
if you are doing market orders, that may be a cue to use limit orders instead.