Jump to content

Technically you can never have free US trading, right?


Recommended Posts

Hi Folks,

The platform advertises that you need to place three or more trades in the previous month to avail of the free trading on US stocks (no $15 commission) for the subsequent month. However, even with that commission fee gone you're going to have to pay IG for the currency conversion each time. You're going back and forth between buying and selling, GBP to USD to GBP ...this will equate to a lot of money.

So, you've realised the above and to avoid this really ridiculous and expensive merry-go-round you turn on multi-currency feature, right? In your head you think:

  "I want to exclusively trade US stocks, I've waited one month (you'd have rathered to just pay IG and not need to wait), made more than three trades on that currency merry-go-round, I am happy to pay the reasonable quarterly fee to IG from here on in and keep the account as USD while availing of their most advertised feature, the commission free trading on US stock market".

The new month arrives and you can have a great time trading on the US stock market with your dollar that doesn't keep eating away at any trade profits with each buy and sell. However, the next month arrives and menacing commission fee is back! But you traded at least three times last month, what gives? Ah! But you used the multicurrency feature, and this means on the subsequent month you will not be eligible for commission free trading. You're back to square one. Your choice is to either pay IG the fee for every conversion in every trade or prevent this and keep the respective currency but also you must pay IG a commission. 

 

Anyone else experience this? I'm hoping I'm completely wrong, but contacting the helpdesk seems to confirm this ...

  • Like 1
Link to comment
18 hours ago, HeadBeeGuy said:

Anyone else experience this? I'm hoping I'm completely wrong, but contacting the helpdesk seems to confirm this ...

I made a few posts about this, its  very poor service , you either pay the commision fee or work on the pretence of zero commision , but then a rubbish  FX rate .

And if you hold investments for a long time your profits can get killed in the advent of an adverse FX rate , (should you elect to automatically have FX conversion )

 

 

  • Like 2
Link to comment
53 minutes ago, DavyJones said:

I made a few posts about this, its  very poor service , you either pay the commision fee or work on the pretence of zero commision , but then a rubbish  FX rate .

And if you hold investments for a long time your profits can get killed in the advent of an adverse FX rate , (should you elect to automatically have FX conversion )

 

 

Sorry I didn't find your posts originally after trying to search in the bar, but you're echoing my own experience there, Davy.

It is definitely poor service, and I would say it's not unfair to call it deceitful practice.

It's their most advertised feature. The absolutely rubbish FX rate means constant commission is a necessity, and with that is the issue you've mentioned.

A structure for a flat fee to pay for short term investment/trading really would be great but is elusive here it seems, and instead we've been very much misled with the marketing. 

Link to comment
19 hours ago, HeadBeeGuy said:

Sorry I didn't find your posts originally after trying to search in the bar, but you're echoing my own experience there, Davy.

It is definitely poor service, and I would say it's not unfair to call it deceitful practice.

It's their most advertised feature. The absolutely rubbish FX rate means constant commission is a necessity, and with that is the issue you've mentioned.

A structure for a flat fee to pay for short term investment/trading really would be great but is elusive here it seems, and instead we've been very much misled with the marketing. 

 

yeah I agree, the other option of paying a $30 round trip for non FX conversion is just a sneaky way of doing business.

It bugs me that they hide this in the fine print especially when there is no logical reason for it and no one at IG can give a straight answer as to why , 

They should be encouraging clients to trade not discourage them. 

 

Edited by DavyJones
  • Like 2
Link to comment
On 10/08/2020 at 07:59, DavyJones said:

 

yeah I agree, the other option of paying a $30 round trip for non FX conversion is just a sneaky way of doing business.

It bugs me that they hide this in the fine print especially when there is no logical reason for it and no one at IG can give a straight answer as to why , 

They should be encouraging clients to trade not discourage them. 

 

Hi Guys,

I'm very interested in this topic as I want to trade US markets also, but don't want to get hit with FX conversion every time I make a trade. You mention turning on multi-currency, can you tell me how to do this please? Sorry if this is an obvious question but I'm new here and still trying to find my way around.

Link to comment
  • 5 weeks later...

Hi all, 

I have just been hit by a £190 conversion fee for trading in Coca Cola for 5 days. Luckily I was still in for a small profit but my rage that IG took so much has got the best of me. 

Does anyone know how to turn on multi-currency as suggested by pedmurray above? Also if someone could send me a link to the fees involved in doing this I would be very grateful. 

Many thanks in advance.

Link to comment
  • 2 weeks later...

I have lost 1.5% for each trade (buy+sell) and eroded away thousands before realizing it. 
I am thinking to move to IB where I think I will be able maintain USD. Anyone else uses it? I think it is better to discuss this in the forum as I a greatly affected by this conversion fees... and the community would have been. IG should allow a way to avoid this. Agreed that it will reduce their profit but it will be fair to the customers if they care. A fair competition.

Link to comment

The foreign currency spread is too much on the automatic conversion, so I pay the manual 15 dollar commission but I'm not sure this is more economical, especially when wanting to build a position.  I'm moving my cash into another brokerage for this reason.  I can apparently convert my dollars manually from USD to GBP, within my account, so I can do this at a time when the exchange rate is more in my favour, before I withdraw.  Is this easy to do does anybody know and are there extra charges?  The other options is reverting my settings back to manual conversion and the system will do it for me?  What is best?

Link to comment
  • 1 month later...
On 09/08/2020 at 09:27, DavyJones said:

I made a few posts about this, its  very poor service , you either pay the commision fee or work on the pretence of zero commision , but then a rubbish  FX rate .

 

 

The post office have used this strategy for years on their travel money. Everyone loves "free" currency conversion!

Link to comment
  • 2 months later...
On 18/11/2020 at 06:39, Bopperz said:

The post office have used this strategy for years on their travel money. Everyone loves "free" currency conversion!

Yeah the post office scam of free conversion! Now, I never fell for that one, obvious, but the IG commission one is definitely more deceitful because of the layers involved: they'll go to the effort to explain number of trades yada yada but it's all fodder to still take an extra cut.

Link to comment
  • 4 months later...

sadly it is a bit deceiptful  as need to use instant currency conversion to get the benefit of zero commission on US shares and that means  a likely overall loss on a trade . It was simply missleading advertising . So best to opt for manual conversion and pay the commissions if trading international shares . 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • The first half of 2024 saw the debut of spot bitcoin exchange-traded funds (ETFs). However, several lesser known cryptocurrencies such as BGB (annual increase of 100%, market value of US$1.6 billion); **** (annual increase of 90%, market value of US$1.5 billion), WIF (annual increase of 1,306%, market value of US$2.1 billion); PEPE (annual increase of 815%, market value of US$5 billion) also gained significant attention during this period. The overall market value of all cryptocurrencies rose by $661 billion in the first six months of 2024. BGB, the native token of the Bitget cryptocurrency exchange, was among the top 10 best-performing cryptocurrencies with a market capitalization over $1 billion in the first half of 2024. The token saw a 100% increase in its price during this period. While the exchange token is not considered a "meme coin" like some of the other top-performing tokens on the list, its significant price appreciation suggests growing investor interest and adoption of the exchange and its associated cryptocurrency. As one of the world's largest crypto exchanges, The exchange performance reflects the broader bullish sentiment in the crypto market over the first six months of 2024.
    • PixelVerse, a platform designed to transform virtual interaction is gaining traction amongst the Metaverse, Gaming, NFT and DEX enthusiasts. Out of curiosity I digged dip to get a grasp of what the project is really about.  At first glance, Pixelverse gives an aura of an encompassing ecosystem that meets digital realm needs. For instance, Metaverse enthusiasts bask in the euphoria of using PixelLaunch, a launchpad product that also offers access to innovative Metaverse and gaming experiences. The Gaming, NFT, and DEX counterparts are engrossed in PixelHouse, PixelNFT and PixelSwap; accessing a thrilling/rewarding gaming experience, an open NFT marketplace and a customised DEX respectively. Pixelverse could offer immersive virtual world experience especially for $PIXEL holders. Understandably, this vast token utility has the community anticipating the imminent listing on Bitget. Which feature are you looking to explore most?
    • Q2 Netflix earnings preview and share price analysis.   Source: Adobe images   Shares Netflix Revenue Income Streaming media Stock market   Written by: Axel Rudolph FSTA | Senior Market Analyst, London   Publication date: Wednesday 10 July 2024 17:06 Netflix's second-quarter 2024 earnings preview: the fight to stay on top As Netflix gets ready to announce its earnings for the second quarter (Q2) of 2024, investors want to know if the popular streaming service can keep attracting lots of new subscribers, make the most of its ad-supported plans, and remain the top streaming platform. When will Netflix share its latest earnings information? Netflix will reveal its April through June 2024 financial results after the stock market closes on Thursday, 18 July 2024. Another Netflix revenue increase seems to be on the cards Netflix expects its revenue to increase 16% year-over-year (YoY) to $9.49 billion in the second quarter of 2024 but analysts predict Netflix's Q2 revenue will be slightly higher at $9.53 billion. In the first quarter of 2024, Netflix's revenue was $9.37 billion, up 15% from the prior year. Earnings are also expected to rise Regarding earnings, Netflix forecasts net income of $2.06 billion, or $4.68 per share, for the second quarter of 2024 whereas analysts estimate Netflix's Q2 earnings per share will reach $4.74. For comparison, in Q2 2023, Netflix reported a net income of $1.48 billion, or $3.29 per share. Netflix's net income in quarter 1 (Q1) 2024 was $2.3 billion, or $5.28 per share. Further revenue growth in the pipeline YoY Netflix expects 21% FX-neutral revenue growth in Q2. Paid net additions are likely to be lower in Q2 than Q1 due to seasonal trends but global average revenue per membership is predicted to increase YoY in Q2 (on an FX-neutral basis). In Q1 2024, Netflix added 9.3 million net subscribers, grew global paid memberships 16% YoY to 269.6 million, and increased average revenue per membership 1% YoY (or 4% on an FX-neutral basis). Engagement remained solid despite changes like paid sharing. Netflix sales revenue chart   Source: TradingEconomics For Q2 2024, Netflix forecasts $2.52 billion in operating income and 26.6% operating margin, versus $1.82 billion and 22.3% in Q2 2023. This compares to Q1 2024 operating income of $2.63 billion and operating margin of 28.1%. LSEG Data & Analytics analyst Netflix recommendations LSEG Data & Analytics data shows a consensus analyst rating of ‘buy’ for Netflix – 11 strong buy, 18 buy, 16 hold and 1 sell (as of 10 July 2024).   Source: Refinitiv Netflix – technical view The Netflix share price, up over 45% year-to-date, is approaching its November 2021 record high at $700.99 which, since it was made near the major psychological $700 mark, probably won’t be easily overcome. Netflix monthly chart   Source: TradingView.com A rise above the $700.99 all-time high would allow for the $750 region to be in focus, though. On the daily chart, the Netflix share price has been range bound since late June but last week did rise to its current July high at $697.49, close to the $700.99 record peak. The upside is being supported by the May-to-July uptrend line at $678.42 below which good support can be spotted between the May high and the late June and early July lows at $633.78 to $662.30. While this area underpins, the short-term uptrend will remain valid. Netflix daily chart   Source: TradingView.com For a medium-term top to be formed, the Netflix share price would have to fall through its $626.44 June low. Slightly above this level, the April high at $639.00 would be expected to offer support in such a scenario.
×
×
  • Create New...
us