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    • neilem
    • By neilem 12th Mar 18, 10:35 PM
    • 87Posts
    • 102Thanks
    S&S ISA - US stocks
    • #1
    • 12th Mar 18, 10:35 PM
    S&S ISA - US stocks 12th Mar 18 at 10:35 PM
    Hello, I have a Cash ISA and HTB ISA, latter being the only active ISA this tax year. Iím wanting to put some money into a S&S ISA (£10-£15k) before this term ends.

    What provider is recommended when investing into US stocks? I have marked out a couple, so Iíd need to select these individually myself, as opposed to a fund. Also, maybe the possibility of a precious metal ETF (optional).

    Any suggestions most welcome. Thanks!
Page 1
    • bowlhead99
    • By bowlhead99 12th Mar 18, 11:26 PM
    • 7,494 Posts
    • 13,596 Thanks
    • #2
    • 12th Mar 18, 11:26 PM
    • #2
    • 12th Mar 18, 11:26 PM
    The different platforms/ brokers don't all offer all the foreign markets and some will not offer any foreign ones at all. Will you only want US stocks forever, or do you want US stocks now but then Hong Kong and Australian listed stocks in a few months time and German and Swiss stocks next year?

    Depending on the amount of buying and selling you're doing and size of deals you're doing, the fee per transaction may not be as important as the fx commission rate. You can't hold foreign currency cash in an ISA so all your dollar purchases and sales will get converted from / to sterling each time. If a typical broker transaction fee to place the trade on the stockmarket for you is £10-15 per trade but you are trading in £5000+ chunks of stock, that trade cost is only about 0.2% of your transaction size and over a long term holding period can be pretty much ignored; whereas the broker might charge you 0.75%-1% of fx rate loading on your buy and sell which is 1.5 to 2% for the round trip. Whereas if you are only buying £1000-worth at a time, a £10 fee is a whole percent so you would be looking to try to shave down the fixed transaction fees rather than just looking at for the lowest fx rates.

    Brokers that cover the US market (and others) include, interactive investor (iii), AJBell Youinvest and many more ; I just mention those to get you started as on average the others are more expensive or offer fewer international markets or don't offer ISAs or whatever.

    You mention you have marked out a couple of stocks to select individually as opposed to a fund; but within your £10-15k will it all be stocks/ETFs or might you want some open ended funds too (OEICs / unit trusts)? As not everyone offers everything - e.g. are competitive for US stocks but don't do OEICs, while Youinvest and iii do open ended stuff but their charging structures will differ.

    The precious metal ETF is not really a problem as you can buy them on the London exchange quite easily.
    • Tom99
    • By Tom99 12th Mar 18, 11:35 PM
    • 1,600 Posts
    • 1,047 Thanks
    • #3
    • 12th Mar 18, 11:35 PM
    • #3
    • 12th Mar 18, 11:35 PM
    I am with Halifax and have ended up with US stock due to take overs. Some of this stock can be traded live online and some can't, so once you have picked a platform I would message them and find out just what sort of trades you can place as trading over the phone may be more expensive.
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