Understanding costs/commissions

[WW1984]

I bought some US shares last Friday and got stopped out today. I was quite surprised at the difference that was left in my account as I thought the only fees (when I have traded 3 times the month before) were small. Is there a 0.5% FX fee on all GBP to US shares? 

[CharlotteIG]

21 hours ago, WW1984 said:

I bought some US shares last Friday and got stopped out today. I was quite surprised at the difference that was left in my account as I thought the only fees (when I have traded 3 times the month before) were small. Is there a 0.5% FX fee on all GBP to US shares? 

Hey, 

Thanks for your post.

If in the last calendar month you placed 3 US trades on your share dealing account you should not be charged commission on your US trades this month. The rate we use is our spot rate and a 0.5% charge. 

If you trade US shares a lot you can change to a manual conversion account. This can be done on the MyIG page by selecting Live accounts> Currency Conversion> Manual> Save preference. But, please note for multi-currency accounts: These figures apply to clients who opt for the default setting of 'instant currency conversion'. Clients who choose to convert currencies manually will pay commission of 2 cents per share with a minimum charge of $15 on US stocks. So you will miss out on the lowered commission. 

If you want to query the amount on your account reach out to helpdesk.uk@ig.com and they can down the balance and reasons for you. 

All the best 

[Arindom]

On 22/10/2020 at 13:54, CharlotteIG said:

Hey, 

Thanks for your post.

If in the last calendar month you placed 3 US trades on your share dealing account you should not be charged commission on your US trades this month. The rate we use is our spot rate and a 0.5% charge. 

If you trade US shares a lot you can change to a manual conversion account. This can be done on the MyIG page by selecting Live accounts> Currency Conversion> Manual> Save preference. But, please note for multi-currency accounts: These figures apply to clients who opt for the default setting of 'instant currency conversion'. Clients who choose to convert currencies manually will pay commission of 2 cents per share with a minimum charge of $15 on US stocks. So you will miss out on the lowered commission. 

If you want to query the amount on your account reach out to helpdesk.uk@ig.com and they can down the balance and reasons for you. 

All the best 

Hi @CharlotteIG

I just posted a question similar, but seeing this post wanted to respond to this for a better understanding of my scenario.

I am in UK but deal entirely on US ETF , TQQQ SOXL and TNA TZA. 

Now though in some trades when it says profit, I have noticed that there is a loss in my account. I do as much as 3 in a month .

So my question to you is ; 

1. If I choose to stay in Dollars for my trades, I am getting a feel that it might be a bit more profitable. But I am not sure with the charges, is it $15 every trade , both buy and sell? 

2. Do the conversion fees be not charged then if its dollar and trading US ETF?

3. Do I need to convert before withdrawal manually or will it be converted before withdrawal anyway? Any charges then?

Will be really helpful with the answer.

Regards

Arindom

Edited November 7, 2020 by Arindom

[Arindom]

[CharlotteIG]

On 07/11/2020 at 12:54, Arindom said:

Hi @CharlotteIG

I just posted a question similar, but seeing this post wanted to respond to this for a better understanding of my scenario.

I am in UK but deal entirely on US ETF , TQQQ SOXL and TNA TZA. 

Now though in some trades when it says profit, I have noticed that there is a loss in my account. I do as much as 3 in a month .

So my question to you is ; 

1. If I choose to stay in Dollars for my trades, I am getting a feel that it might be a bit more profitable. But I am not sure with the charges, is it $15 every trade , both buy and sell? 

2. Do the conversion fees be not charged then if its dollar and trading US ETF?

3. Do I need to convert before withdrawal manually or will it be converted before withdrawal anyway? Any charges then?

Will be really helpful with the answer.

Regards

Arindom

Hey @Arindom, 

Thanks for your post. 

1. If you choose to change your conversion from instant to manual you will be subject to the old commission fees which is a minimum of $15 (or 2 cents per share depending on which is larger) when you buy and sell. (So if you're buying and selling stock that's less than the 2 cents per share minimum you will have to pay $15 to buy and another $15 to sell. 

2. If you only have dollars on your account and you're buying US stock there will not be any conversion fees. When you sell the stock it will go straight into your dollar pot so again no conversion fees. 

3. This one is a little more tricky. So yes we do allow you to deposit and withdraw in dollars (when your base currency is sterling) however if you're new to IG and you deposited all the funds in sterling we may ask you to send the funds back in sterling. (please note these are rules that apply for share dealing accounts. With an ISA you have to convert the funds back to sterling.). 

I hope this helps and if you need me for anything else @ me

All the best 

Charlotte 

 

[Guest VickyB]

@CharlotteIG  following the conversation thread, I have the same issue with the commission. Why there is not a single notification to inform the users that they will get charged $15 buy or sell??

Under my currency conversation the options are:  'instant' or 'Daily'. It is currently set as ' instant' and I get charged $15 for every buy and sell position. Is this right??

[CharlotteIG]

15 hours ago, Guest VickyB said:

@CharlotteIG  following the conversation thread, I have the same issue with the commission. Why there is not a single notification to inform the users that they will get charged $15 buy or sell??

Under my currency conversation the options are:  'instant' or 'Daily'. It is currently set as ' instant' and I get charged $15 for every buy and sell position. Is this right??

Hey VickyB

Others have mentioned this before and the feedback has been passed on. We're looking at better ways to let traders know about all the costs involved with one trade before they open the position. 

Instant conversion means the position will convert at the exchange rate at the time you close the position. Daily means at the end of the day we will convert your positions. The amount depends on the market you're trading on: 

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-shares-cfd-product-details

All the best 

[MSP1]

Hi @CharlotteIG. Just reading this thread as Inhave just joined and noticed this. I have a Share dealing account only, I cannot see the options to change this preference. Does the charges discussed above not relate to share dealing? 
thanks

[Caseynotes]

22 minutes ago, MSP1 said:

Hi @CharlotteIG. Just reading this thread as Inhave just joined and noticed this. I have a Share dealing account only, I cannot see the options to change this preference. Does the charges discussed above not relate to share dealing? 
thanks

Hi, the title of the linked page refers to shares on leveraged accounts (spread betting and CFDs) whereas the Share Dealing account is non-leveraged so check the Share dealing info pages instead. 

Share Dealing | Buy and Sell Shares with Zero Commission on Stockbroking | IG UK