Jump to content
  • 0

Trading charges and commissions on trades made in an ISA. Please clarify!


aftrade

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

Link to comment

8 answers to this question

Recommended Posts

  • 0
15 hours ago, aftrade said:

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

Link to comment
  • 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.

  • Like 1
Link to comment
  • 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?

 

 

Link to comment
  • 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

  • Like 1
Link to comment
  • 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!

 

Link to comment

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      16,050
    • Total Posts
      76,917
    • Total Members
      64,028
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Dochfour
    Joined 24/09/21 13:40
  • Posts

    • Great post... Inflation is less transient than central bankers hope. The current result is transient (they hope) stagflation. Reflationary trends are more likely than not, though the  general market correction that is being deferred once more, is likely over due come Q1 22....more likely before.  As for your clever strategy, respect. As a simple Oil and gas trader I judge different metrics (like actual physical supply, storage and expected and real demand) for example. Plus order flow is useful. Have a great day trading all. Finally getting round to booking some holiday time that's not in the UK...which is a good sign..  
    • In the news; - oh dear never mind, it's all good data;  'A Turkish Prof, Zafer Kurugöl has said on TV that they have "accidentally" vaccinated babies with covid vax (adult dosage) and will publish the results (of their accidental experiment). He was also member of the Scientific Committee at Pfizer's Scientific Research Competition.' Professore Notte Botta @note_bot_ Pfizer’in Bilimsel Araştırmaya ve Genç Araştırmacılara Desteği Devam Ediyor | Pfizer Türkiye     'Newly reported deaths in Hawaii have risen 1,740% in the past two months despite one of the longest mask mandates in the world & overwhelming compliance…so I have to ask once again why Ron DeSantis did not mandate double masking & spend more time promoting vaccinations there.'  IM @ianmSC         Cases in South Korea have been at record high levels for nearly 3 months now despite 99% mask compliance, mask mandates and fines for non-compliance, so it’s always nice to hear politicians and experts keep pushing more mask mandates & forcing masks on 2 year olds.  IM @ianmSC   .
    • Ei Robsy, unfortunately nothing apart from the comment above. you? any more luck?
×
×
  • Create New...