When opening an account on our UK platform, your account will denominated in GBP and linked to a GBP bank account. At DEGIRO foreign currency transactions can be handled in two ways; using the AutoFX trader or holding foreign funds manually.
With AutoFX (default), we take the hassle out of currency conversion, you place the order and we will automatically convert the required amount. You will only have a single cash fund position in GBP. Purchases will be charged in GBP and proceeds from sales of foreign products will then convert back into GBP.
With Manual currency holding, you have the possibility to manually purchase foreign currencies. If you frequently trade in foreign currencies the Manual function could be the most cost-effective option. When the manual function is turned on for a particular currency, a cash position will be held in the foreign currency.
Yes. You can hold a balance in any currency that you choose Manual currency handling.
If you choose to deal with Manual currency holding there are a few points to consider:
When using AutoFX, the exchange rate you receive will be the spot rate + 0.10%.
Further details can be found on our Fee Schedule and Custody Fee Schedule.
Yes. To manually convert a lump sum of funds to a foreign currency, you can go to the Orders tab and then select Currency Transaction.
To do this, you must choose to Manually hold this currency prior to making the conversion. The cost for this service can be found on our Fee Schedule and Custody Fee Schedule.
DEGIRO offers clients the possibility to manually execute currency transactions bigger than €10,000 during the period from Sunday 22.00 (UK time) till Friday 22.00 (UK time), which can be done via the WebTrader. For orders smaller than €10,000 we use different time periods. These can be done daily between 7am (UK time) and 9 PM (UK time) from Monday through Friday.
Your Portfolio Result panel will show two values:
For Basic and Custody profiles, this value is the same as no additional Debit Money (margin) is offered.
For Active, Trader, and Day Trader profiles, this value can be different as additional margin may be available.
When a negative amount is shown in the value Cash Fund, this means that you are in debit and you are liable for interest payments in accordance to your current debt allocation.
At DEGIRO you can obtain debit money at extremely low rates through the use of allocation. The costs for the allocated amounts can be found on our Fee Schedule and Custody Fee Schedule.
Non allocated debit funds are available at an annual rate of 4%. Interest costs are charged monthly.
DEGIRO offers a very attractive rate over negative cash balances if the amounts are allocated. By allocating you are allowing us to timely budget these funds externally, resulting in this lower rate.
It is possible to allocate online in the Web Trader.
Step 1: Click on blue button “Adjust” at the navigation bar in the Web Trader.
Step 2: Go to the tab Settings
Step 3: Select "Allocation"
Step 4: Choose the option '' Add new allocation '' select the currency, enter amount and press the green button.
You will see the following message:
The allocation will start at the first day of the following month. During the month you are able to change your allocation. The last allocated amount will become your '' current allocation” after 23.59.59 hours on the last day of the month.
If you wish to terminate your allocation, you must allocate zero at corresponding currency by pressing the trash button. Your allocation will then be changed to a new allocation of 0. Changing the allocated amount can be done in the same way.
Be aware that allocation only provides a low interest rate for the corresponding amount and is not an approval for a negative balance of this amount. Our margin model calculates the maximum allowed negative balance based on the positions in portfolio.