How does currency conversion affect my investments?
Вставка
- Опубліковано 30 чер 2024
- Have you noticed how sometimes the share price hasn’t changed, but you still see a profit or loss on your international stocks?
Our video on multi-currency accounts is here to make sure you have the tools and knowledge to get the most out of your investments in the stock market.
In this latest video, we cover:
▪ The bid-ask spread in the FX market
▪ How do FX fees work?
▪ How does the exchange rate affect your international stock returns?
This information is not investment advice. Do your own research.
⌚ Timestamps:
00:00 Introduction to currency conversion
00:41 What is currency conversion?
01:02 Exchange rate explained
01:20 Spread explained
01:46 FX fee explained
01:55 Impact on investments
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When investing, your capital is at risk. Investments can fall and rise, and you may get back less than you invested. The information in the video was correct at the time of recording but may have since changed.
What I don't like is that the overall realised profit/loss hides all the buy and sell 0.15% FX fees
You can try this in practice mode. Buy some shares of a boring stock. Immediately sell it. Go to your order history. The spread and fees should mean you've sold at a loss. But your total realised profit and loss doesn't reflect that.
The FX fee is included when the profit/loss of a position is calculated and displayed in the result tab when visiting your 'History'. The total realised profit/loss filed in the 'Orders' tab doesn't include the FX fees for the time being. Nonetheless, this information is visible on the monthly statements that we send as well as on your annual tax statement.
@@Trading212 It would be great and more transparent if there's an option (perhaps a toggle) to include FX fees in the total realised profit/loss in the future.
Can you not hold multiple currencies, invest in multiple in well without converting currencies?
Yes, you can deposit in different currencies and hold funds in multiple currencies simultaneously without converting them via the app.
Is there any way I can se the FX Impact, before I buy the stock? That would be helpful
There is no way to see a calculation of the FX Impact in advance since the impact is based on the live move of currency pairs after you open a position.