Trading 212 offers investments in a wide selection of shares and ETFs across a number of different countries. In this video, we explore an important aspect of investing in a company that is denominated in a different currency to the bast currency of your Trading 212 investment account, illustrating with the use of clear, simple examples how currency fluctuations may affect such an investment.
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At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
interesting information, can you more introduce tax aspect of investing in different currencies/countries?
Thank you! Good information!
thanks
can we please get renko charts?, like Plus 500 etc
A very interesting and simply explained example. Thanks Peter for that. Looking over that would one
A) Invest in a managed fund by someone that would pool a set of managed shares in a singular company and be aware of the currency fluctuation to share increase and cash in funds when the optimal moment came up.
B) Would investors wait to buy a large sum of currency at an optimal price during a set period and then know they have bought at a great exchange rate and therefore use that currency to buy share at an optimal buy in price?
C) Is there a Fund Management that would invest in various overseas companies that give your £ pound a spread in the profits of various investments, other than just one individual shares in one company ?
If so, what is the safest way to make profit ( is local currency the best way forward and less hassle?)
Apologies in advance for my naivety as I m new to learning about investment. Many thanks.
Cheers Paul, thank you for your detailed question, as well as for your interest in our educational videos.
It’s our ultimate goal to assist you as much as possible in constantly improving your skills, however, due to regulatory reasons we’re not in a position to provide you with trading advice as to what the best path is in order to profit the most.
Still, we’d be more than happy to answer any other questions you might have. Please feel welcome to reach out to our team anytime. We’re available 24/7 over chat, phone or e-mail.
@@Trading212 Yes much appreciated your reply and understand your situation. Many thanks
Thanks
Could you please do a day trading video live demo or real monetary trade
I used to demo trade with iq options on a 60 second timer
They sadly don’t have the 60 second options 🙁
Make sense that is why in so of my invest I am up in the USA but down on GBP/USD
Never thought about that before, your explanation was clear, thank you Peter.
Man! That was really fascinating seeing all the math in action, and all. It kind of makes me appreciate how the computer systems calculate the conversion on The currencies. I also get to see that the numbers are. Of his generated, every thing is systematically calculated, during The investing. Thank you for sharing this, Peter
Thanks for covering a subject I had worried about for a few years now. Most videos I find on the topic are usually just talking about trading FOREX and didn’t address this particular issue.
I understand that there are risks in foreign market investing, but how would you go about hedging the risks other than limiting the percentage of your portfolio investing in any single foreign market? Would I be right in assuming that to hedge against losses in GBP-USD rates, investing in GBP-EUR would work because of the currencies inverse relationships? or have I perhaps misunderstood the balances between foreign currencies? I won’t ask for any advice as you cannot give it, but on a purely educational level where do balances exist when trading with foreign currency?
I would also additionally Like to suggest that Trading212 looks at the features provided by M1 finance in the US and consider whether it is possible to include similar aids, such as the portfolio pie’s, split/grouped pies and Fractional investing shares. perhaps being able to hold multiple separate currencies in our portfolio at a time, even if only the big three, GBP/USD/EUR.
By default when you’re buying a foreign stock you’re also unwittingly betting on their currency. No ifs no buts.. That’s why Trading 212 won’t allow you to have a dollar only account because they make money every time you jump from your native currency to a foreign exposure. If for example you want to buy an American stock from Britain, the platform will first exchange your sterling to dollar ( Fee applies ) and when you sell it back, you get dollar, so instantly the platform will exchange your dollar back to sterling (not for free obviously)
That’s why Trading 212 should introduce Dollar only account.. Or Euro only account otherwise as a trader you’re constantly jumping from one currency to your account currency and back and forth which will in the end put you in an unfair position. And you dearly pay for the exchanges. I’m currently searching other brokers who have dollar only account…
yup, I want euro only but still
Uncle Sam gets his share aha!
When you’re trading equities, what is that exactly?
Buying and selling shares.
Equities, stocks and shares are synonyms.
Is it possible to hold both dollars and euros in your account so that you don’t need to convert each time you want to invest in a different continent?
Same effect. Your capital gains (loss) for tax purposes is always based upon the GBP equivalent regardless of the currency used to make the purchase..
i have learnt how to maximize profits with my low minimum investment
makes a lot of sense kudos
Thank you for putting this video together Peter. Since the Left hand side of any mathematical expression I.E 0 = 0 , 1 = 1
Equals logical truth.
Ok, to talk about the opposite , if you tried the division of one / zero, you don’t in numbers alone get the answer impossible.
That is based on the Black-Scholes equation.
I’ll go into i^2 = 1 soon.
Little heads up, new trader here
Gotten any luck?
How do you determine the exchange rate? Do you take a commission for each exchange and, if so, what is it?
Thank you for that very clear and understanding example Peter
That explanation was fairly clear. Thanks Peter!
I think this video should also include not only the exchange rate but tax implication in other countries, for example US, W8-BEN.
It’s sound safer to trade in pound
okay now if we bought a 10 stock with each stock costs 5 pounds it means we have 50 pounds invested in the stocks and we will wait for a year to double it up to 100 pounds? why should I wait for a year 100 pounds? need help peter!!!!
How can I change my email on trading 212
Av just subscribed where hve u bin all my life
JUST STARTED WITH YOUR PLATFORM where do i find a basic video on how to:- find out if you have an open trade? and how to:- shut down a trade quickly if you want too?
great video by the way
how do you hedge to mitigate the exchange rate fluctuation
Super
Beautiful
The best video I have even seen on buying US shares !!!!! Please keep them coming !!!
I’ve been learning a lot from trading 212 lately but being a usa-ian I’m unable to open a 212 account. I love the way the platform looks and operates from the training I’ve been watching. Not too flashy, easy to find things, and just a great looking platform over all. Will 212 ever offer accounts to yanks in the future and if not would you be able to recommend a trading platform similar to yours? TOS and many of the others are killing me. If I had the ability (money) I’d have no hesitations to relocating to Europe not just for the ability to trade with 212 but so many other reasons. Thanks in advance for any help you’re able to provide.
Make it great by making available to trade pre market on USA shares and also allow customer to open account on currency USD
This guy sounds like a weather man. I love it.
Can’t wait for new content
This series of videos is a tremendous resource. Thank you. Looking forward to securing an account!
Great video
Nice video thanks allot
Nice work
What platform are you using for this? And is it available for all countries?
👏
Hi, how can I invest, more information.