Skip to Get Started navigation
Skip to Choose an Investment navigation
Skip to Choose an Account navigation
Other TD Services
Skip to Tools & Research navigation
Foreign exchange may be necessary in order for you to trade in stocks that are quoted in currencies different from sterling, whereby you would need to convert your sterling for the relevant currency in order to pay for your desired stock. You may also need to convert sale proceeds from a different currency back to sterling, or a payment arising from Corporate Actions and Dividends that are paid in the underlying currency.
HMRC rules state that you can't hold foreign currency in an ISA, therefore if the base currency of a stock is not sterling, an FX must be done at the time of trade. Any income from none UK holdings is converted to Sterling automatically.
FX is determined by an exchange rate. Exchange rates can fluctuate and so can create additional risk to international investment if a market's currency rises against sterling. However, movements in currencies can also work to your advantage.
When trading international stocks you will receive a currency rate of exchange for the trade you wish to place as well as a price for the underlying stock. The rate of exchange is a live price and is open to the same fluctuations as share prices.
Multi-fills may apply to an international share trade. This means that your order may be traded in separate blocks, and therefore the same FX rate may not apply to each.
If a multi-fill is applied only one trade will be shown on your contract note showing an average FX rate.
You can choose which of the 9 currencies you wish to convert into your cleared funds, and will receive a real time exchange rate from the market.
Standalone FX transactions will be clearly shown on contract notes and statements.
Our multi currency facility helps to reduce the need for FX by letting you hold cash in your TD Trading and TD SIPP Accounts in 9 currencies:
The exchange rate is known as a spot rate provided by the market. TD charges a 1.50% margin on the value of that spot rate for all transactions less than £25,000. We can however, reduce our margin for transactions above this amount.
This table shows the tiered margin costs:
* Maximum electronic transaction size.
These rates will be applied to standalone FX conversions, but because of the possibility of an international share trade being subject to a multi-fill (traded in separate blocks) we can only apply these reduced margin rates if the stock trade goes through in one lump.
Examples of how the reduced margin rates may be applied:
The value of your investments and the income derived from them may go down as well as up. You may not get back all the money that you invest.
The value of international investments may be affected by currency fluctuations which might reduce their value in sterling.
We may receive two elements of commission in relation to international dealing - Trading Commission and our FX Charge. Please see our Rates and Charges for full details of the relevant costs.
Please note for trades which have required multiple fills to execute, you will be charged an FX at the rate applicable to each individual fill. This may result in a higher FX charge than would be calculated against the whole.
If you are unsure about any aspects of the features or risks of these products, you should obtain advice from a qualified financial adviser.
Please be aware that we have a revenue sharing agreement for the FX charge with a third party (which may be a member of TDBG) if you require further information please write to us.
The facility is live online from midnight on Sunday to midnight on Friday, with telephone support available 7.30am - 9.00pm Monday to Friday.