Hello , Can you please add more Us stocks listed on Xetra you already have a lot especially compared with other brokerages i have previously try , i would like to purchase with euro becouse of the fx impact i think us dollar will continue to decrease and am down only from the fx impact 3,5% , big names like paypal,ebay,nio and etc would be much appreciated
It might help a lot if you list some of the stocks by ticker or ISIN
I don’t understand your thinking about exchange rate impact. Buying a US stock like PYPL on Xetra will not make your returns any more or less subject to changes in the EURUSD rate.
2PP = 223.05 EUR
PYPL = 269.88 USD
223/269 = 0.83 = EUR/USD, a relationship that will be fairly closely maintained if EUR/USD changes. A share represents a fractional ownership of the company and this is not affected simply by movements in exchange rates.
ADRs do involve some extra cost to the provider of them. In the case of a dividend paying ADR this cost is deducted from the dividend. Generally, it is better to own the US shares directly.
Becouse i am noob , when a usd drops in value lets 0.5% , amazon stock price increase 1% , amazon stock listed on Xetra would be up only 0,5%? Right ?Is this how it works ?
I guess I am missing something too. Correct me if I am wrong @Richard.W: if currency exchange has no different impact, why are companies listed on different exchanges? For example Tesla is traded in Euro in Europe (Frankfurt) but in Dollars in the US (nasdaq)
Laguiar i made a new topic if you could check it , i added there tickets , would help us a lot if you could at any of those tickets becouse would unable us to trade them premarket ! Like most us platforms let you
Title : Xetra premarket stock
Having versions that trade on different exchanges achieves two things: expanded trading hours, and convenience for those who don’t wish to exchange currency or don’t have access to a foreign stock exchange.
Also, ULVR on LSE incurs stamp duty on purchase, but UL on NYSE does not. However, the provider of the UL ADR (an American bank or broker) will incur costs (including a special stamp duty at a higher rate than 0.5%) and this will be reflected in smaller dividend yield. If no dividend is paid, the bank’s costs are passed through in some other way, sometimes as a direct charge to the investor.
Yes, that is how it works. Thus in euro terms you would be up 0.5%, no matter if it is AMZN on Nasdaq or AMZ on Xetra that you hold.
I have learned that whenever I think I see a “free lunch” in the markets, it is usually an indication that there is something I don’t yet fully understand.
Exactly - this is how stocks like Alibaba trade in Hong Kong and also in the US (in ADR form). They are tracking the same stocks (you can check any charting tool to see that their performance matches).
Just keep in mind that you will not see the same daily % returns due to different exchange operating hours.
@JustLookingThx - Some brokers charge more for trading on foreign exchanges and in different currencies. So this allows local investors (i.e. Germans and other Europeans) to get exposure in their own currency and during local trading hours to stocks like Tesla.