first of all I have a usd account in trading212.
In the last few days that I have been trading in Europe with the euro, I understand that they are not worth it because of the conversion of the currency, so a lot of money is lost like .
solution to this problem ? there is ?
I would like your help.
as I see it pale to invest in Europe again with this hassle.
Are you talking about Invest or CFD accounts? Can you calculate and tell us how much you think you lost due to USD/EUR conversion? Check the rates used, which are displayed in the History for each transaction. Typically a currency conversion in Invest account costs about 1.5 per 10,000, In CFD there is 0.5% charged on absolute value of the profit/loss.
Of course losses and gains due to fx movements when EUR weakens or strengthens against USD are another thing entirely. Might this be what you are seeing?
Hi my friend
I work only Invest.
per stock missing 1-2%
1-2% is big for my account.
Please provide full numerical details for a transaction so we can help. It is impossible to be losing 1% due to fx. Could it be what I mentioned in second paragraph of my prior post?
there is no problem with the platform.
it makes perfect sense to change the amount of profit / loss based on exchange rates.
Iām just asking if there is any solution to avoid all this trouble.
supports 2 different currencies usd /euro ?
or if there is another solution to avoid all this?
No mutiple currency accounts exist at present. Some customers have been requesting this in other posts.
However, since you have not shared figures I am that unconvinced you have really suffered 1%-2% loss due to fx between USD and EUR. The fx cost is much much less than that. I think others would be interested if you can show figures that demonstrate 1%-2% loss due to fx.
My guess is that you are really thinking about the gain and loss that can be caused by a change in exchange rate between the time you buy and sell. Having an account in EUR will do nothing to change that, except in a cosmetic way. What matters practically is the gain or loss in the currency in which you pay for goods/services and pay tax at home.
I think what you are seeing here, in this -0.26%, is the loss due to the fact that the sell price is lower than the buy price, or perhaps variability in the USD/EUR rate if significant time has elapsed since you purchased. It is nothing to do with actual fx cost of converting USD to EUR.
The sell and buy prices for DBK are actually ā¬6.512 and ā¬6.517 currently. Unfortunately, on the web platform they are both rounded to 2 decimal places, so the difference is sometimes hard to see.
As an experiment, I just bought and then immediately sold 20 DBK in the practice account and lost about 0.1%, almost entirely due to the spread. The exchange rates in and out were 1.14014 and 1.14023. So the part of the loss that was due to currency exchange from GBP to EUR to GBP was tiny, just 0.008%.
Ehm, so when you buy stock in Euro with Dollar account.
First you buy share on Day 1 under FX rate A, Price B
When you look on value of your holdings on Day 2, FX rate is now C, price is now D.
Meaning in addition to have price appreciate/depreciate, you also have variable of FX meaning EUR to USD might depreciate, meaning less profit for you, or EUR to USD could appreciate meaning more profit for you.
Yes. It seems lots of people have trouble understanding this, at least at first.
However, I think worries about this are overblown. Think this way. Suppose you use EUR to buy Apple shares at $310. Later you sell for $315, but EUR has appreciated against the USD, so although you gained $5 a share you actually get back less EUR than it cost to buy Apple shares - a loss. Is this totally a bad thing? Consider these things: (1) the exchange rate was equally likely to have gone the other way in which case you would have had a double gain - over the many transactions you will do as an investor, currency gains and losses will probably balance out, (2) your loss may be tax deductible against other gains, reducing the pain, (3) because the EUR is stronger you will now find that things you want to buy (say, New York hotel room, fuel for your car, shares in Amazon) may be cheaper in EUR terms.
Similar arguments can be made to demonstrate that a weakening of the EUR leading to a currency gain is not totally a good thing, eg (3) other things are now more expensive.
