Now I really like 212 and I agree that 0.15% is reasonable (even if elsewhere is cheaper, there are other fees to take into account), however, trading USD stocks with a GBP account now means a two way fee every trade which is a shame. With the below become more attractive, especially with the extra exchanges.
This is where Iām a bit disappointed, posting that T212 is profitable, thatās great, and Iām glad as it means the broker Iāve been using for the past year should be here for some time to come.
Not so great āwhile remaining completely freeā
I have no intention of leaving T212, however, I am somewhat concerned about what other fees and charges are going to be brought in over my time spent here in the name of features and quality improvements, even with this assurance
I hope this doesnāt come across too negative as Iām hoping its seen as constructive feedback and agree with @CavanHaganInvesting here
Perhaps it can be argued that this is a broker fee. But I once asked about this in chat with HMRC and was told no, - fx costs are not deductible against profits. I notice that the AJ Bell annual tax statement is consistent with this view in that they report the value of sold proceeds, before deduction of the 1% they take as for fx, and similarly for dividend payments, before their 0.5% deduction.
With Interactive Investor I can trade US stocks and collect dividends in a USD account, and then when I want to withdraw I can make a USD transfer to Revolut and exchange currency there.
Firstly, thank you for announcing it with time for us to sell if we wish to. I appreciate you letting us know in advance.
With regards to the actual announcement, I must admit that I am dissappointed and agree with this post.
I can understand why you are doing it, but having been told that there would be no fees this comes as a big disappointment, especially after other changes that have ocurred over the last year. Messages of āthere will be no more fees addedā now will not be perceived as trustworthy/re-assuring as they once were.
Iām a very happy Trading 212 customer and extremely pleased to see this development David. You provide such a fantastic investing platform and i really look forward the future with Trading 212 as my broker.
We are so lucky to have Trading 212. It really is an opportunity of a lifetime to be able to invest the way Trading 212 allows. So many people around our planet do not have these opportunities and I feel very privileged.
Thanks for all your hard work, expertise and ground breaking improvements
If it wasnāt for T212 I probably wouldnāt have ever started trading. I do get the expense side has to be cover but for me it just means Iāll be looking more firmly at UK shares. Shame as I quite enjoy the US penny stock scene.
Iāve seen that thereās a deposit fee as well now, not sure when that crept in.
On my country, Portugal, all the fees, including the FX conversion fees are tax-deductible.
If I buy a USD stock, for example, for tax reasons only the EUR values matters, so I can offset the FX loses including the FX fees.
Also companies can deduct all expenses, including FX fees, it could on trade/commercial operations (operating activities) or investing activities.
This will alter your risk calculation. Small traders trying to build accounts will need to stay in trades longer if they can. If the trade turns the wrong way youāre more likely to lose.
Iāve just been paper-trading in TradingView with the commission settings enabled and it makes a material difference.
I think theyāll be fewer existing retail traders actively trading in the next 3-4 monthsā¦ but Iām guessing that calculation has already been made.
Thanks for this information. Not ideal for me as a dividend investor with an EUR account trading 75% of my stocks in GBP and USD, but I guess the FX fee is fair .
Hope part of the plans will be to speed up dividend payments and also adding information on the payments you can expect once the ex-dividend date has passed. Improving the yearly statement for tax declaration here in The Netherlands would also be great (stating detailed dividend payments and total account value at beginning and end of year).
Looking forward to hear more about the big plans, keep up the good work!
A brilliant move to add this new fee just after the deposit fee by a credit card. We have been asking to create a multicurrency account to circumvent the SWIFT fee if we have an account in USD, but we havenāt gotten any update on this matter. Even though this new FX fee wonāt affect whoever has the account in USD and invests only in stocks in the USD, opening a new T212 account in another currency (i.e., CZK, RON) was the solution for the issue mentioned above with the deposit fee/SWIFT. So, we cannot avoid any fee anywayā¦
I completely understand the reason for this. However, not ignoring our main inquiries, which were raised due to the latest imposed deposit fee, would be much appreciated before introducing such a new fee.
I agree with all. But in my case, referring to my tax obligations in my country, Portugal.
Trading 212 is paying the dividends with a widening delay.
I receive the Trading 212 dividends sometimes with more than a 1 week late after the official payment date.
The excuse that the companies pay their dividends late donāt stick, because I have stocks also on other trading platforms and receive them first than on Trading 212, I receive on the same day of the official payment date or at maximum, the day after.
Can people confirm if dividends from US stocks will have this FX fee? Obviously dwarfed by the 15% US tax on them but still makes dividend stocks of UK companies that bit more appealing for compounding purposes.
This new fee I am no sure how I feel, however this does mean I will expect a better service, for example have been waiting couple weeks already for fractional share request, or other features in pipeline will happen quicker now?
That is what was said, yes, dividends will also lose 0.15%.
Payment arising from Corporate Actions and Dividends that are paid in the underlying currency will be converted to the accountās currency using the spot exchange rate + 0.15% FX fee.
Update: This has now been changed. Corporate Actions and Dividends will not incur fx fee.
This is a good point @Dao that may have been missed in the discussion, a side-effect seems to be the potential reduction of very small orders through the systems so T212 wins on both fronts by obtaining additional funds and also keep the exchanges + IB (?) much happier with reduced volumes of orders. But this is a bit counter-intuitive to what you would expect T212 to want (btw I have absolutely no idea what a āvery small orderā is or the daily volumes involved).
I would still personally prefer a small fixed annual payment that has been mentioned by @phildawson and others rather than an FX conversion fee being introduced on trades, it would still allow funds for improved quality of trade execution times and the platform development in the future + you know where you stand. Look at all of the complexity that is added with the introduction of this fee and the impact on T212ās USP of āfree investing in stocks and etfāsā, each additional bump up just chips away at the āfreeā investing mantra that got T212 to market. Regards,
As for many others on here, though itās never nice seeing profits reduced, I/we get it. You are a business within a capitalistic society at the end of the day, and businesses exist to make money.
In much the same way we too are here to make moneyā¦
However, if you are going to go down this path of incremental fee introduction, then you will have be clearer on what we will get in return. Many, though I was not one of them, have proclaimed that they would be happy to pay for special features such as level 2 market information, etc. Is this part of your plan, albeit to provide it 'free of charge"? How about the ability to trade before and after market, or to review oneās trading performance statistically? Both have been requested by many.
You state āWe canāt wait to excite you with the next level of features and quality improvements at Trading 212.ā It is truly great to hear this and you have done some really good work with the introduction of the advanced mode, but some elaboration would be much appreciated. People can then decide whether or not they feel āthe give and the takeā is worth it for them.
All the currency versions of ETFs, including the EUR versions of ETFs?
And add more EUR-denominated stocks?
(All with fractional shares.)
Because, letās face it, Trading 212 is UK-biased, lots of GBP-denominated ETFs and stocks (including secondary and lesser liquid UK stocks), specially as EUR is the 2nd most traded currency in the world and Euronext already surpassed the London Stock Exchange.
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