The problem with FX cost is not the spread which is almost zero with T212, the problem is that when you buy a stock in a different currency you are also buying the currency in it. So after let’s say a year you have your stock up 10% but the FX is against you big you may lose all that gain. While if you are holding it in its nature currency, you will sell it at 10% gain and then you can convert the amount back at your main currency whenever is the best conversion for you, thanks to that you can even make more than 10%.
It plays an important factor on the long term in the moment you wanna sell the shares. And same goes for dividends because you don’t have to worry if the day the dividend is paid it’s a bad day for your currency.
It seems small but I can tell you for personal experience that can move easily 2-3% of total value in a year (in my case I also had changes of 8-9% in a year). And I’m talking about EUR/USD which the volatility is low.
As an example in my main portfolio (with a broker with multicurrency account) I have DIS bought in January 2018 in USD, the stock is down 3,41% but I’m actually up 1,22% thanks to the dollar that got stronger. It’s a big difference.
In this case selling it and converting USD back to EUR will give a profit where there is actually a loss in the price of the stock. It would have been profitable even here but the same can happen in the other way around, and in that case here you can’t wait for the right FX price to convert. And this is one of many examples which is convenient the Multicurrency account.
Of course for the amazing features that my other broker gives me there are also not as such great features as T212, plus there is also a price in commissions per trade, annual custody, etc. Each broker, has pros and cons, you need to find the one that suits you better, in my case is T212. This is why as soon as T212 gives the possibility to move stocks from other brokers I will move everything I have there from markets available in here, but I can tell you for sure that if by that time they also have a multicurrency account I will be 10times happier