@David I donāt think itās a smart move if you wanna keep your eurozone customers. You donāt offer enough instruments in EUR thereby forcing us to buy with a FX fee that is higher than commissions on other platforms.
Here is an example:
Letās say I wanna buy the iShares Clean Energy ETF.
On T212 platform itās not available in EUR, so Iāll have to pay 0.3% in fees .
In that case, itās more affordable for me to switch to Saxo Bank and buy the ETF in EUR: no FX fee and only 0.2% in commissions. Thatās a 0,1% difference.
Unless youāre planning to substantially increase your offer in EUR instruments, itās almost certain you will lose customers (starting with me to be honest).
Remember that being on T212 isnāt very practical for Eurozone customers as we have to deal with the paperwork that comes with having a trading account outside that specific zone.
No problem if we save money on our trades but if the system is set up so that we pay more on top of the administrative pain in the ass, itās just not worth it anymore.
Iāve been mainly happy with t212 since I joined nearly 12 months ago. Opened my eyes to a whole new world and itās been an incredible journey so far.
Iāve seen the growth and popularity expand at a rate so have been waiting for various fees to pop up. Felt inevitable really. 400k - 1.4b clients. Something was bound to change.
The only issue I have is with the posts disclosing your popularity and profitability (which is great news! Business is clearly booming!) then wrap the message up nicely with āā¦while remaining completely free ā
Going forward I think itās wise not to write such things as personally it breaks the trust with your clients thus in turn leaves other things you sayā¦
Sad. As I have my account in RON, I will get crushed by this fee whatever I invest in.
Letās compare to XTB. They have 0.5% FX conversion fee, but thatās easily avoidable because they offer multi currency account. I deposit EUR to buy Euro ETFs and USD to buy US stocks, no commission. Also they offer zero trading fees since October.
It is now official then that Trading 212 is no longer the cheapest EU broker.
Transparent now yes. Perhaps not always previously. I know things will continue to change and thatās the name of the game.
I enjoy the platform greatly just would like to think theyāll be more open and clear (transparent) about potential fees in the future and not write comments that may lack credibility. Like the one written above.
(PS I have no problem with the feesā¦although it may actually make me stick more to UK stocks now #hometurf)
Jesus, I am really allergic to people like you, who denies any kind of criticism.
They have money from stocks lending, probably some interest from the non invested client money on bank account, etc. So yes, nothing is free.
Another month, another fee or some restriction.
Compound fx fee is terrible, there should be (at least) multi fx account option and fee should be applied only when converting (depositing) money eg. from eur to usd and then again when moving money from usd to eur account (same principle as revolut or any other broker)
If I buy the usd stock, it will be payed from usd acc., when I sell the usd stock, money will go to usd acc., same with dividends. When I want to get money, I will convert them to eur (fx fee) and send to my bank acc. in eur.
First of all excellent spin @David reminded me of this
2nd. Iāve written many times how I donāt mind a flat periodic fee, rather than āfuture percent feesā thatāll creep up.
0.15% might be lower (definitely not lowest) than other brokers, but other brokers does not force you to convert money unless you have to. Because you know what? they support multiple currencies.
this change literally made The āfree brokerā T212 more expensive to use than āpremium brokerā interactive investor, since I rarely need to convert between currencies and dividends arrive in their respective currency accounts.
well done!
on a side note good thing this happened before introduction of SIPP, now there is no reason to transfer here.
And XTB have local bank account (at east in my country), so no swift fee.
Wit Amazon stock example above.
It will be 2x cheaper to buy stock at āstandard comissionā broker like IBKR (2 usd fx fee for this one trade + cca 0.4 usd comission ) or ~11x cheaper with exchanged money in front.
0.15% seems to be low, but percentage fees are the worst.
Yes, it seems that also for swiss customers has to leave trading212. Introducing FX fees without creating multicurrency account was really a bad move from trading212.
I will wait if they do any corrections, otherwise iām out
Will this impact me much as a small investor? I tend to put in Ā£10-25 a trade here and there during the week. Should I save these small amounts and look to invest bigger amounts here and there to save on these FX fees? Thanks.
True. But others such as AJ Bell and Hargreaves Lansdown also force currency conversion at every trade, but at much higher rates of 1% and 1.5% respectively. Interactive Investor is now indeed cheaper for trades of size above Ā£3320, as 0% for fx and Ā£4.99 (or Ā£7.99) trade fee will be less than Trading 212ās 0.15% for fx and Ā£0 fee. But one has the additional monthly fee of Ā£19.99 (or Ā£9.99).
The problem with Interactive Investor is that deposits can only be in GBP, so there is a 1.5% fx fee to bring money into the USD account. That would pay 10 times for the Trading 212 fx fee.
So far as I can tell the most competitive for US stock purchases now seem to be
Revolut, Degrio and Interactive Brokers.
Indeed, without multicurrency account I have to leave the platform at the end of March as well
My only other option is to close all my positions + account and reopen one in Euro and invest only in Euro ETFs, but that is way too costly now tax-wise. If at least they offered us the option to switch account currency without closing itā¦ but no, we have no choice.
You are mistaken, IB doesnāt charge T212 any FX fees, they themselves said this fee is to purely make profit to finance new features. All the while saying ISA and invest are profitable!
So, There is no free lunch because they are selling us free lunch for a fee, that they got for free!
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thank you.
I have no idea who flagged this for what reason.
We have big plans for the next chapter in our development and we want to continue to be sustainable while investing hugely in quality and innovation.