Investment Return Breakdown

"Sell price higher than average price, why my return is negative?"

Foreign exchange impact on investment returns is now crystal clear:

The update is out for Android devices. iOS update coming up in the following days.

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Excellent improvement

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:partying_face: whoo hoo! I was hoping for something like this. Rock on :metal:

That’s great, thanks! :wave: :wave: :wave:

ps: go enjoy the weekend George :wink:

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Cant wait for this to get on IOS. Great work T212!!

Nifty addition this.

the best thing is this’ll remove “that one post a day” asking about why someone lost money despite selling higher

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Yeah, I’m sure it’ll save T212’s staff a lot of headaches. Features like this and the recent Aim warning one will educate users too. Great idea.

Questions will still surely come, but they can now be answered by referring enquirer to the app. I still like the idea that a notice should appear on the first occasion that someone buys an instrument that is not in their base currency.

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I have trading 212 app updated and I am on Android, I cannot see this FX Impact statistic. what am I doing wrong?

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Same here tried reinstalling and restarting phone still doesn’t work

You need to press where it says RETURN and expand the list

nothing available to click on my side

Check you have Android 5.5.7 version of the app.

Version 5.5.6 guess i have to wait until google decides to let me download the update

yes, me too. I am on 5.5.6, nothing to update on google store.

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I made myself a beta tester for the app. Maybe that is why I have 5.5.7. Anyone can sign up as a beta tester.

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The percentage for total gain excluding FX seems to be miscalculated for my investments with positive total returns but negative FX (see picture).

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How should these numbers be interpreted? Let’s look at an example.

Suppose share is $100 when fx rate is 0.80 so costs £80. Suppose later price is $120 and rate is 0.75, so value £90.

Increase in GBP terms is 12.5%. The stock price gain in USD terms is 20%. The currency loss is 0.75/.80, ie -6.125%

1.125 = 1.20 x 0.9375

The point is that the two effects are actually multiplicative, not additive. Most things in finance are multiplicative.

RETURN factor = Gain/loss factor x FX impact factor

But another way to look at it is that if the rate had not changed one would be up $20 or £16. But we are up only £10 meaning a currency loss of £6. As proportions of original investment of £80 these are RETURN 12.5%, FX effect -7.5% and gain/loss 20%. Now effects are seen as additive.

So we should interpret the figure gain/loss % as saying how much we would be up if fx rate had been constant. FX impact % shows how much of original investment has been gained or lost due to currency movement alone.

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That is odd. Try logging out and then back in.