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Commission free trading?

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Posted (edited)

Does any body know the rules of commission free trading??

I understand there is a charge on the first three trades, which is waived if more than 3 trades are performed in a given month..

I'm also of the understanding that this doesn't apply to the first month. Therefore would a trader making 10 trades be charged commission on all 10 trades???

Edited by TunsterUK

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TunsterUK

I had the same question , but I believe I have finally worked out the answer myself and can answer you from looking at my own trade history across 2 accounts. You will be charged for every trade in your first month.  Rules are listed, but not well explained on https://www.ig.com/uk/investments/share-dealing/costs-fees#tradingshares  - and see screenshot. The concession is triggered for the next month once you have done 3 trades in any account and any currency. For US trades the concession reduces the rate from £10 to £0 , for UK trades concession reduces the rate  from £8 concession to £3. There is no concession in other international markets

I opened  an ISA in April -

In ISA April I made 3 UK trades and 1 US trade and paid £8 for each of the UK and £10 for the US - total $£34

In ISA May I made 3 US trades - all free

In ISA June I made 2 US trades -  both free

In ISA July I made 2 UK trades -  (£3 each) , and 3 US trades (free)

I did not understand why my July trades were free (US) and reduced (UK) when I only made 2 transactions in June  - but I looked at my trade history in my other account  Share Dealing Account (SDA)

In SDA April I made no trades

In SDA May I made 3 US trades in May, all free.

In SDA June  I made one EUR trade  (€10)   

In SDA July I made 3 US trades (all free), on EUR trade (€10)

So it looks like the total of 3+ to qualify for free (US) or £3 (UK), counts across accounts - it is a concession to the account holder, not to the specific account only - and it applies to calendar months . Any transaction counts to the 3 +  so since I made 1 EUR trade in June and 2 US trades - all my July US trades  will now be free and all my UK trades will be £3.

Your best bet for now may be to make 3 trades now and then wait will next month especially  if you are planning to make any relatively small trades where the commission would represent a significant percentage. also you might try a strategy to keep the concession,  once you get to free trading in August and you are worried that you have only made 2 trades you could keep the concession by  making  a few small trades just to qualify for September, that may work - e.g. sell a single holding on one stock you own, and then buy it again a week later (hopefully on a dip) .

Hope that helps and good luck investing 1601049678_Screenshot2020-07-15at13_07_15.thumb.png.0a4612da7b5477b2f58aa7e082210e1a.png

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