Introduction of FX Conversion Fee

You’re correct In the sense it would slightly fluctuate depending on the price movement.

I calculated the fee as:

Buy 4K USD stock - fee £6

Sell £4.1k USD stock fee - £6.15

Ā£12.15 for one trade

X 80 = £972 per month

Or £11,664 per year

Thats on a 320K investment

Brains fizzing away with all these numbers :rofl:

@Alien As I understand, if I sell a share for $1000 then HMRC expects me to declare proceeds in GBP as calculated using the spot rate at the time, not by using some tourist fx rate, or off-spot fx rate of my broker.

AJ Bell, for example, charges 1% on the fx but always shows this as a separate charge, mindful of the fact that clients cannot take it as a deduction from sales proceeds.

This is why its best to use an ISA

But as T212 reports transactions, profit and loss in GBP, I use those figures directly for tax calculation, with no need to look at the exchange rates.

Will we have the fee in our review order to see how much we will be paying etc? Does anyone know.

In Portugal, XTB does not offer multicurrency, can i ask from which country you are using them?

ok I see, but in that case you would be making 80 winning trades at £100 profit each time per month = £8k/month = £96,000 a year. No offence but I think this would be almost impossible and even if it was then 96k a year is doing pretty well to not worry about the fees too much.

Use an ISA guys no tax implications.

it’s full bruv :slight_smile:

Agree! I just used those figures at the easiest example to cut the brain frazzle.

Sometimes the trades lose, sometimes they win. Your .15% will still come out on both ends either way.

Still about adds up to the £11k. The most simple solution is to just switch platforms or majorly cut down the amount of trades I make!

All the best,

Darryl

Lol you guys have too much money

So anyone know then if the fees will be added to review order page before executing?

So… Just to keep it simple… By april, if I buy 1000 of an US share, then I sell it (say I sell it again at 1000 ) I will lose 15 $?

no, assuming you mean £1000. 0.15% of £1000 is £1.50, so you will lose £3

No, if your account curreny is GBP for exapmle, if you buy £1000 worth of shares and sell them again for £1000, you do not make any loss.
But if you buy $1000 worth and sell again for $1000 you lose $3

he will lose fees though right. (including fx fees)

When we buy and sell, the cost is already converted to the account currency, so the fee is included in the buy/sell price, think of it like a wider spread. The effect is, the sell price will have to be a bit higher to to make the same profit you would have without the Fx fee.

Oh yeah, of course! I’m sorry, i was thinking of dinner and I miswrote… :sweat_smile: I meant 3 $

I admit that I’m seriously thinking on change my broker… It’s not because of the fees (I know that some more ā€œseriousā€ brokers, i.e. interactive brokers, have fees too), it’s just because I’m starting to lose my trust in t212