Share Dealing Discussion Area

Emperor2014

Could I have some advice on some Terms & Conditions (T&C) please?

I am looking at opening an execution only share dealing account with X-O. In their T&C's they state the following which has me a bit concerned (I may be getting the completely wrong end of the stick):

We will not be liable for any loss, cost, liability or exposure, which may arise in acting on instructions which are subsequently discovered not to have been given by you or with your authority.

Is the above quote standard procedure across the share-dealing/execution only companies?

Interest accrued on Account money not immediately committed for in vestment shall be calculated at 1% below the published HSBC standard current account rate from time to time. Interest accrued of less than £1.00 arising on each payment event shall be for our benefit.

Does the above quote mean that I could, technically speaking, incur negative interest on any balance I hold in my account i.e. if the HSBC standard current account rate is >1%?

Ifts

Interest accrued on Account money not immediately committed for in vestment shall be calculated at 1% below the published HSBC standard current account rate from time to time. Interest accrued of less than £1.00 arising on each payment event shall be for our benefit.

Emperor2014 wrote: »

Does the above quote mean that I could, technically speaking, incur negative interest on any balance I hold in my account i.e. if the HSBC standard current account rate is >1%?

I hold a HSBC standard current account and it does not pay any interest.

I've also had a X-O share dealing account for a number of years and in all that time I have never incurred negative interest.

Emperor2014

Thanks Ifts.

I have another question and any answers will be gladly received... Are there any other no so obvious/hidden costs, beyond the fees charges by the share dealing company? I've read into stamp duty & capital gains taxes, are there any other taxes that will be payable upon having bought or sold shares?

Ifts

No hidden charges just the £5.95 flat rate per trade with X-O.co.uk -

http://www.x-o.co.uk/our_charges.htm


edit: sorry on re-reading your post you are already aware of the above charges by the share dealing company.....

No other taxes apart from stamp duty and CGT.

Stamp duty is payable at 0.5% of the value of the shares purchased.
It's not payable on transactions of less than £1,000 for paper dealing (but it is payable on non-paper dealing even under £1K).

Emperor2014

Just to clarify on the stamp duty (SD). Is the 0.5% rate applicable to amount in excess of a £1,000 e.g. if I bought shares for say £1,500, SD would only be charged on the £500 or would SD be charged on the full amount?

Also, is the SD applicable to the fee (£5,95) charged by the share-dealing company as well as the cost of the shares? Or only the latter?

Thanks for answering my questions, very much appreciated... i'm a beginner @ buying shares :T

grey_gym_sock

perhaps stamp duty doesn't apply to certificated deals under £1000, but it does apply to electronic dealing, regardless of the deal size.

it's 0.5% of the cost of the shares only, not also of the stock broker's fee.

Ifts

Emperor2014 wrote: »

Just to clarify on the stamp duty (SD). Is the 0.5% rate applicable to amount in excess of a £1,000 e.g. if I bought shares for say £1,500, SD would only be charged on the £500 or would SD be charged on the full amount?

SD will be charged on the full amount (£1,500 = £7.50 SD).

Also, is the SD applicable to the fee (£5,95) charged by the share-dealing company as well as the cost of the shares? Or only the latter?

Only on the latter.

There is another tiny charge! PTM levy of only a pound on transactions above £10K -

Whenever a transaction is made on the LSE or other London-based exchange that is greater than £10,000, the details of the transaction get passed on to the panel for their evaluation, and a levy is charged of (currently) £1.00 on the transaction, which goes to the panel as payment (known as the "PTM levy").

Choochi0

Hi All,

I have a share dealing account with Halifax and I have been reading through the companies I'm interested in on their research centre. Should I be looking at other sources for my research and, if so, what and where?

Thanks

Ifts

grey_gym_sock wrote: »

perhaps stamp duty doesn't apply to certificated deals under £1000, but it does apply to electronic dealing, regardless of the deal size.

Thanks for the heads up on that.

Ive never done a deal size of that amount so could not check my past trades to see if I ever had to pay SD on electronic dealing for an amount under £1K.

Playing around on this calculator tells me you are of course right:
http://sdccalculator.hmrc.gov.uk/SDSSMain.aspx

dave875933

Is the above quote standard procedure across the share-dealing/execution only companies?

I think if it's referring to actions by someone who is not acting fraudulently then yes (eg someone who you had previously authorised and thinks they should still deal for you but you didn't want them to make that deal). If it's someone who is acting fraudulently (eg a stranger stealing of username and password, or a known person abusing a past authority) then I think at least some terms and conditions say you'll be reimbursed, so this would be not so good in comparison.

If it's an important risk to you, as it should be to all of us really, then I think you need to research it a bit more before choosing provider.

I don't know what the law is on whether such terms are enforceable mind you. I do know that banks over the past few years have tried to shift the burden of proof to you to show that you didn't negligently allow your login details to be stolen (eg not have sufficient virus protection), as it would seem that if you didn't meet a certain standard of care then you wouldn't get anything back.