Conversion fee - eToro/Trading 212/Freetrade etc

FirstTimeSolo

Hello 
I use online platforms to buy US stocks. I am charged a 0.5% approx fee when depositing funds for conversion to USD. Will I avoid this fee if I add funds in USD using my UK debit card?
Thanks

dj1471

Assuming they actually allow deposits in USD: yes. But your bank is likely to charge much more than 0.5%.

You may wish to consider Revolut, Starling Bank, Transferwise Borderless and Fineco Bank. All of these support free or low-fee currency conversion and allow you to hold USD. Some have limits and/or fees so you'll need to do your own research to see which (if any) suits your needs.

Thrugelmir

You'll suffer the same charge in reverse when you cash investments in. 

FirstTimeSolo

Thrugelmir said:

You'll suffer the same charge in reverse when you cash investments in. 

Yes but if i pay in GBP, I have to pay 0.5% twice. 

adindas

Could you have US$ currency base AC with eToro ? I mean you put your deposit into US$ currency. So anytime you buy/sell stock in US$ you will use that US$ currency.

What I could see here is that I could buy US$ currency using Revolut when the exchange rate is in favour of sterling and then transfer it into the eToro Account for share trading ?

Alternatively, I might be able to trade £/$ just for what I need using eToro platfrom if the fee is right and this US$ to be used for trading share ??

Is there any problem of doing that ??

FirstTimeSolo

Yes you can add funds in USD in eToro. You can't hold GBP in eToro. Anything you add in GBP is converted to USD. 

adindas

FirstTimeSolo said:

Yes you can add funds in USD in eToro. You can't hold GBP in eToro. Anything you add in GBP is converted to USD. 

Thanks.

So if I feed my account using debitcard / ot bank transfer using a UK account, it will be automatically converted into Us$ on that day ?

I understand eToro is an israeli company but have a UK lincence, so our investment account is covered by FSCS up to £85.000 shall the platform went burst. Am i right ??