Introduction of FX Conversion Fee

[Dougal1984]

Eh - how are you getting a broker to discount the 0.5% stamp duty payable on SMT purchases - why would they pick up this charge?

[genleeshin]

does .15% FX fee also apply to transferring money from my ISA to Invest account which is in USD

[Y.M]

The fee will not be charged when you transfer funds in Manage Funds. It will only be applied within the context of trading i.e when buying/selling shares.

[rovelist]

Thanks! That is really Great news!

[Briscoe]

David you beast! This is made my day

[liam.k]

When will this 0.15% FX fee be introduced?

[Supraman]

@Sunesh

Game changer thanks @David saves 0.15% three times and helps long holders save me moving else where now.

I’m slightly confused. An FX happens in these scenarios when you deal with a stock priced in a “foreign” currency:

1. When you buy a share
2. When you receive a dividend
3. When you reinvest the proceeds from a dividend (e.g. this can happen automatically in a pie)
4. When you sell a share

Does @David’s post mean that the FX fee will still be applied to scenarios 1, 3 and 4, but there will be no FX fee in scenario 2?

If so, how are you saving “0.15% three times”?

[RLX]

@Supraman

I’m slightly confused. An FX happens in these scenarios when you deal with a stock priced in a “foreign” currency:

1. When you buy a share
2. When you receive a dividend
3. When you reinvest the proceeds from a dividend (e.g. this can happen automatically in a pie)
4. When you sell a share

Does @David’s post mean that the FX fee will still be applied to scenarios 1, 3 and 4, but there will be no FX fee in scenario 2?

If so, how are you saving “0.15% three times”?

If it isn’t an April Fools prank, I interpret it as no FX fees on payments from corporate events (dividends, capital, stock splits): → Scenario 2

@David

N.B. We’ve taken into account the feedback and have decided to not apply an FX fee for payments arising from corporate events such as dividends.

And all the other events pays FX fees, such Buys and Sells (Reinvests are Buys). → Scenarios 1, 3 and 4.

So it’s only saves 0.15% one time. (Better than nothing.) And pays 3 times 0.15% FX fee.

[Supraman]

Yes, that’s my understanding too.

However, @Sunesh’s comment suggests to me that he (and probably many others) have interpreted it as more than that:

@Sunesh

Game changer thanks @David saves 0.15% three times and helps long holders save me moving else where now.

The FX fee will still be applied to each dividend 2 out of 3 times (reinvestment and sale, but not distribution).

[Layfon]

Yes you are right. The guy clearly didnt understand it if his comments were anything to go by. You just dont get FX fee on dividends but when you reinvest fx fees apply.

[Raph1981]

My interpretation is as follows if you buy, sell or reinvest in a currency not of you’re own the fee applies however receiving for example a dividend (quarterly special or yearly) it doesn’t apply. I tend to look at investment for the long term and intend to hold them so in theory I could have been penalised 4 times a year without actually doing anything with my shares. That’s why if my interpretation is correct I’m happy enough

[TInvest]

Credit where it is due for taking feedback on board. Seems a fair compromise.

[Supraman]

It’s certainly better than nothing. However, I think they should’ve gone one stage further and also not charged an FX fee when dividends get automatically reinvested in a pie.

Did we ever get an answer on whether a dividend must be converted from the foreign currency to the base currency and back again in order to be reinvested? It would seem to be simpler and cheaper for everybody if those steps were avoided.

Having said that, we know that the FX fee is just a rebranded commission, and isn’t related to FX in any way. Therefore, even if direct reinvestment is possible, Trading 212 may decide to charge for the reinvestment anyway.

[RLX]

@Supraman

Having said that, we know that the FX fee is just a rebranded commission, and isn’t directly related to FX in any way

If Trading 212 adds more useful features, like:

• include all ETFs’ currency versions

• convert all stocks/ETFs/Investment Trusts to fractional shares

• export actual portfolio to Excel file

• more information about the dividends payments (gross dividend and withholding tax amounts in the account currency)

• proper tax reports, with more detail (XLS/XLSX and PDF)

• faster dividend payments

• more velocity on the orders

• more stability on the platform (so far there weren’t more outages)

• drop down filters on the search option (currency, type of ETF payment: Dist./Acc., asset manager, exchange, category(?) )

• include the already existing stocks and ETFs on the existing categories (a lot of them don’t appear on the existing categories)

• create new categories for more user experience (Investment Trusts, ETCs, ETNs, leaving the ETFs alone on their category)

• the search option should wait for OK of the customer instead of trying to always update, it’s annoying, takes longer to type and I suppose uses more resources from the servers

• activate right mousse button to copy all things on web app, including “History” option

• “hide” pie instruments from the positions panel (to have a focus more on the short/medium term trades)

• export to an Excel file (XLS/XLSX), a database with all the existing Trading 212 instruments, with at least some basic characteristics, e.g. ISIN, ticker, name, type of instrument, currency, stock exchange, minimum investment. If T212 want to go all the way, with their performance, return and volatility in several periods, category (like a Morningstar Excel export about mutual funds).

(And less cosmetic things, like social pies.)

… I can consider the 0.15% “FX fee” as an investment to have better service.

[Darko]

@mdmmica

Fx fee is paid only once you deposit (and only if you deposit from non USD account).

Afaik, it’s not possible to make a deposit in another currency. If you deposit euros into an usd t212 account at Barclays, they will return your money.

[Clarkyboy]

Likewise, I am in the unfortunate position to be an existing customer with an ISA and Invest account already both active in GBP.

As I imagine for many traders, I have an account for short-term trading, and an account for LT investing (my ISA). I actively manage short term trades with tight stops and FX fees on every order (however reasonably low) simply nullify this strategy.

In light of the introduction of the fees (which is after all, a change to my account) I would just like a way to make my Invest account USD to avoid hundreds of unnecessary FX fees per year on every buy/sell…

If I were a new customer I would simply create an Invest in USD and an ISA in GBP. If I understand rightly there is no issue for a new T212 customer. Say I had my current ISA with IG, I would not be in this position - I could simply set up my new T212 account as above and transfer any previous years ISA savings into my new T212 account.

I really would respectfully ask you guys to consider a way to make this possible for us who already have ISAs with you but want an account to actively trade with alongside it.

[liam.k]

Any news on a date when this will be launched on the app?

[anealb]

So just to confirm - dividend payments will not be subject to the 0.15% FX fee in the future - has this been reversed?

[anealb]

So just to confirm - FX Fees will not apply to future dividends contrary to what was previously stated?
Thanks.

[Richard.W]

@anealb

So just to confirm - FX Fees will not apply to future dividends

Yes, that is what has been said

Introduction of FX Conversion Fee

N.B. We’ve taken into account the feedback and have decided to not apply an FX fee for payments arising from corporate events such as dividends.

The fx fee will apply when if the cash from the dividend is subsequently used to purchase more stock.