Funds Transfer

fonsde

Hi,

I have got some funds managed by a foreign bank, where currency is euro.

Is it possible to transfer them to a platform in the UK? Also are uk platforms offer funds in euro?

thanks

Totton

Much easier to cash them in and transfer the cash.

fonsde

So i would imagine that there are platforms that offer funds based on euros. How does this usually work?

Do you fund the account with a bank transfer? and the offer both euros and pounds in the account?


thanks

bowlhead99

The majority of investors based in the UK prefer funds priced in pounds to minimise fx costs. So, funds priced in pounds are the most common thing to find and buy on the fund platforms. Investors simply load up GBP into their account and buy them. Those GBP-priced funds might have underlying assets in the eurozone but you don't need Euros to buy in, you can buy in sterling and the fund manager (who gets good fx rates due to the large volumes) will handle the conversion.

However, some funds do have Eur and USD share classes for those that want them, and likewise some listed ETFs or investment companies traded on the markets are priced in Eur or USD.

Driven by supply and demand and the cost of offering more complex services, a majority of brokers or platforms only offer single-currency cash accounts rather than letting you maintain balances in multiple currencies. Within a UK tax wrapper such as an ISA for example, foreign currency cash can't be held so many people are OK with that, especially if they are only going to buy funds or shares denominated in GBP anyway.

If you want to hold cash on a platform in multiple currencies, and buy funds in Euros with Euros from your own account you would need to check with the relevant broker/platform to see how to fund the account. Companies like Saxo or TD Direct will handle multiple currencies. I use TD but have never sent them Eur or USD, I just send them GBP in the first instance and only end up with other currencies in my account after I get the sale proceeds back from selling something.