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Long Term Investment


Guest Matthew

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Hi guys

Im looking to buy some shares from a US companies, and keep them for couple years.

1. Will I be charged overnight funding?

2. Fees are £10 per trade + £24 custody fee per quarter and thats it? No % from sales?

3. Can I deposit USD from my PayPal to my IG account to buy shares without exchange? USA shares have to be purchased in USD.

 

Thanks

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6 minutes ago, Guest Matthew said:

Hi guys

Im looking to buy some shares from a US companies, and keep them for couple years.

1. Will I be charged overnight funding?

2. Fees are £10 per trade + £24 custody fee per quarter and thats it? No % from sales?

3. Can I deposit USD from my PayPal to my IG account to buy shares without exchange? USA shares have to be purchased in USD.

 

Thanks

Hi Matthew,

You can refer to this page , all the information around fees for share dealing accounts can be found there.

1. There is no overnight funding charges as hey are use to carry over a position on leveraged account as you would be borrowing stocks.

2. The commission is  £10 per trade and £24 custody fee per quarter fore share trading. If you buy share in another currency there is a 0.5% Foreign exchange fee.

If you trade 3 times or more in the previous month / quarter you won't pay commission or custody fee.
image.png

image.png

 

You can set you account to manual conversion to avoid conversion fee and hold USD on your account, but your commission would then changed "Clients who choose to convert currencies manually will pay commission of 2 cents per share with a minimum charge of $15 on US stocks".

3.  Here are payments options :

image.png

More details here.
 

I hope that this information helps !

All the best - Arvin

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Hi Arvin

Thank you for your reply

1. Could you please explain what is a "leveraged account"?

2. If I fund my account with USD via PayPal, and buy shares in $ for example for $10.000, I will have to pay extra fee $15 total?

I earn most of my money in USD and I have it on PayPal, so I dont want to convert via PayPal to GBP, send GBP to you, and covert again to USD to purchase shares.

Thanks again

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Hi @Matthew

1. Leveraged accounts refer to our spread betting and CFD accounts. Please see the below link for more information:

https://www.ig.com/uk/spread-betting

https://www.ig.com/uk/cfd-trading

2. If you use the multi-currency account setting you will pay commission equal to the following on US shares: 2 cents per share or $15 whichever is greater both when you buy and when you sell. Please read the following link carefully for details on our charges

https://www.ig.com/uk/investments/share-dealing/costs-fees

Thanks

Anda

 

 

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Hi Anda

1. So after I open a live account, there will be options what type of a account I want to open?

2. Which option will be cheaper for me?

3. This question might sound dumb, but on my demo account I wanted to buy some Alphabet Inc shares, and it showed that 1 costs £56,862.80 ?  Is this right? Their shares costs around 2.842usd.

Thanks

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On 11/09/2021 at 03:22, Guest Matthew said:

Hi Anda

1. So after I open a live account, there will be options what type of a account I want to open?

2. Which option will be cheaper for me?

3. This question might sound dumb, but on my demo account I wanted to buy some Alphabet Inc shares, and it showed that 1 costs £56,862.80 ?  Is this right? Their shares costs around 2.842usd.

Thanks

Hi Matthew,

1. When you open an account you will have the option to open a share dealing account, CFD or Spread Bet account. Once your account is live you will have the option to add additional accounts : 
image.png

 

2. Both instant and manual conversion have their pros and cons, it will be depending on the size of trades your are placing and the frequency. Therefore, we can't advise what options is cheaper, the clients will need to work it out depending on their trading activity.

3. On a share trading account a Share of Alphabet Inc - A is :
image.png

On a CFD account similar to Demo account :
image.png

As the margin requirement is 20%.

I hope that it helps !

All the best - Arvin

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Hi Arvin

Thank you for explaining.

1. It might be better to fund via bank because PayPal will charge me a fee when I withdrawal money from my IG in the future right? And they charge around 3.9%

2. Im just interested in share dealing account for long term investments. I wont have to pay 20% margin there right?

So all the fees will be on share dealing account:

£10 per trade + £24 per quarter (if less than 3 trades) + 0.5% for exchange when buying foreign shares.

Thanks

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Hi @Matthew

Thank you for reaching out,

1. Paypal withdrawals are free of charge our side, although it may be that you are charged by Paypal itself. The advantage of Paypal is that withdrawals can clear immediately, or up to 24hrs at worst. EFT withdrawals are also free of charge but can take up to 3 business days to clear. You would need to weigh up the pros and cons of each method in this case. 

2. In the share dealing account you wont have to pay margin as you will be buying the share. Therefore you will pay for the purchase price of the share. 

The fees mentioned are correct

Thanks

Anda

 

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Hi Anda

Thank you for your help

1. PayPal will definitely charge me for withdrawal. Is there any way I could fund my account with USD via PayPal, and withdrawal to my bank in GBP?

2. So the fees I mentioned - that is all?

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  • 1 year later...
23 hours ago, unlimitednbv said:

Coolest thread ever, thanks! I was looking for this information all across the internet. I also want to invest in some US companies while being abroad. I wasn’t sure how to do that, and now I have more clues.

I have just managed to get a good job in a bank, and my paycheck is better than it used to be any time before. So, I want to take care of the future too and invest some of them into reliable companies I understand and like. Private equity interview prep was hard, but I still managed to get that position. Now, I want to make some basic investments to have some passive income in the future.

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  • 5 months later...

Hi there! It sounds like you are looking to get involved in some stock trading from US companies. It's important to make sure you understand the fees associated with trading and any other terms of the agreement before committing. Make sure to take the time to research and read the fine print so you know exactly what to expect. Good luck!

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