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FX conversion fee rip off


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I know relative to some brokers (who are taking the absolute $%&*) IG fx conversion fee of 0.5% is okay, however its still an absolute joke that they and the industry can get away with this flagrant ripping off of customers.

I would like to know if IG have any plans to reduce their conversion fee ( trading US stocks in an ISA) to compete with others such as Trading212 who don't charge fx fees at all.... I have a moderate account with substantial turnover, like others I know, I'm now considering transferring my account to 212 as I cant see any justification for such high fx conversion fees now its been shown thats its possible to remove them al together... Perhaps 0.1% to cover costs would be understandable, but 0.5% so 1% round trip on trading any size is ridiculous. I easily give IG thousands, if not tens of thousands a yr in fx fees...

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  • 4 months later...

I agree it’s a total rip off. Unfortunately if you want to trade internationally outside USA and Uk, fees are extortionate within a SS ISA. Brokers with no ISA charge zero or immaterial FX charges on overseas shares, but then you are stuck with capital gains tax...really depends what’s the best option depending on frequency of trading and holding period, size, etc. If you trade mostly Uk and USA, you can start to find more reasonable ISA brokers not charging crazy amounts.

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  • 3 months later...
Guest Daniel

Only just found out by doing some accounting that my dividends have been drastically reduced because if the 1% round trip issue. Total madness on top of the £10 per trade and the £24 platform fee

 

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  • 3 months later...

Hi all,

On share trading accounts you can change your Currency conversion settings in My IG > Live accounts > Currency conversion:

image.png

With the Manual setting you can hold a foreign currency (e.g USD) on your account and avoid the instant conversion fee of 0.5%. 

Keep in mind that the share dealing commissions will change, clients who choose to convert currencies manually will pay commission of 2 cents per share with a minimum charge of $15 on US stocks. Changing your currency conversion settings influences the amount of commission you pay. Our team reviews these changes on a monthly basis, so it may take some time to update your account. Please be aware that changing from converting on 'instant' to 'manual' means that you'll no longer qualify for commission-free trading.

I hope that it gives you more information on the conversion fee.
https://www.ig.com/uk/investments/share-dealing/costs-fees

All the best - Arvin

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