• 0

## Question

Hi,

I'm new to this so please do excuse me for my ignorance.

Can you please explain what commissions/fees/charges and how they are applied when placing a trade to buy shares of an Australian company on the ASX from an ISA account?

For example, if I was to buy £5,000 worth of Australian shares priced at AU\$0.0.450, exactly how and at what stage will the fees/commissions/charges apply? I've had a look at my statements but even then the figures just do not add up for me.

From the fees/commissions page on your website I've understood the following:

• AU\$10 commission is applied for trading Australian Shares - at what stage will this commission be applied? After the conversion of currency?
• Foreign Exchange fee of 0.5% - at what stage is this fee applied and is it applied to the total sum?

So going buy the above example and the below assumptions, I would assume the fees/commissions/charges are applied as following:

Assumptions

GBP £1 = AU\$1.83
Amount being spent t buy shares = £5,000
Share Price of stock = AU\$0.0450

Calculations

£5,000 = AU\$9,150
Foreign Exchange fee of 0.5%, so 0.5% of £5,000 = £25, now total is £5,025
AU\$10 commission for buying Australian shares - now total is £5,025 + AU\$10 (£5.47 according to above exchange rate) = £5,030.47

Then you have your custody fee of £24 every quarter for the entire ISA account no matter how much is being held in it in terms of capital and gains? Is this correct?

Would really appreciate if you can clarify and break this down for me.

Thanks

## Recommended Posts

• 0

Thanks for your answer Fletch. I've just checked their commissions page again and you're right, its 0.1% for Australian shares with a minimum of \$10, I miss-read it the first time.

I just want to make sure I'm aware of all the commissions/fees/charges upfront and not have last-minute surprises!

Hi @aftrade @Fletch, that is correct. the fees are stated on the link below:
https://www.ig.com/uk/investments/share-dealing/costs-fees

All the best - Arvin

• 0

Anyone?

• 0

• 0

Thanks for confirming gezmond, much appreciated! 👍

• 0

The custody fee is only payable if you have made no trades in the quarter. Any trade you make will offset the custody fee - making three trades during a quarter will cause the fee to be waived entirely.

• 1
• 0

Now when it comes to selling the shares I listed in the example above (Australian Shares), is there just the Foreign Exchange fee? Do I also have to pay the AU\$10 commission for selling Australian shares? Are there any other commissions/fees/charges I'm missing out or not aware of when it comes to the selling side?

• 0

Commission fees apply to both sells and buys. I was under the impression that the commission on Australian shares was 0.1% with a minimum of \$10 rather than a flat fee - at least that's what is claimed on their charges page

• 1
• 0

Thanks for your answer Fletch. I've just checked their commissions page again and you're right, its 0.1% for Australian shares with a minimum of \$10, I miss-read it the first time.

I just want to make sure I'm aware of all the commissions/fees/charges upfront and not have last-minute surprises!

## Create an account

Register a new account