Hi folks - the current exchange rate is quite prohibitive if we are a regular trader or planning to invest a substantially amount of money at once. It would also be nice to have a better breakdown of the fees we are paying.
It’s a constant 0.45% which FT doesn’t actually receive as revenue, it goes to a third party. Still, it’s pretty competitive with other brokers charging 2-3 times this amount, or eToro charging a spread of around 1.5%
Someone mentioned this might reduce in future once the new investment platform is up and running to around Transferwise levels, which would be good…
I think the fee is not reasonable for active traders. If FT really doesn’t get commission from this an easy way to fix this would be to have different wallets for each currency, this way you only pay the conversion fee when you move between wallets, rather than losing over 1% per investment if you invest in foreign markets. I was using degiro and will move back because of this once I exit my positions.
If it’s a third party issue, they should change the third party - every US stock trade is painful otherwise. Rev not charging it. Stake charges once to move money into $ account/ once to get out. They don’t have UK shares and ISA accounts though.
Adam hinted the FX fee would lower to somewhere around transferwise levels once the new platform was up and running and they bring the process in house
The most recent blog mentioned the removal of commission for instant trades was the first of the benefits of the new platform, I imagine there’s a few more announcements coming including fractional shares and maybe a first look at the Alpha account
If I invested $250 on Freetrade I’d be charged 0.45% to convert - about 82p if calculated in pounds.
I can convert that amount on Revolut for free in the week. The commission (if outside your limit) is £1 or 0.25% which ever is higher. In this case 62p but would go up to £1. Despite being charged a commission it’d cost me as the consumer about 18p more.
Obviously if it’s within a commission free limit it will be cheaper on the whole with no fx fee…
Previously I saw this as ‘Free’ vs quite restricted - but for US stocks there’s not much in it for larger orders?