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  • FIRST POST
    • stphnstevey
    • By stphnstevey 10th Aug 18, 8:24 AM
    • 2,903Posts
    • 479Thanks
    stphnstevey
    Cheapest place to buy and hold International Shares
    • #1
    • 10th Aug 18, 8:24 AM
    Cheapest place to buy and hold International Shares 10th Aug 18 at 8:24 AM
    I was wondering who might have lowest:

    - FX rate charge/FX rate
    - Share dealing charge
    - Share holding charge

    for a purchase of USA shares in the region of 25k

    IWeb is 1.5%/5/no management fee
    AJ Bell is 1%/9.95/0.25% 30 cap
    H&L is variable %/11.95/no management fee

    Does X-O not allow trades in international shares?

    Would the FX charge be the biggest cost consideration here?

    I am presuming the FX charge is charged when you buy and also when you sell?
    If so, then to reduce cost it would be better kept in maybe a SIPP or ISA, as opposed to a trading account where you might want to buy and sell to use up your CGT allowance?
Page 1
    • bowlhead99
    • By bowlhead99 10th Aug 18, 8:42 AM
    • 8,311 Posts
    • 15,202 Thanks
    bowlhead99
    • #2
    • 10th Aug 18, 8:42 AM
    • #2
    • 10th Aug 18, 8:42 AM
    Does X-O not allow trades in international shares?
    Originally posted by stphnstevey
    Correct.


    Others that do support investing on US markets include IG.com and Interactive Investor. The latter won't be the cheapest but they do have multi-currency accounts meaning that if you sold Apple to buy Amazon you won't need to move the money back to sterling and back to dollars again on the sale and purchase; you can keep dollars in the meantime.

    Would the FX charge be the biggest cost consideration here?
    Every 1% on 25k is 250, which dwarfs the fixed fee for placing the trade, and remember when you come to sell you hope you'll have made a profit: converting 40k back the other way with 1% currency loading would be 400.


    I am presuming the FX charge is charged when you buy and also when you sell?
    It's for using your pounds to buy dollars to settle a purchase and for selling received dollars from a sale to put the pounds back in your pound account.

    If so, then to reduce cost it would be better kept in maybe a SIPP or ISA, as opposed to a trading account where you might want to buy and sell to use up your CGT allowance?
    It's better if you can minimise trading if you are being charged significant fees for that trading. Using a multicurrency account can help. However, note that even brokers who have multicurrency accounts don't offer them for ISAs as you can't hold foreign currency cash in an ISA, so if you're using one, you'll have to go back and forth between GBP and USD, CAD, HKD etc for all your foreign market trades.
    • Economic
    • By Economic 10th Aug 18, 9:28 AM
    • 412 Posts
    • 434 Thanks
    Economic
    • #3
    • 10th Aug 18, 9:28 AM
    • #3
    • 10th Aug 18, 9:28 AM
    IG have low fx charges:
    https://www.ig.com/uk/investments/share-dealing/comparison
    • Voyager2002
    • By Voyager2002 10th Aug 18, 12:00 PM
    • 12,603 Posts
    • 8,607 Thanks
    Voyager2002
    • #4
    • 10th Aug 18, 12:00 PM
    • #4
    • 10th Aug 18, 12:00 PM
    I was wondering who might have lowest:

    - FX rate charge/FX rate
    - Share dealing charge
    - Share holding charge

    for a purchase of USA shares in the region of 25k
    Originally posted by stphnstevey

    To answer your question, almost certainly the cheapest option would be Fineco. However, they are only available for "unwrapped" investments (no SIIPs nor ISAs) and their range of shares, ITs and ETFs seems a little limited.



    They offer a multi-currency bank account with share-dealing facilities on most major markets. Their 'margin' on currency exchange is absolutely minimal with no FX charges; their dealing fees are around 7 dollars for US shares, ETFs and ITs; there is no 'platform' or holding charge.


    If you decide to open an account with them, please use my referral code (PM me to get it).
    • Thrugelmir
    • By Thrugelmir 10th Aug 18, 3:34 PM
    • 61,352 Posts
    • 54,593 Thanks
    Thrugelmir
    • #5
    • 10th Aug 18, 3:34 PM
    • #5
    • 10th Aug 18, 3:34 PM
    Correct.

    Originally posted by bowlhead99
    You can if the stock holds an LSE listing.

    Transaction will be converted into GBP from the quoted currency.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • stphnstevey
    • By stphnstevey 11th Aug 18, 12:16 PM
    • 2,903 Posts
    • 479 Thanks
    stphnstevey
    • #6
    • 11th Aug 18, 12:16 PM
    • #6
    • 11th Aug 18, 12:16 PM
    I note H&L FX fees have changed in May to the following

    Deal value FX Charge
    First 5,000 1.00%
    Next 5,000 0.75%
    Next 10,000 0.50%
    Over 20,000 0.25%

    So 20k+ could be as low as 0.25%


    Is it worth transferring shares already purchased with a broker with a poor FX rate to a better one?
    • Economic
    • By Economic 11th Aug 18, 12:30 PM
    • 412 Posts
    • 434 Thanks
    Economic
    • #7
    • 11th Aug 18, 12:30 PM
    • #7
    • 11th Aug 18, 12:30 PM
    "The FX charge is applied to each deal value band. For example on a 10,000 deal, the charge will be 1% of the first 5,000 and 0.75% of the next 5,000." On a 20,000 deal the FX charge would be 137.50 or 0.6875% and H&L charge 25 to transfer shares out so it may be worth transferring out to avoid FX charges.
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