extra fees for buying on different stock markets?

olb81

Hi I've got a freetrade account

I had an interest in buying these shares:

EssilorLuxottica

€ELp 

I notice when I buy or sell there appears to be a FX fee

can anyone fill me in on what this is and how much it takes per transaction etc??

is it worth on this basis avoiding either individual shares, or specifically individual shares on foreign exchanages?

if I am being charged extra fees, then how can i be sure in future to buy ETFs or shares on fee-free exchanges?

DRS1

Presumably this is because the stock is priced in euros and what you have in your account is pounds sterling. So you need to change some of the pounds into euros and there is a foreign exchange fee for doing that. It is a percentage but I don't know what as they seem to have bands up to 0.99%. And it seems to apply to the exchange rate.

wmb194

https://forums.moneysavingexpert.com/discussion/6676192/extra-fees-for-buying-on-different-stock-markets

You need to look at the fees for your particular plan. The FX fees for non-sterling trades range from 0.99% on the free plan to 0.39% on the Premium. As Freetrade doesn't offer currency accounts you'll pay this fee when you buy and sell. If you want to avoid these fees stick with securities denominated in sterling listed in London.

At the moment the best broker I know of for FX fees is Trading212 at 0.15% and the nice thing is that it offers currency accounts so you won't have to pay it when you sell, only when you decide to convert to another currency. It pays more interest on cash than Freetrade as well.

https://freetrade.io/compare-plans

https://www.trading212.com/terms/invest

olb81

ok so to be fair i may just avoid buying these individual stocks anyway it was just an idea…

I also notice that it only allows be to buy WHOLE shares , with each one approx £150

I say approx so this means also that I cant track the progress as easily ….

I cant just say ive invested £300 in this share, it will be slightly above or below and confuse matters

I think I may be better off buying a vanguard ETF

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82069227#Comment_82069227

Last I checked Freetrade only offers fractional shares for US listed securities and gilts.

Trading212 offers fractional shares for the majority of securities it offers on every market.

MeteredOut

In the nicest way possible, if you're having to ask these questions, then, unless this is play money, picking individual stocks might not be the right thing for you. Have you considered investing in low cost index trackers, in a low cost platform (eg, T212) instead?

With £300 investments, the more expensive fees on some platforms will really eat into the increases required before you even break even.

olb81

freetrade is cheap as well as 212 though i believe

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/82069299#Comment_82069299

Yes true. You could buy a cheap, diversified global tracker fund on freetrade.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82069205#Comment_82069205

I believe that IBKR has the lowest FX fees.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82069227#Comment_82069227

What is your motivation here? Why would you want to buy individual shares on foreign exchanges? You last sentence is one you should take to heart as 99% of people are better off buying an ETF vs shares of individual companies.

Sam_666

My advice to OP, is STOP!
If you dont even know what FX fee is and how to select LSE traded products, switch to Demo trading accounts and learn. Read, read and read more on how trading works, if you have serious interest in what you are doing.

But, if you just want to play around with money, just go ahead.
I think all trading platforms should have quiz questions for new applicants before accepting to open any trading accounts.

Seriously, looking to buy shares in eyewear maker in €? Which value keeps dropping, 1m=-8%, 3m=-14%,1y=-30%. This looks like sure winner to me.