Which account currency is right in my case?

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1

Hi all, please suggest which account currency would be right in my case?
My income is in USD which would be the main source for investment. (Also I have some savings in EUR, but they can be invested somewhere else if I have to stick with USD account.) I plan to invest in both USD and EUR equities – I do not know which the portion ratio will be though as I have no experience yet. My preferable withdrawal currency is EUR which is because I live in Europe.
Any thoughts are appreciated. Thank you!

3

Multi-currency accounts would be fantastic!!

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4

I recommend that it is simplest to use EUR. 1. That will make money transfer easier and 2. you will more easily have the correct tax records, since dividends and the proceeds of sales will be converted into the correct number of euros on which you will eventually need to figure your tax bill. If you try to run a USD account you will have to make a note of the exchange rate to use for tax reporting, every time a dividend is paid and every time you buy or sell stock. Since Trading 212 charges no currency exchange fee, there is little to be gained by keeping your account in USD. Multicurrency accounts are desired by many - but using them will require substantial record keeping of day-by-day exchange rates in order to figure the correct tax in local currency.

Here is a view:

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Can I still send USD to my trading212 account if its currency is EUR? Will conversion be done automatically and with no exchange fee?

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Reasoning from this post Bank transfer to T212 account in 'different' currency - #6 by Ed8, depositing in a currency other than account’s one is impossible. Which is unfortunate but expectable as t212 does not want to be used as a free currency exchange.

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Thank you all! So, where we are? My home currency is EUR and it is handier to fund/withdraw. On the other hand, I’m mostly targeted to USD securities. Whether my account is EUR or USD, conversion is unavoidable though performed at different stages. But it seems only to be considerable if I keep cash in my account for a long time and thus am exposed to exchange rate changes (which can be as good as bad). As my goal is investing and not trading, it must not be the case. Advantage of EUR account is that it eliminates conversion fee USD/EUR after withdrawing to bank.

At the same time, many people express regret for opening account in not USD… Please share your thoughts: do I miss or undervalue anything with this?

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I recommend you have your account in EUR to make it easy to transfer to and from your bank, and to much more easily keep track of your tax liabilities. The cost of exchanging EUR <-> USD on the Trading 212 platform to buy and sell US shares is very tiny and would only impact you significantly if you were going in and out of some stock on a very frequent basis. As a long term investor who is in the accumulation phase you will not be doing that.

It will be interesting to see if anyone wants to make a different recommendation. Those who agree with my recommendation can give a “like”.

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