Share Dealing Costs

DavidHayton

switch76 wrote: »

This year I went with TD Waterhouse and just noticed the foreign exchange fee. I believe I can't hold foreign currency within an ISA so the 3.5% fee will be on every share.

Yes, you're right. Sorry, I had forgotten about the ISA rules. I looked into all this five years ago. Partly because of this, and partly because I was already contributing to a S&S ISA with HL, I opened a Trading plus account: http://www.tdwaterhouse.co.uk/Choose-an-account/Trading-Plus-Account.aspx Just have to be careful with CGT, but since it is a joint a/c with OH we can make £20k gains between us before we need to worry about it.

switch76 wrote: »

When you sell, is it 1.75% of the sale value? That will cost more if the shares have gone up.

I have always assumed that this works both ways (i.e., answer YES to your question), but in my 5 years with TD I have never converted any foreign currency back into GBP. Why not pick up the phone and ask them?

Best wishes
David

switch76

DavidHayton wrote: »

Yes, you're right. Sorry, I had forgotten about the ISA rules. I looked into all this five years ago. Partly because of this, and partly because I was already contributing to a S&S ISA with HL, I opened a Trading plus account: http://www.tdwaterhouse.co.uk/Choose-an-account/Trading-Plus-Account.aspx Just have to be careful with CGT, but since it is a joint a/c with OH we can make £20k gains between us before we need to worry about it.

What advantage does a Trading Plus account give you compared to the Trading account?

Do you have any strategies to minimize your CGT? Do you sell some of your shares every year to use your annual allowance of £10,600? I was thinking of doing that but that will mean paying transaction fees.

DavidHayton

switch76 wrote: »

What advantage does a Trading Plus account give you compared to the Trading account?

The Trading Plus account allows me to trade on the overseas markets. I do not think that you can do this with a Trading account (but I might be wrong). There are no difference in charges that I am aware of.

switch76 wrote: »

Do you have any strategies to minimize your CGT? Do you sell some of your shares every year to use your annual allowance of £10,600? I was thinking of doing that but that will mean paying transaction fees.

It's a joint account so the effective allowance is doubled. I am nowhere near this in terms of aggregate gains since purchase. When the CGT allowance does start looming, I'll switch holdings to crystalise gains.

David

sabretoothtigger

switch76 wrote: »

How does that help? They don't allow you to buy international shares.

They do allow you to buy American shares like Cisco or Intel. I believe its done as a CDI which is foreign shares sold in pound sterling held in the uk