ISA Recommendation for Trading US Shares

abeezar
abeezar Posts: 84 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
edited 26 March 2024 at 4:18PM in ISAs & tax-free savings
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




«1

Comments

  • Mark_d
    Mark_d Posts: 2,380 Forumite
    1,000 Posts First Anniversary Name Dropper
    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
    Futuristic Posts: 1,162 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    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
    gravel_2 Posts: 618 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    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
    wmb194 Posts: 4,746 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    For the next tax year, so from 06/04, T212 has a 1% cashback offer on Isa contributions.



    https://www.trading212.com/isa
  • Futuristic
    Futuristic Posts: 1,162 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    gravel_2 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
    LHW99 Posts: 5,148 Forumite
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    If you do this presumably you will need to complete a W8BEN form?
  • wmb194
    wmb194 Posts: 4,746 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 23 March 2024 at 9:37AM
    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.
  • 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
    Johnjdc Posts: 392 Forumite
    Ninth Anniversary 100 Posts Name Dropper
    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
    ColdIron Posts: 9,753 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    edited 23 March 2024 at 4:40PM
    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
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