I'm relatively new to share trading, but i signed up to ASB securities and purchased about 10,500 worth of VTS on the ASX.

I then log into my account and find I have essentially been charged a margin of 3% for the currency conversion. How ridiculous is that?


On the rates and fees part of the website it says Aus trades cost 0.3% then down the bottom in small writing it says ASB MAY receive margin income on foreign exchange transactions - but gives no indication of the cost.

People trade currency all the time and pay like 2 pip or 3 dollarsish on a 10k transaction, no way in hell did i think i would incur a 300 dollar fee. Now this investment will have to outperform an NZ investment by 3% for me to get any worth from it.

Has anyone had a similar experience to this? How do you avoid these ridiculous fees if you wish to trade on international markets?