Worth noting that Revolut charge the same 0.5% FX charge on total transactions above a certain amount in a month. I believe Transferwise also offered this rate, but have lowered it to 0.35% now. 0.5% above interbank is highly competitive!
Freetrade and Revolut will build different products and have different business models (as Monzo & Revolut have). They will all do well IMO as they offer superior products and pricing than the incumbents… and are cool!!
Revolut don’t charge premium users 0.5% above any amount, it’s still free for them no matter the volume. Anyone doing serious investing/trading with Revolut will be premium users paying zero FX transaction charges on unlimited transaction amounts. The premium yearly fee is peanuts compared with the savings. That’s the Freemium principle.
Seems like multi currency accounts was raised but most of above discussion seems like on FX rates commission(0.5% or now I guess 0.45%).
Just for understanding purpose, Is freetrade considering multi currency account(effectively GBP, USD Cash) in long term(may be lower in priority now) or there are commercial implications which doesn’t work with freetrade model and is not planning to offer this service?
It would be useful to hold our account payments in multiple currencies so that I do not have to worry about getting screwed over with the FX rate, and transfer it over to my native currency when I want to, at the rate I want to.
Be it through you guys or a third party.
Does Freetrade make money from current FX charges? If so, it seems like a bit of a hidden cost.
EDIT: FX Charge - Spot rate + 0.45%.
Would be amazing if we can convert when we want to / makes sense to rather than losing out on small amounts with each foreign transaction.
I think we can all appreciate and do without smart ass comments like these when discussing topics.
It is entirely possible for people not to know everything or have all pieces of knowledge in mind at once and so it does not immediately occur to me to go to an external source and find their facts.
Thank you for redirecting me to the prices page.
The focus of the ideas is to help improve the app and from a user’s perspective if it is not labeled or costs aren’t explained directly from the app from a particular transaction it seems like a missing UX flow or opportunity to make the users journey a little easier.
I know from the robo advisor a user can pull information. It would be great if it was present on our contracts via a small information icon / context menu
Apologies, Its not accusatory, and it was not of that intention. It is a perfectly valid point from a user’s perspective.
The idea isn’t for me to find answers for myself in particular, it is to think about ways which will help answer possible questions future users might have.
If it is not immediately obvious as to what the charges are without having to dig a little deeper away from the source of the subject then it can be considered as an anti-pattern.
I could be wrong, I haven’t dug around the whole app but the experience which prompted this question put me in a situation where I had to ask, and so I am sure when the mass market is reached there will be more people asking the same question, as with anything, however obvious it may seem.
“Currencycloud today announces the launch of Currencycloud Spark, a solution enabling banks and Fintechs to provide multi-currency accounts to their business customers to collect, store, convert and pay in more than 35 currencies. Currencycloud Spark will enable businesses to realise their global ambitions faster than they ever dared dream.”
Provide USD pots instead of automatically exchanging USD into GBP.
Situation and the Problem
Sale of US shares, and US dividend payments are immediately converted from USD into GBP.
i) no decision making on when currency is exchanged
ii) Re-investing with USD divs/share sales hits us with another FX fee, and an exchange rate hit.
iii) cannot withdraw USD into nominated bank account.
Provide us with two pots: one where we get charged an FX fee to do GBP to USD (we already have this), and another that receives USD when we sell or receive dividends.
To convert from a USD pot back to GBP we can pay the FX fee.
When we buy shares, it uses currency from the non-sell USD pot for free if funds are available, and any extra it can take from the sell pot has an FX fee charged. We could withdraw USD directly from Freetrade into our nominated USD currency account*
This way Freetrade still earn some money for supporting foreign trades, but clients can also avoid exchanging an unfavourable rates, and actually use their bucks.
Currency FX fees are reasonable, but right now we have no control over these. Even less control when receiving dividends.