Confused by iii - Transfers Out - £15 per line of stock

chuckbass

I opened an iii trading account today. Deposited £500, but haven't bought any shares yet

I know there is a £20 quarterly fee, but I only intend to make two trades a quarter anyway, so fees will essentially be £0

At their fees page, I noticed this

Transfers Out
£15 per line of stock

What does this mean exactly? Is this anything to do with moving funds from my iii account back to my bank account?

Thanks

westy22

If you wish to transfer a stock holding to a new provider then they will charge you £15 per holding to transfer it as stock (known as an 'in specie' transfer). You can avoid this charge by selling your stock and then transferring to a new provider as cash but you will incur selling fees at the old provider and buying fees and stamp duty at the new provider.

It has nothing to do with moving cash to your bank account.

bigfreddiel

chuckbass wrote: »

I opened an iii trading account today. Deposited £500, but haven't bought any shares yet

I know there is a £20 quarterly fee, but I only intend to make two trades a quarter anyway, so fees will essentially be £0

At their fees page, I noticed this

Transfers Out
£15 per line of stock

What does this mean exactly? Is this anything to do with moving funds from my iii account back to my bank account?

Thanks

not meaning to be rude or anything, but are you sure you're up for this?

your obviously going to be a frequent trader and if anything eat up growth in a portfolio its trading at £15 a go and as a % of £500 thats going to be huge - yes 2% is a huge drain every time you trade

what's your strategy then for stock picking?

momentum, buy and hold, high yield, day trading.......?

cheers

fj

IronWolf

I thought the £20 per quarter charge is on the ISA, not the trading account.

cashbackproblems

should have gone to X-O

Fenella

IronWolf wrote: »

I thought the £20 per quarter charge is on the ISA, not the trading account.

The £20 per quarter charge is for the ISA and/or the Trading Account. It is one payment of £20 per quarter only for both accounts. This can be used at £10 per trade on either account.

Freecall

You can also share it between two accounts for family members.

koru

bigfreddiel wrote: »

not meaning to be rude or anything, but are you sure you're up for this?

your obviously going to be a frequent trader and if anything eat up growth in a portfolio its trading at £15 a go and as a % of £500 thats going to be huge - yes 2% is a huge drain every time you trade

what's your strategy then for stock picking?

momentum, buy and hold, high yield, day trading.......?

cheers

fj

The OP intends to trade twice a quarter. Is that frequent?

Interactive Investor charges £10 per trade, not £15.

Nevertheless, you are right that if the OP is only investing £500, the £20 charge per quarter will eat up 16% of the investment per year. Very unlikely that investment gains will be high enough to cover those costs, so the OP will be losing money.

However, if the OP intends making further investments, the costs might be tolerable.

bigfreddiel

koru wrote: »

The OP intends to trade twice a quarter. Is that frequent?

warren buffet would think it was frequent!

fj

sabretoothtigger

WB trades every day, dont take him literally. For the majority of his cash he may stay put but then he has alot to do many things with


500 is the kind of figure that should go into unit trusts where you can buy and sell without cost.
The fees they do charge to manage are % based not fee based like iii are wanting, hence for the pauper investor and thats anyone under 10k this is very much a better idea then trying to guess and sort out individual stocks.