ISA Recommendation for Trading US Shares

abeezar

Hi

I would like to open Stocks and Shares ISA to deal with US shares.
I see there are plenty of providers and I seem to think T212 is a better fit.

Consider starting with 5K ...and slowly building up to 50K+ ( year on year).

T212 does not charge Platform Fees / Buy and Sell transaction charges - but a 0.15 % FX fee - so it will be 0.30% ( buy and sell).

So for a 50K with T212  - FX Fees is £150. 

So any recommendations from my fellow MSE members?

Regards

Mark_d

I've used AJ Bell for the last 15 years.  Fees are amongst the lowest and the service has always worked very well for me.  I've been tempted to try freetrade or HL but as I don't have any problems with AJ Bell it's likely that freetrade would be worse rather than better.

Futuristic

Interactive Brokers. £3/mo ISA fee, 0.002% fx fee. US stock trades for me are around £2-3 each time on higher amounts than you mentioned.

gravel_2

Futuristic said:

Interactive Brokers. £3/mo ISA fee, 0.002% fx fee. US stock trades for me are around £2-3 each time on higher amounts than you mentioned.

Keep me right but think the minimum FX fee is 2 USD on IBKR regardless of spend so for regular trading of smaller amounts T212 could work out to be more economical.

wmb194

For the next tax year, so from 06/04, T212 has a 1% cashback offer on Isa contributions.



https://www.trading212.com/isa

Futuristic

gravel_2 said:

Futuristic said:

Interactive Brokers. £3/mo ISA fee, 0.002% fx fee. US stock trades for me are around £2-3 each time on higher amounts than you mentioned.

Keep me right but think the minimum FX fee is 2 USD on IBKR regardless of spend so for regular trading of smaller amounts T212 could work out to be more economical.

Considering the facts stated on OPs trade size, it will still be cheaper at IBKR.

For GIA there's no reason for either, just go with robinhood UK. If they launch ISA product then I would move there. 

LHW99

If you do this presumably you will need to complete a W8BEN form?

wmb194

LHW99 said:

If you do this presumably you will need to complete a W8BEN form?

These days all brokers have you fill this in before they allow you to trade US listed securities.

shortseller09

Futuristic said:

Interactive Brokers. £3/mo ISA fee, 0.002% fx fee. US stock trades for me are around £2-3 each time on higher amounts than you mentioned.

IBKR fee is £3 minimum per trade, over £6000 consideration is 0.05%, so on a £50k trade would be £25 one way.

Johnjdc

A small point I didn't realise until quite recently.

Note that - as I understand it - ISAs don't fully protect you from tax on dividend income from foreign shares.

ColdIron

Johnjdc said:

Note that - as I understand it - ISAs don't fully protect you from tax on dividend income from foreign shares.

That's right, for instance you wouldn't be able to reclaim all of the US withholding tax, unlike a SIPP, as the US doesn't recognise UK ISA status so it would be the same as a GIA in that respect

ISAs don't even fully protect you from some UK taxes. E.g. stamp duty and the Panel on Takeovers and Mergers levy