Trading 212 FX fee of 0.15 on LSE GBP

penciltop

Hi all,Trading 212 has a FX fee of 0.15 on LSE GBP, heard on some forum thread before that if buying on LSE London Stock exchange in the Great British Pound that they were no FX fees

Is it typical for FX fees on LSE GBP tranactions on the new challenger platforms/apps?

masonic

Why would you ever pay FX fees when there is no currency conversion involved in a trade? I don't think this is a benefit, it is just "normal".

penciltop

FX fees are always normal built in, it's VUAS ETF by the way with a TER of 0.7 Distributing?

wmb194

https://forums.moneysavingexpert.com/discussion/6668490/trading-212-fx-fee-of-0-15-on-lse-gbp

Including today, for years I've regularly bought LSE listed shares in GBP using my GBP balance and I've never been charged an FX fee. I think you've got the wrong end of the stick somewhere. You'd be charged a 0.15% fee if you used your e.g., EUR balance to buy a GBP denominated security.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82000353#Comment_82000353

FX fees are fees you pay when a currency exchange takes place. If you are buying an ETF priced in GBP and paying for it with GBP, there should be no FX fee charged by your investment platform. FX is shorthand for foreign exchange.

There is no ETF trading on LSE with ticker VUAS. There exists VUSA with TER of 0.07%, and this is priced in GBP, so you'll pay no FX fee when you buy it.

However, the distributing currency is USD, so if you hold it within an ISA where you cannot receive USD distributions, you will have to pay a FX fee on the dividends to convert them to GBP. This is not a "GBP transaction" it is a USD transaction. If you hold an accumulating ETF like CSP1, then you wouldn't need to convert this USD distribution to GBP and incur the FX fee as it would be reinvested within the fund.