Trading 212 - US investments

A

AndroidMan

Registered User
Messages
403
I have some pies set up and intend to trade US stocks.

I was told years ago by somebody that trading in the US means you incur more fees.
It was at the time when AIB was on the NYSE (or similar).
I cannot find out anything more on this.

I know T212 will charge 0.15% on exchange rates and I understand that I am risking currency fluctuations.

Is there something else I am missing?
 
Just commenting again on this to bump it, but to be a bit clearer.

If I invest in the US stock market, my risks and liabilites, apart from the obvious are:

Exchange rate fluctuation
Exchange rate fee on buying and selling (0.15) with Trading212
CGT on profits if I sell
Unearned income on dividends

Are there any other costs associated with trading in the US?

I was told by somebody years ago that there was a bunch of extra charges, so I always was reluctant. But Trading 212 seems to make this easy and I am concerned I am missing something.
 
It all depends on the broker and the stock exchange. Trading US stocks is often cheaper than other countries.

Other charges are:
- broker commissions
- the spread between the buying price and selling price of the stock

They're not particular to the US, although neither are CGT or dividend income.

A risk is that you may become liable to US estate tax.
 
Last edited:
I don't think estate tax can apply if you have the shares in e.g. a Degiro account. I'm not sure about this though.
 
AndroidMan said:
I have some pies set up and intend to trade US stocks.

I was told years ago by somebody that trading in the US means you incur more fees.
It was at the time when AIB was on the NYSE (or similar).
I cannot find out anything more on this.

I know T212 will charge 0.15% on exchange rates and I understand that I am risking currency fluctuations.

Is there something else I am missing?
Click to expand...
Yes. That T212 is trading stocks via ibkr. So why going reseller when you can go to the wholesaler? I just opened an account with T212 just to check their app and I am disappointed. As soon as I bought my first stock I was asked if I wanted to lend it... What a question...
 
Last edited:
LoveTrees said:
As soon as I bought my first stock I was asked if I wanted to lend it... What a question...
Click to expand...

What is wrong with that question? You can make lending interest income via T212 with around 100% cash collateral.
 
Last edited:
Just simply say no if you're uncomfortable with stock lending and the associated interest income.

I personally like the Trading212 stock lending interest income. I earn interest (yield) on my CSH2 money market position and then stock lending interest income (on occassions when it is lent out) on top of that. Extra 0.49% yield when lent and full cash collateral.
 
Never all eggs in one basket:(

Beware Trading 212

I wish to share my experience of Trading 212 so as to warn others. I have both a portfolio of shares and interest-earning cash with this bank. I have been struggling for over two weeks to transfer cash to my home bank account and the portfolio to another broker but without success. I am unable...
www.askaboutmoney.com
That's my advice:confused:
 
AndroidMan said:
I know T212 will charge 0.15% on exchange rates and I understand that I am risking currency fluctuations.
Click to expand...
You do know that you don't have to sell back into Eur? You can sell your shares is USD. That way it never get converted back, therefore you don't lose on FX (That is until you want to get it back onto Irish shore)
 
I use Degiro and buy stocks that pay dividends. I don't really trade in and out of these stocks, as its the dividends I'm really after as an income. Are there any other types of brokers that would be better suited for my investment method.
 
BigPineapple said:
You do know that you don't have to sell back into Eur? You can sell your shares is USD. That way it never get converted back, therefore you don't lose on FX (That is until you want to get it back onto Irish shore)
Click to expand...
So long as you hold an asset/liability in another currency you are exposed to FX fluctuations.
 
daheff said:
So long as you hold an asset/liability in another currency you are exposed to FX fluctuations.
Click to expand...
Yes there is FX fluctuation over time but at the same time, there is no point to use Euro to buy US stock in Dollar (conversion).. then sell the US stock and convert back to Euro.. and then repeat the cycle of converting back and forth..

All I am highlighting is that there is a feature in T212 that you can sell in USD and don't have to feel that the app will force you to sell in Euro.. I didn't know that myself initially so thought it might be useful for someone.
 
You must log in or register to reply here.
Back
Top