Auto-FX hedging

[Matt.J]

Hi,

I’m interested in creating a portfolio of US companies but do not want to be exposed to the currency risk.

Would it be possible to add a hedge option where you offer short FX forwards to offset the currency risk? The % hedge could be an easy box to fill in.

Rather than going to a different broker and doing this manually, it would be a game changer to do it all in one app. Would be a nice pro feature and new revenue stream for Freetrade.

Thanks
Matthew

[JimSmith (Jim)]

You’ll always have to pay for such a service as there is a cost to FX hedging as usually it means one party is taking the risk of currency fluctuations if you don’t take it. Even large banks charge big clients for such services. Also I wouldn’t be concerned about currency risk with USD over a medium or long term time period.

[NeilB]

If you’re concerned about currency fluctuations and want a cheap way of doing it then a hedged ETF would make sense.

Low cost ETF S&P 500 trackers sans hedging sought

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