Best way to register currency movement between USD and EUR?

English
1

Hi,
I have a broker where I have a multi-valuta account. So I place EUR in the account then convert to USD to purchase US stocks. The stocks pay dividends in USD.
There are plenty of times where I switch the USD dividend back to EUR.

Question is:
What is the best way to register those currency transactions: convert received USD dividend ->EUR and back again when I’m ready to purchase another stock in USD?

Do I just create a two deposit accounts, one with EUR+one with USD and “transfer” money between my EUR deposit account and USD Account or is there a better/preferred way of doing this?
Thank you for reading!

1 Like
Fees and interest charges in total return
Repeated Fees calculation in Performance
4

Hello,
I have basically the same question and comments of Pecunia. I have the case in DeGiro, where I first had to buy USD (with some fees) and separately buy USD shares. Having 2 separate Deposit accounts, transfer in between and add exchange fees separately feels a bit clunky.
Many thanks.
Regards,
Guido Kok

5

Also did any of you figure out how to make a proper Total and XIRR when you have one security account but several currency deposit accounts? Showing XIRR on the Dashboard for a multicurrency deposit account

8

I have an ETF in EUR which I receive dividends in USD and having the same issue. I resorted to creating the secondary cash account in USD and adding new dividends using 1:1 exchange rate. AFAICS all the values in the Statement of Assets and Performance sections convert the dividends in USD to EUR using whatever the exchange rate is at that time, so it doesn’t matter which rate you used when you first inserted the dividends entry.