stevio
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Post by stevio on Aug 10, 2018 7:24:01 GMT
I was wondering who might have lowest:
- FX rate charge/FX rate
- Share dealing charge
- Share holding charge
for a purchase of USA shares in the region of £25k
IWeb is 1.5%/£5/no management fee
AJ Bell is 1%/£9.95/0.25% £30 cap
H&L is variable %/£11.95/no management fee
Does X-O not allow trades in international shares?
Would the FX charge be the biggest cost consideration here?
I am presuming the FX charge is charged when you buy and also when you sell?
If so, then to reduce cost it would be better kept in maybe a SIPP or ISA, as opposed to a trading account where you might want to buy and sell to use up your CGT allowance?
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bigfoot12
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Post by bigfoot12 on Aug 10, 2018 7:56:27 GMT
I asked a similar question a few years ago. What I particularly didn't like was when I switched from one US ETF to another I had to pay 1% twice as my proceeds were converted to GBP first and then back to USD on the purchase. I always use a Sipp/ISA, but that is to make my tax return simpler (consider the dividends too). This won't help you, but in the end I mainly buy ishares denominated in GBP, and the few others I have are long term buy to holds.
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james100
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Post by james100 on Aug 10, 2018 8:23:21 GMT
Couple of thoughts: 1. If "old", moderately wealthy, looking to increase your holdings over time in US domiciled stock and not a US citizen, you should check the potential of IHT/US estate duties and process which may be applied in the event of your untimely demise (anything domiciled on US soil); 2. Worth considering a USD cash account attached to your trading account to avoid the constant, relentless cherry biting of FX on both purchase and dividend payments - use your div (which should be automatically paid in USD) to reinvest directly back in US denominated securities as required; 3. For initial purchases circa $25K, you may wish to calculate potential benefit in reducing inflated bank forex fees by purchasing USD via a currency specialist (eg HiFX etc), rerouting to a USD sub account attached to your main current account (Barc, HSBC do this, probably more) then sending that USD to your trading account; 4. Points 2 and 3 would mean you take one modest hit on forex then nothing further on this score (but building a position in purely USD unless you manually exit); 5. interactive investor is worth looking at if you go down this road; flat 22.50 GBP per quarter, to offset against 10 GBP (infrequent rate) trading credits; USD account automatically included and divs automatically paid out in USD too (you can choose to settle trades/ swap accumulated USD to GBP at their forex rate too which is high versus a forex specialist but lower than most UK banks); 6. I think investing in single US shares at the moment is verging on the impetuous and that CGT liabilities may be the least of your future concerns
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james100
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Post by james100 on Aug 10, 2018 8:38:09 GMT
Btw, ISAs are GBP transactions and div payments only so you will always get hammered on holding US denominated shares in an ISA. To some extent this happens anyway with UK companies who may be denominated in GBP but div in EUR and USD (lots of them) and are paid out in an ISA as GBP. On bigfoot12 point re reporting and dividends, you get a consolidated tax return split per currency base then apply the HMRC published forex (monthly) to report to HMRC is GBP. It's an annoying 10 minutes each year but no more than that. I operate in GBP, USD, EUR and AUD so my approach to this may well be overkill for your needs.
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stevio
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Post by stevio on Aug 10, 2018 10:36:11 GMT
Couple of thoughts: 1. If "old", moderately wealthy, looking to increase your holdings over time in US domiciled stock and not a US citizen, you should check the potential of IHT/US estate duties and process which may be applied in the event of your untimely demise (anything domiciled on US soil); 2. Worth considering a USD cash account attached to your trading account to avoid the constant, relentless cherry biting of FX on both purchase and dividend payments - use your div (which should be automatically paid in USD) to reinvest directly back in US denominated securities as required; 3. For initial purchases circa $25K, you may wish to calculate potential benefit in reducing inflated bank forex fees by purchasing USD via a currency specialist (eg HiFX etc), rerouting to a USD sub account attached to your main current account (Barc, HSBC do this, probably more) then sending that USD to your trading account; 4. Points 2 and 3 would mean you take one modest hit on forex then nothing further on this score (but building a position in purely USD unless you manually exit); 5. interactive investor is worth looking at if you go down this road; flat 22.50 GBP per quarter, to offset against 10 GBP (infrequent rate) trading credits; USD account automatically included and divs automatically paid out in USD too (you can choose to settle trades/ swap accumulated USD to GBP at their forex rate too which is high versus a forex specialist but lower than most UK brokers); 6. I think investing in single US shares at the moment is verging on the impetuous and that CGT liabilities may be the least of your future concerns Thanks Am I able to use Revolut for this? I was not aware of any accounts that allow you to have a USD account - I will look into interactive investor though, thank you
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james100
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Post by james100 on Aug 10, 2018 11:13:53 GMT
I don't have a revolut account so not sure about that, but the underlying point relates to anti money laundering rules: the cash to fund your trading accounts (not just UK) need to come directly from a bank account with a name match to the trading account (or 1 of 2 if joint account either end), this is why you can't (IME) fund a trading account directly from a HiFX (or other currency broker) contract. If Revolut involves direct currency movement from (your) named bank account then I'm sure it would be fine. If it goes via an interim, then probably not fine. www.ii.co.uk/investing-with-ii/international-investing/www.barclays.co.uk/current-accounts/international-bank-account/for info
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Nomad
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Post by Nomad on Aug 10, 2018 11:30:46 GMT
I don't have a revolut account so not sure about that, but the underlying point relates to anti money laundering rules: the cash to fund your trading accounts (not just UK) need to come directly from a bank account with a name match to the trading account (or 1 of 2 if joint account either end), this is why you can't (IME) fund a trading account directly from a HiFX (or other currency broker) contract. If Revolut involves direct currency movement from (your) named bank account then I'm sure it would be fine. If it goes via an interim, then probably not fine. www.ii.co.uk/investing-with-ii/international-investing/www.barclays.co.uk/current-accounts/international-bank-account/for info Interactive Investor will not accept transfers in from, or make payments out to, USD & EUR accounts unless they are held in the UK, e.g. HSBC, Barclays, Santander, Citi. They would not accept my Bunq (Netherlands) euro account.
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james100
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Post by james100 on Aug 10, 2018 12:21:51 GMT
I don't have a revolut account so not sure about that, but the underlying point relates to anti money laundering rules: the cash to fund your trading accounts (not just UK) need to come directly from a bank account with a name match to the trading account (or 1 of 2 if joint account either end), this is why you can't (IME) fund a trading account directly from a HiFX (or other currency broker) contract. If Revolut involves direct currency movement from (your) named bank account then I'm sure it would be fine. If it goes via an interim, then probably not fine. www.ii.co.uk/investing-with-ii/international-investing/www.barclays.co.uk/current-accounts/international-bank-account/for info Interactive Investor will not accept transfers in from, or make payments out to, USD & EUR accounts unless they are held in the UK, e.g. HSBC, Barclays, Santander, Citi. They would not accept my Bunq (Netherlands) euro account. It should be fine if the names match and Bunq facilitates a direct transfer with no intermediary. Here's a link from their FAQ with ii instructions how to transfer Euros in from overseas using the sub account system (inc Netherlands): help.ii.co.uk/system/templates/selfservice/ii/help/customer/locale/en-GB/portal/402800000001010/article/Auth-5309/Bank in case that helps. Edit: I'm assuming that link is still valid and I've certainly never had any problems in the past but they've had some changes recently so anything is possible!
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Nomad
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Post by Nomad on Aug 10, 2018 12:44:14 GMT
Interactive Investor will not accept transfers in from, or make payments out to, USD & EUR accounts unless they are held in the UK, e.g. HSBC, Barclays, Santander, Citi. They would not accept my Bunq (Netherlands) euro account. It should be fine if the names match and Bunq facilitates a direct transfer with no intermediary. Here's a link from their FAQ with ii instructions how to transfer Euros in from overseas using the sub account system (inc Netherlands): help.ii.co.uk/system/templates/selfservice/ii/help/customer/locale/en-GB/portal/402800000001010/article/Auth-5309/Bank in case that helps. Edit: I'm assuming that link is still valid and I've certainly never had any problems in the past but they've had some changes recently so anything is possible! Thanks, but II stated in an email to me "Thank you for your email regarding a bank transfer. I'm afraid we cannot process international bank transfers, your deposit must originate from a UK bank account."
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benaj
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Post by benaj on Aug 10, 2018 15:17:30 GMT
What about Trading212 and Degiro? Trading212: 10 commission free deals every month (for consideration max. GBP 10 000 each). After that: GBP 1.95 + 0.05% per deal for equities traded on LSE; EUR 1.95 + 0.08% per deal for equities traded on Deutsche Börse Xetra and Euronext Netherlands; USD 1.95 + USD 0.005 x Number of shares for USA Equities. Degiro: € 0.50 + USD 0.004 per share www.degiro.co.uk/data/pdf/uk/UK_Feeschedule.pdfIweb: International trades: £5 per trade; 1.5% foreign currency charge or just buy some US funds (uk domiciled funds) with 0 initial charge on the cheapest platform
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james100
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Post by james100 on Aug 10, 2018 15:37:39 GMT
Thanks, but II stated in an email to me "Thank you for your email regarding a bank transfer. I'm afraid we cannot process international bank transfers, your deposit must originate from a UK bank account." I've just escalated this issue (generically) via the payments team and received confirmation that overseas payments in are still absolutely fine per that link so long it's a direct transfer and the ii and origin bank account names match....withdrawals can only be made back to the current country of residence though (so, USD/EUR back to a foreign currency sub account of e.g. Barc GBP current acc etc). So unless bunq is run via a custodial account system or does indirect transfers (so might not meet the name matching condition), I guess you got an uninformed customer service rep.
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stevio
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Post by stevio on Aug 11, 2018 8:07:34 GMT
Thanks, but II stated in an email to me "Thank you for your email regarding a bank transfer. I'm afraid we cannot process international bank transfers, your deposit must originate from a UK bank account." I've just escalated this issue (generically) via the payments team and received confirmation that overseas payments in are still absolutely fine per that link so long it's a direct transfer and the ii and origin bank account names match....withdrawals can only be made back to the current country of residence though (so, USD/EUR back to a foreign currency sub account of e.g. Barc GBP current acc etc). So unless bunq is run via a custodial account system or does indirect transfers (so might not meet the name matching condition), I guess you got an uninformed customer service rep. Revolut state that they provide a Free UK current account Free Euro IBAN account - would this suffice? You can send payments to any account in most currencies in the app
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theta
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Post by theta on Mar 23, 2019 22:16:14 GMT
I was wondering who might have lowest: - FX rate charge/FX rate - Share dealing charge - Share holding charge for a purchase of USA shares in the region of £25k Interactive Brokers is hands down the best. - $2 flat fee per FX conversion which is always at mid market rate - extremely low trading fees (usually $1 per trade or less) - no holding costs except $10 per month inactivity fee, with all commissions credited against it, so if you spend $7 in commissions in a month, you pay an additional $3 in inactivity fee. Inactivity fee is waived entirely if your account is over $100k. You can hold UK stocks as well in the account, and cash in all currencies, so you can hold a lot of assets together there with a total value of >$100k in order to avoid the inactivity fee.
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cwah
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Post by cwah on Mar 30, 2019 16:14:33 GMT
Interested as well
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stevio
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Post by stevio on Mar 30, 2019 18:14:49 GMT
I was wondering who might have lowest: - FX rate charge/FX rate - Share dealing charge - Share holding charge for a purchase of USA shares in the region of £25k Interactive Brokers is hands down the best. - $2 flat fee per FX conversion which is always at mid market rate - extremely low trading fees (usually $1 per trade or less) - no holding costs except $10 per month inactivity fee, with all commissions credited against it, so if you spend $7 in commissions in a month, you pay an additional $3 in inactivity fee. Inactivity fee is waived entirely if your account is over $100k. You can hold UK stocks as well in the account, and cash in all currencies, so you can hold a lot of assets together there with a total value of >$100k in order to avoid the inactivity fee. Thanks for this Can you tell me the IB trading costs for USA shares - there seems to be costs listed under North America but also under UK a charge for USD-denominated stocks? The fees you listed of 1 USD seem to be using the North America costs which are less brokerchooser.com/compare-brokerageAlso, is there anyway around the inactivity fee? I dont think myself and my spouse would both be over the 100,000 USD limits individually, but maybe as a joint account or collectively under their Family Office Account Structure
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