(DEGIRO) Why did I lose additional approximately $3 in Degiro after buying USD stock from Euro account (30/7/2020: 1 euro = 1.19 usd)?

[ash1994]

Could someone please explain me what I missed here?
I have traded US stocks by Degiro’s Euro account from Finland for awhile. I hadn’t noticed until I found out after deducting transaction fee of €0.51, I have lost additional $1-$3 for every order after deducting 0.1% exchange fee.

Let take an example:

On 30/07/2020, I bought 2 x Atlassian stocks at $189.9 (USD)($379.8 in total). My euro-account was deducted €322.08 (Euro). On that day, the exchange rate is 1 euro = 1.19 usd. Therefore, after deducting AutoFX conversion fee (0.1%), I should have ~ $382.89.

Why did they take $382.89 to buy $379.8 value of stock? I take a look at all my transaction and I notice that I lost around 0.8% of total value of stocks I purchased. Did I miss some kind of fee here?

 

[vlasit]

@ash1994 Degiro explicitly lists all fees and the exchange rate used in your transaction history. If anything is unclear from there, you can post a screenshot and people here can have a look.

Where did you get the $1.19 from? Google? Degiro might use a different exchange rate (theirs varies from one minute to the next), and they always use four decimal places.

Also, make sure to check the fees in your country on the price list.

 

[ash1994]

@vlasit The numbers above are deducted €0.51 transaction fee already.
After researching, I think the problem is the exchange rate.
In the receipt, they use USDEUR = 0.8480 ~ EURUSD = 1.1792. While if I use market rate of EURUSD ~ 1.19 at the same time, it makes the huge difference (~€3)
Receipt

 

[vlasit]

@ash1994 Here's a screenshot of the exchange rates on the 30th of July. As you can see, it varied from 0.844 up to 0.8524. Therefore, I do not think Degiro cheated you on the exchange rate, it's just that when you bought, you got a less favourable rate than the one at the end of day, which gets shown by Google.

And the 0.51€ fee is hopefully clear from the price list (0.50€ + 2 · $0.004). So everything checks out in this case.

 

[rootsrockreggae]

@ash1994 Have you taken into account brokerage fees? It’s not free to buy or sell on stock exchanges with DeGiro (apart from certain ETF under certain condition).

 

[ash1994]

@rootsrockreggae The numbers above are deducted €0.51 transaction fee already.
After researching, I think the problem is the exchange rate.
In the receipt, they use USDEUR = 0.8480 ~ EURUSD = 1.1792. While if I use market rate of EURUSD ~ 1.19 at the same time, it makes the huge difference (~€3)
Receipt

 

[giodg]

@ash1994 https://www.degiro.co.uk/fees/compare-brokers/
do you count in the fees? e.g. €2.50 per transaction

 

[ash1994]

@giodg The numbers above are deducted €0.51 transaction fee already. In Finland, it’s only €0.51.
After researching, I think the problem is the exchange rate.
In the receipt, they use USDEUR = 0.8480 ~ EURUSD = 1.1792. While if I use market rate of EURUSD ~ 1.19 at the same time, it makes the huge difference (~€3)
Receipt

 

[talwyn]

@ash1994 Under other fees on their web they list a 0.10% exchange rate spread also.

 

[yessina]

@ash1994 Yes there is an exchange fees which is around $2.50 per order or somewhat close to that number.

 

[ash1994]

@yessina The number above is what’s left after deducting €0.51 of fee.

After researching, I think the problem is the exchange rate.
In the receipt, they use USDEUR = 0.8480 ~ EURUSD = 1.1792. While if I use market rate of EURUSD ~ 1.19 at the same time, it makes the huge difference (~€3)
Receipt

 

[kiteria]

@ash1994 Next to the transaction tab you have "account" with more fees you had to pay.

 

[ash1994]

@kiteria Yes, I included the fee (€0.51) already.

After researching, I think the problem is the exchange rate.
In the receipt, they use USDEUR = 0.8480 ~ EURUSD = 1.1792. While if I use market rate of EURUSD ~ 1.19 at the same time, it makes the huge difference (~€3)
Receipt

 

[resjudicata]

@ash1994 Degiro have exchange fees

 

[ash1994]

@resjudicata yes, I know.

The numbers above are deducted €0.51 transaction fee already.
After researching, I think the problem is the exchange rate.
In the receipt, they use USDEUR = 0.8480 ~ EURUSD = 1.1792. While if I use market rate of EURUSD ~ 1.19 at the same time, it makes the huge difference (~€3)
Receipt

 

[resjudicata]

@ash1994 Where were you getting the market rates from?

 

[ash1994]

@resjudicata I use Google chart

Exchange rate

 

[resjudicata]

@ash1994 The times Google shows aren't live to the minute(I'm seeing a 1 hour delay) and they also use rounding.

E.g they show 1.8 at the minute for 13:20 while Bloomberg shows 1.843 for 14:16

 

[j_g94]

@ash1994 You need to use manual mode and exchange one time everything to usd.